So you’ve recently purchased a vehicle and have made the unfortunate determination it meets the criteria of lemon law in California. There are probably a lot of things running through your mind about what to do next. Unfortunately, earning a lemon law buyback is rarely an easy process. The end goal is that the manufacturer or dealer meets your rights.
What’s Considered a Lemon?
Under California lemon law, a defective vehicle may be ruled a lemon if:- It was covered under the manufacturer or dealer warranty when the defect was first reported; and
- It has one or more defects/nonconformities that substantially impair the vehicle’s use, value, or safety; and
- The vehicle has been subjected to a reasonable number of repair attempts by a manufacturer-certified facility to fix the defect/nonconformity; or
- The vehicle has been out of service for repairs on one or more defects/nonconformities for 30 cumulative days; and
- The defect or nonconformity must not have been caused by driver abuse or neglect.
- A replacement of the defective vehicle.
- A buyback of the defective vehicle.
Lemon Vehicle Replacement Policy
For starters, let’s discuss lemon law replacements. It’s important to note that this remedy is optional for both the manufacturer and the consumer. Contrary to a lemon law buyback, a replacement only occurs when both parties agree on the terms. In other words, if you want the manufacturer to replace your lemon vehicle, you cannot force them to do so. If both parties agree, the manufacturer must replace the defective vehicle with a new, identical one, along with a fresh warranty. Or, they may provide a replacement vehicle of the same value. Furthermore, the manufacturer must cover all collateral fees associated, which typically include license fees, sales tax, and registration, in addition to all legal fees from filing the case. Many consumers are hesitant to choose a replacement vehicle from the same manufacturer that just sold them a defective one; leading them to choose the buyback option. The process of filing lemon law claims for a replacement is not always clear. Consult with a qualified lemon car lawyer to learn more about your options.California Lemon Law Buyback Guidelines
The California lemon law buyback program, on the other hand, requires a different procedure than replacements.What is a Lemon Law Buyback?
A California lemon law buyback is a vehicle that the manufacturer has repurchased following the events of a lemon law dispute. In the event that the manufacturer repurchases the vehicle, they are required to pay you the “lemon law buyback amount”. Buyback values involve many different factors specified in the lemon law claims. The amount the manufacturer provides in the lemon law buyback must include the down payment for the vehicle, the monthly payments you have made, as well as the remainder of the loan. The manufacturer may NOT be responsible for any late fees or penalties the consumer may have accrued under the terms of the loan. Additionally, the manufacturer is responsible for any transportation charges you incurred when you purchased the car. They must also cover any charges for manufacturer-installed items or manufacturer items installed by the authorized dealership. Depending on the defect, the manufacturer may not be required to pay for any non-manufacturer items that were installed in the car by you, a dealership, or any other party. Finally, the manufacturer must reimburse you for the sales tax, registration fees, licensing fees, and all of the official charges you paid when you originally bought the vehicle. In order to determine the lemon law buyback value, you can use a buyback calculator. The general California lemon law buyback formula is: Purchase price of the vehicle – Usage fee = Lemon law buyback valueUsage Fee
Once the total lemon law buyback amount has been determined, the manufacturer may be entitled to subtract a usage fee. The usage fee represents the miles of use prior to the first time the vehicle was presented for repair. To determine this fee, there is a simple formula prescribed by law, based on what the lemon law California legislature determined to be the average life of a vehicle (120,000 miles). For instance, let’s say you bought a car for $20,000. You drove it for 2,000 miles before the transmission started to show signs of faultiness. So, we will plug these numbers into the formula: (Miles Driven) / (Statutory Average Life of Vehicle) x Price You Paid for the Car = Usage Fee (2,000 miles) / (120,000 miles) x $20,000 = $333.33 If you have had multiple issues with the vehicle, the usage fee may depend on when you brought the car in for the defect that officially rules it a lemon. For example, let’s say you started having issues with the seatbelts after 1,000 miles. You brought the car in, and the manufacturer or authorized dealer fixed it. Now, after driving the car for another 2,000 miles (totaling 3,000 miles), the engine fails. After four failed attempts to fix the engine, the car is officially ruled a lemon. In this case, you may have to use 3,000 miles in the equation – not the 1,000 miles when the seatbelt issue was reported.Coverage for Incidental Damages
In addition to everything associated with the lemon law buyback amount, the manufacturer must also pay for any incidental damages under the lemon law in California. These damages refer to the costs you incurred as a direct result of the lemon vehicle’s defects and repairs. Incidental damages typically include (but are not limited to):- Towing fees.
- Rental car expenses.
- Repair costs.
- Prepayment penalties.
- Earned finance charges.
- Early termination charges.
