California Used Car Lemon Law Questions

Does the California Lemon Law still protect used cars? The answer is no, with only a few exceptions.

For a long time, the California Lemon Law used to protect used vehicles that were purchased from a dealership with an existing manufacturer’s warranty. However, recent changes to California’s Lemon Law has upended this long-existing protection. It was one of the few states to do so.

In this guide, we will explain how used car lemon law protections have changed, what you need to know if you’re facing issues with your vehicle that the dealership cannot seem to fix.

Does the Lemon Law Apply to Used Cars?

Many state lemon laws offer varying protections to new motor vehicles, as long as they were bought with warranties from the manufacturer. However, not every state lemon law offers similar protections to used vehicle owners.

The common question for California drivers is “Does the lemon law apply to used cars?” The answer is no, unless the vehicle was purchased Certified Pre-Owned.

Certified pre-owned vehicles are a specific category of used vehicle. They had been inspected by the manufacturer before being resold to consumers. Vehicles labeled as “Certified Pre-Owned” need conform to specific guidelines as set by the Car Buyer’s Bill of Rights.

For a certified pre-owned vehicle to be considered a lemon, it has to have been sold with a manufacturer-back warranty and has experienced significant manufacturing defects.

Table of Contents

• Guidelines on Certified Pre-Owned Cars
• California Lemon Law for Certified Pre-Owned Cars
• Which CPO Cars Qualify For California Lemon Law
• Businesses and California CPO Car Lemon Law
• CPO Cars and California Lemon Law For Military
• Time Limit For California CPO Car Lemon Law
• Number Of Required Repair Attempts
• Warranties for the California Lemon Law
• What Should I Do If My CPO Car is a Lemon?
• Consult a California Lemon Law Attorney

Guidelines on Certified Pre-Owned Cars

People buy certified pre-owned cars because of certain guarantees that the vehicle meets specific requirements. For example, certified pre-owned cars are supposed to undergo rigorous inspection and are sold with warranties back by the auto manufacturer. However, this does not guarantee that a certified pre-owned car won’t be a lemon.

Certification programs aren’t identical across auto manufacturers. However, there are certain rules that auto manufacturers must follow if they want to call their used cars “certified pre-owned.”

California Vehicle Code Section 11713.18 states that dealerships cannot advertise used vehicles as “Certified Pre-Owned” if:

• The odometer is wrong.
• The dealer knows or should have known that the vehicle is a lemon law buyback.
• The vehicle has a title that indicates significant vehicle damage, such as flood titles or salvage titles.
• The vehicle has frame damage or sustained damage from car crashes, fires or floods.
• The vehicle wasn’t properly inspected.
• The vehicle is being sold “as is” or “with all faults.”

A manufacturer’s certification program cannot include vehicles that break these rules. However, Certified Pre-Owned vehicles will sometimes be sold with manufacturing defects, despite the manufacturer’s promises.

California Lemon Law for Certified Pre-Owned Cars

The California Lemon Law considers a CPO car to be a lemon if it has a problem that affects its use, value or safety, the problem is covered under the manufacturer’s warranty, and the authorized dealership or repair facility could not repair the vehicle within a reasonable number of repair attempts.

Under the California Lemon Law, the auto manufacturer has an affirmative duty to ensure that your vehicle conforms to the terms of its express warranty. In the event that your vehicle cannot be repaired within a reasonable number of repair attempts, the auto manufacturer has the affirmative duty to offer a replacement car or a refund of what you paid for the vehicle, minus the good miles you got out of it.

If your car is found to be a lemon, you may be eligible for a replacement vehicle that is substantially identical to your current vehicle model, or for a repurchase of your vehicle. The amount offered to repurchase your vehicle is determined by what you paid for the car, minus an amount that is based on the “good miles” driven before the defect first surfaced. You will also be compensated for sales or use tax, license fees, registration fees and/or other fees associated with your CPO car purchase.

You may get certain out-of-pocket expenses reimbursed, such as rental fees, towing costs, or out-of-pocket repair costs. However, this depends on the circumstances of your CPO car lemon law case.

Which CPO Cars Qualify For California Car Lemon Law?

A certified pre-owned car is protected under the California Lemon Law if it fits the following criteria:

• The car was bought or leased with the manufacturer’s original warranty.
• The car was purchased by a California resident from a licensed dealership in California.
• The car was set aside for personal, family or household use.
• The car has a warrantable defect that surfaced during the warranty period.

In addition, the California lemon law covers consumers who purchased trucks, vans, chassis or chassis cabs of motor homes, and other motor vehicles.

The California Lemon Law does not cover the following cars:

• CPO cars set aside for business*
• CPO cars purchased out of state*
• CPO cars purchased “as is”, with no warranty, or with an expired warranty.
• CPO cars bought from private sales or auctions.
• CPO cars where problems were caused by:
  • Abuse, misuse or lack of maintenance, or,
  • A vehicular accident or a natural disaster.
• Portions of a used motorhome used primarily for human habitation
• CPO off highway motor vehicles not registered under the Vehicle Code

*Certain exceptions exist for CPO cars, trucks, vans or other vehicles that were set aside for business use or that were purchased out of state. California Lemon Law may benefit certain small businesses, but not accommodate large fleets of vehicles. While California civilians may only benefit if they purchased CPO vehicles in state, members of the Armed Forces benefit from a modified criteria. Learn more about these exceptions for lemon vehicles.

Businesses and California CPO Car Lemon Law

The California Lemon Law mostly covers vehicles set aside for personal, family or household use. However, the California Lemon Law also protects certain new and certified pre-owned vehicles set aside for business use.

