It’s estimated that roughly 150,000 defective vehicles are sold every year. When we buy a car, we assume that it works flawlessly – but that’s not always the case.
Lemon laws – or consumer warranty laws – exist across the country to protect consumers in these unfortunate situations. If the vehicle in question has met the state’s qualifications of a “lemon”, the manufacturer is required to buy it back from the consumer and reimburse them for related costs incurred.
In the Golden State, this process is known as California buyback lemon law.
But what happens to all these defective cars AFTER vehicle manufacturers buy them back?
Believe it or not, most are put back on the sales floor – but certain requirements must be met under California’s lemon law. In this post, we’re going to explain the details.
What is a “Lemon” Vehicle in California?
A “lemon” is a vehicle that was sold with manufacturer defects – and has met several criteria based on the state’s law. In California, lemon law is referred to as the Song-Beverly Consumer Warranty Act. For a vehicle to be eligible for the lemon law buyback process, it needs to meet the following:
- The defect was reported within the terms of the original or dealer warranty; and
- The defect substantially compromises the vehicle’s safety, functionality, and/or value; and
- The defect was not caused by driver error; and
- The manufacturer’s certified repair facility has been given a reasonable number of attempts to fix the defect, of which were unsuccessful; or
- The defective vehicle has been out of service for 30 or more total days due to repairs.
To qualify for California buyback lemon law, the consumer must have clear and organized documentation to prove their vehicle meets the criteria above. From here, they may file a lemon law claim with the help of an experienced lemon law attorney.
What Happens with Lemon Law Cars?
Fast-forwarding through the California buyback lemon law process – assuming the qualifications have been met and the manufacturer has bought back the defective vehicle from the consumer.
What’s next?
In some cases, the manufacturer will try to repair the defect. A vehicle may be ruled a lemon after as few as one failed repair attempt. Once the manufacturer buys it back, they can make as many repair attempts as needed to get the car back in good shape.
But in most cases, the manufacturer will turn around and try to sell the lemon law buyback vehicles again – defects and all. It’s not as shady as it sounds.
In California, there are several requirements with manufacturer buyback cars for sale.
Manufacturer Requirements
If a manufacturer buys back a vehicle – and attempts to resell it – it must do the following:
- Notate that the vehicle is a lemon law buyback on the title and registration certificate/
- Update the vehicle’s title to the manufacturer’s name
- Place a decal on the vehicle reading “lemon law buyback” on the left door frame – or the primary entrance to the vehicle.
In other words, it must be blatantly obvious that the vehicle is a buyback when they put it up for sale.
Dealership Requirements
For lemon law buybacks sold at dealerships, the dealer must perform the following:
- Provide a statement that the vehicle’s title is marked as a California buyback lemon law with proper notation
- Provide a description of each vehicle defect reported by the vehicle’s original buyer
- Explain the results of the all repair attempts made in accordance with the defects reported by the original buyer
All this information must be backed with clear documentation.
Should I Buy a Lemon Law Buyback Car?
Now, manufacturer buyback cars for sale are not inherently bad. In fact, people knowingly buy lemon cars all the time.
But why would anyone want to buy a defective vehicle?
There are many reasons to buy a lemon law buyback vehicle.
These vehicles are typically sold at a significant discount by the manufacturer. Additionally, just because the manufacturer’s repair facility could not repair the defect doesn’t mean no one else can. Most people who purchase lemons are willing to put in the time and money to make sure the defects are fixed.
If everything goes to plan, the lemon vehicle (plus repair costs) end up being much cheaper than the retail price.
Now, I cannot emphasize enough that this is best case scenario.
If you’re wondering “should I buy a lemon buyback car”, the best I can tell you as an experienced California lemon law attorney is: do so at your own risk.
It’s very possible the defect persists and the vehicle turns into a money pit.
Any Questions About What Happens with Lemon Law Cars?
Purchasing a lemon law buyback is a risky move. But fortunately, you won’t likely do so blindly. Manufacturer buyback cars for sale must meet certain criteria to be put back on the sales floor.
If you’re considering purchasing a lemon buyback and have any questions, my team at Cline APC is happy to answer them. We’ve been helping California consumers pursue successful lemon law claims for many years and are here to help you understand the California lemon law process and protect your best interests. Call our office at 888-982-6915 or send an email to info@clineapc.com.
