California Lemon Law Changes: What Consumers Need to Know

Recent changes to the Song-Beverly Consumer Warranty Act, also known as the California Lemon Law have sparked substantial debate among consumers, auto manufacturers and legal professionals.

While the law has long provided protections for consumers experiencing persistent automotive defects, recent amendments may make it more challenging for consumers to seek relief and get these dangerous cars off California roads.

What Has Changed?

The California Lemon Law has historically allowed consumers to receive a replacement vehicle or refund if their vehicle has been repeatedly repaired or has been out of service for an extended number of days for warranty defects.

However, new amendments have introduced stricter criteria for successfully bringing lemon law claims, and thereby limiting the number of successful cases.

The key changes relate to the statute of limitations for presenting a claim, the calculation of a consumer’s actual damages, and the process in which a consumer may seek civil penalty damages. 

Some of the key changes include, but are not limited to the following:

• Timeframe Restrictions: The amendments limit the timeframe in which consumers can bring a claim, potentially excluding those who experience issues later in their ownership period.  Under the changes, a consumer must present a claim within one year of the expiration of the applicable express warranty, not to exceed six years from the original date of delivery.
• Pre-Suit Notice Requirement: In order to pursue a lemon law claim that includes civil penalties, consumers must now give formal notice to the manufacturer and allow them an opportunity to resolve the dispute, adding additional steps to the claims process.
• Possession of the Vehicle: Under the new rules, consumers need to maintain possession of their vehicle for at least 30 days from when they remit the pre-suit notice and up to an additional 30 days if the manufacturer offers them a repurchase or replacement, making it more difficult for individuals who have already surrendered their car due to ongoing defects.
• Negative Equity Not Reimbursed: Consumers seeking a refund under the new law will not receive compensation for any negative equity on their vehicle that was rolled into the purchase of the lemon vehicle, meaning they won’t be reimbursed for the difference between their car’s trade-in value and what they owe on it.

The Rodriguez Case and Used Car Claims

A recent court ruling, Rodriguez v. FCA US LLC, has limited the scope of Lemon Law protections in California, particularly for used car buyers.

The ruling established that used cars are ineligible for Lemon Law protection unless the used car is a Certified Pre-Owned vehicle or a dealer demonstrator vehicle.

As a result, consumers who purchase used vehicles even with the remaining portion of the original vehicle warranties intact are now at a disadvantage when it comes to seeking relief for defects under the California Lemon Law.

Legislative Changes: Assembly Bill 1755 & Senate Bill 26

Two key bills, AB 1755 and SB 26, have been central to the recent reforms to the California Lemon Law. AB 1755 introduces substantive reforms, while SB 26 gives auto manufacturers the option to opt into these changes.

Manufacturers have until July 1, 2025, to make their initial election, which, once made, remains binding for five consecutive years.

Those who do not elect to participate by the deadline may opt in by the end of any subsequent year, with their decision applying for the following five years.

SB 26 requires manufacturers to report their election to the Arbitration Certification Program within the Department of Consumer Affairs.

By opting in, manufacturers can benefit from streamlined procedures designed to reduce the complexity and cost of lemon law disputes.

However, this creates a challenging landscape for consumers, who must navigate different rules depending on whether a manufacturer has chosen to adopt the new procedures or not.

Why Were These Changes Made?

Supporters of these lemon law reforms argue that the changes are necessary to prevent California courts from becoming oversaturated with lemon law cases, as evidenced by the significant increase in filings over the past decade.

On the other hand, consumer advocates argue that these stricter rules disproportionately harm consumers facing legitimate defects with their cars, making it harder for them to navigate and enforce their rights under the law, which could ultimately lead to more unsafe vehicles on our roads.

They argue that the reforms make it harder for consumers to get the resolution they deserve, particularly in cases where mechanical and/or technological issues persist despite repeated fixes.

The Growing Concern Over Vehicle Defects

Regardless of the legal changes, data shows that vehicle defects remain a persistent issue. As cars become more advanced with integrated technology and automation, the likelihood of defects—whether minor or significant—naturally increases. Common issues reported by consumers include:

• Malfunctions in advanced driver assistance systems (ADAS)
• Battery and charging problems in electric vehicles
• Transmission failures in certain makes and models
• Infotainment system glitches impacting vehicle functionality

While defects are inevitable as automotive technology evolves, consumer protections remain crucial. Without robust legal safeguards, car buyers may be left vulnerable to prolonged disputes with manufacturers.

Rising Vehicle Recalls

Supporting concerns over vehicle defects, recall data in recent years highlights an increasing number of issues across various manufacturers.

In 2023 alone, over 30 million vehicles were recalled in the U.S., affecting brands such as Ford, Toyota, and Tesla.

The most common recalls involved electrical system failures, brake malfunctions, and airbag defects, many of which posed serious safety risks.

Additionally, Hyundai and Kia recalled over 3 million vehicles due to fire risks associated with engine defects.

These figures indicate that despite technological advancements, quality control remains a challenge within the automotive industry.

How Can Consumers Protect Themselves?

With the new Lemon Law changes in place, vehicle owners should take proactive steps to safeguard their rights:

• Document Everything: Keep detailed records of all repairs, communications with manufacturers, and the impact of the defect on vehicle performance.
• Act Quickly: Given potential new time restrictions, filing a claim as soon as a defect arises is more important than ever.
• Understand Warranty Coverage: Knowing the specifics of a vehicle’s warranty can help consumers determine their eligibility for a claim.
• Consult an Attorney: Legal professionals specializing in Lemon Law can provide guidance on the best course of action under the revised regulations.

Consumers can now use our interactive tool to check whether their vehicle qualifies for coverage under the new changes to California’s Lemon Law.

This tool allows users to enter their car’s make, model, and defect type to determine if it meets the new criteria for protection.

Moving Forward

California Lemon Law reform represents a shift in how vehicle defect claims are handled. While aimed at curbing excessive litigation, these changes could create hurdles for consumers seeking justice.

Understanding these modifications and taking proactive measures will be essential for those who find themselves with a faulty vehicle.

If you’re unsure whether your situation qualifies, it’s important to consult a California lemon law attorney who can help you understand your rights and guide you through the revised claims process.