A certified pre-owned car set aside for business may qualify for the California Lemon Law if:

• The car was purchased with an active warranty from the auto manufacturer.
• The car has a gross vehicle weight under 10,000 pounds.
• The business to which it is registered has no more than five vehicles registered in California.
• The car has a defect that affects its use, safety or value.
• The dealership or repair shop could not fix the car’s defect within a reasonable number of repair attempts.

CPO Cars and California Lemon Law for Military

The California Lemon Law protects California residents who bought or leased their vehicles from authorized dealerships in California. For the most part, the California Lemon Law does not cover vehicles purchased out of state. However, it provides an exception for Members of the Armed Forces.

If you are serving in the Armed Forces, your CPO car may be covered by the California Lemon Law if:

• The car was purchased with an express warranty from an auto manufacturer that sells vehicles in California,
• The car has a defect that affects its use, safety or value,
• The car dealership or repair shop could not fix the used car within a reasonable number of repair attempts, and;
• You were stationed in California EITHER when you purchased the vehicle OR when you filed the lemon law claim.

Time Limit for California CPO Car Lemon Law

Lemon law protections for used cars were not the only thing to change. Under the new changes to the California Lemon Law, the time limit for new and certified pre-owned vehicle claims is one year after the expiration date of the applicable warranty.

If you are not sure which of your manufacturer-backed warranties apply to your potential case, consult with a lemon law attorney to discuss your options.

Number of Required Repair Attempts

The California CPO Car Lemon Law does not set a specific number of repairs as a requirement for your car to be considered a lemon. Instead, it states that a “reasonable number” of repairs are required – the rest is determined by the specific facts of your case.

While there is no set number that is “reasonable,” a specific section of the California Lemon Law does offer a rough guideline. It sets criteria under which your CPO car may be presumed a lemon. That does not mean you are automatically eligible for lemon law restitution. It just means that the burden of proof shifts onto the auto manufacturer if and when you decide to pursue a lemon law claim.

Your CPO car may be presumed if the following occurs within 18 months or 18,000 miles (whichever comes first):

• Four or more repair attempts were made for a defect impacting use, value or safety,
• Two or more repair attempts were made for a defect that can cause death or serious bodily injury, or,
• A defect results in your used car being stuck in the repair shop for more than 30 cumulative days.

However, this presumption only takes effect if you went through an arbitration process and received an unfavorable outcome. Car buyers should keep in mind that these criteria offer a rough benchmark, not a hard-fast rule. Many California lemon law claims for CPO cars do not strictly fit these criteria, and the CPO car owners or lessees were still able to obtain a vehicle replacement or lemon law buyback.

Warranties for the California Lemon Law

New and certified pre-owned vehicles are typically sold with two warranties: a powertrain warranty and a bumper-to-bumper warranty. Check your owner’s guide for time and mileage limits on any warranty accompanying your vehicle.

Though used car owners are not protected by the California Lemon Law, they still benefit from other legal protections. Buy-here-pay-here dealers are legally required to sell used cars with a written warranty with a minimum of 30 days after the purchase or 1,000 miles after what is shown on the contract, whichever happens first. However, most express warranties on used cars are far more generous.

Sometimes, dealerships may try to offer so-called “extended warranties.” However, these are essentially service contracts sold by car dealers, and do not qualify under the California Lemon Law.

What Should I Do if My CPO Car is a Lemon?

If you suspect that your CPO car is a lemon, follow these steps:

1. If you haven’t already, take your car to the dealership for repairs. Make sure that, at the end of each repair visit, you receive a repair order. This document will have an itemized list of the repairs performed on your car.
2. Get your documents in order. You will need your repair orders, your vehicle’s warranty document and any documents related to your ownership or lease of the vehicle. If you communicated with the dealer or auto manufacturer in any way, keep records of these communications (emails or notes).
3. Remember: time is of the essence. Once you discover the defect in your car, you have one year after the expiration date of the applicable warranty to file a claim. Don’t wait to get your repairs and documents in order. In addition, check the terms of your warranty. An express warranty will state specific limits based on mileage and time of ownership of your car.

If you’re not sure what to do next, contact a lemon law firm for further guidance.

Consult a California Lemon Law Attorney

Lemon laws for CPO cars have certain nuances that you shouldn’t navigate alone. Lemon Law Help by Knight Law Group can help lemon owners get rid of their defective cars and get their money back.

It starts with a free consultation. During your first phone call with us, you can expect to be asked about your vehicle model, vehicle problems, the time you’ve owned or leased the vehicle and the repairs you’ve gotten on it. Once the consultation is done, you may be asked to submit repair orders and other documents for additional review. Keep in mind that none of our services cost you anything out of pocket. We only get paid if you win your car lemon law claim; the California Lemon Law requires the auto manufacturer to pay your attorney’s fees and costs.

To start the lemon law process for your lemon CPO car, complete the consultation form below or call us at 877-217-7676.

Lemon Law Help by Knight Law Group is an automotive lemon law firm that exclusively practices in California, with offices in Los Angeles, San Francisco, Sacramento and Orange County. If you are a California resident who purchased or leased a defective vehicle from a licensed dealership in California, we may be able to help you get rid of your potential lemon and recover significant cash compensation. Model year restrictions apply: 2020–Present vehicle models only.

However, we cannot help those who reside outside of California or purchased their vehicle outside of California unless they are active duty members of the Armed Forces, nor will we be able to refer those to a lemon law firm in their states.

To learn more about the California Lemon Law and your legal rights, visit our guide on the California Lemon Law for more information.