When shopping for a used car, you may research a vehicle’s history and come across several titles. One of those titles you may come across is “lemon law buyback.” This refers to a vehicle that was previously deemed defective (or a “lemon”) and repurchased by the manufacturer. Vehicles labeled “lemon law buyback” may be sold at a discounted price, and manufacturers are required to repair these repurchased vehicles to warranty before reselling them.
The question is, should you consider buying a lemon law buyback? The discount may be tempting, but in this blog post, we will discuss the downsides and risks to purchasing a vehicle branded “lemon law buyback.”
Table of Contents
- Con 1: Potential Mechanical Issues
- Con 2: Resale Value
- Con 3: Having to Go Through a Lemon Law Claim
Lemon law buybacks are required by law to be repaired so that they conform to the terms of the auto manufacturer warranties. On top of that, many lemon law buybacks in California are sold with a manufacturer’s warranty. However, even extensive repairs do not completely eliminate the risk of mechanical problems occurring in the vehicle. You may end up spending more on repairs than you would on a used car that had not been branded a lemon.
The appeal of a “lemon law buyback” is the discounted price, plus the assumption that the manufacturer managed to repair it to conform to warranty. However, the risks posed by lemon law buybacks means that they will have lower resale value than non-lemon used cars. This can make it harder to recoup your investment if you choose to sell the vehicle later.
Considering the risk of mechanical problems, purchasing a lemon law buyback may mean having to go through a lemon law claim.
Why? It’s simple: there’s a good chance that the manufacturer may not have completely fixed the problems that made that vehicle a lemon in the first place. They are supposed to fix the vehicle problems completely and sell it with a warranty. If problems arise in that vehicle during the warranty period, you can take it to your local dealership to get it repaired. However, if the auto manufacturer or its dealerships cannot make the vehicle conform to warranty during the warranty period, that vehicle may be – you guessed it – a lemon.
If that vehicle is still a lemon, you may have to pursue a lemon law claim against the auto manufacturer to get a replacement vehicle or your money back.
Don’t Buy A Lemon Law Buyback
The disclosure requirement in the California Lemon Law exists for a reason. This requirement within the California Lemon Law is called the Automotive Consumer Notification Act. It requires an auto manufacturer to disclose the year, make and model of the vehicle, the Vehicle Identification Number, the nature of the defect reported by the buyer, and the repairs made in attempt to correct the vehicle defect.
This requirement exists so that auto manufacturers cannot easily resell lemon vehicles without consumer knowledge. The more you know going into a vehicle purchase, the better.
However, some lemon vehicles manage to fall under the radar until an owner or lessee has to deal with the vehicle defects. If your vehicle has a defect that appeared during the warranty period and it seemingly cannot be repaired, consult with a lemon law attorney today at (877) 222-2222.
Lemon Law Help by Knight Law Group is an automotive lemon law firm that exclusively practices in California. 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: 2016–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 California Lemon Law Guide for more information.