The California Lemon Law Got Squeezed this Year… a Sour Deal for Consumers

For Californians who end up with a lemon vehicle, 2025 has presented a whole new set of challenges.

As of January 1^st, 2025, Assembly Bill 1755 has made it harder for consumers to pursue lemon law claims narrowing the time for bringing a lemon law claim.

This allows auto manufacturers to deduct for negative equity, and requiring lemon owners to provide specific written notice of detailed information in order to have the full protection of the lemon law.

For the past 54 years, California consumers benefited from having one of the strongest lemon laws in the nation. 

Not anymore… This all changed once AB1755 hastily passed through a ‘gut-and-amend’ process during the last legislative session of 2024. 

These changes undermine decades of consumer protections, making it harder for Californians to seek recourse for defective vehicles.

According to Rosemary Shahan, President of Consumers for Auto Reliability and Safety (CARS), “This is a betrayal of the interests of millions of Californians who pay thousands of dollars extra to purchase vehicles with an express warranty from the manufacturer in the reasonable expectation that if serious problems arise, they will either be able to get their vehicle repaired without having to pay out of pocket, or they will be able to obtain a refund or replacement vehicle. That has been the law in California since 1970, when then-Governor Reagan signed the Song-Beverly Consumer Warranty Act into law.”

Further complicating the lemon law is Senate Bill 26, which makes the new lemon law reforms voluntary for automakers. Under SB26, auto manufacturers get the option to elect into the amended lemon law or not.

With both amendments, Californians are now faced with a labyrinth of confusing rules that apply differently to different auto manufacturers, stricter timelines, and confusing notice requirements leaving car consumers with a tough time figuring out what to do if they end up with a lemon car.

Adding to the confusion, California consumers took another major hit late last year when the Supreme Court ruled that the California Lemon Law no longer covers used cars – even if these cars are still covered under the original new-vehicle warranty.

This decision dealt a serious blow further stripping consumer protections for California consumers who buy used cars that turn out to be a lemon.

The recent changes to the California Lemon Law were supposedly made to ease court congestion caused by a rise in lemon law cases.

This has sparked speculation – are more consumers simply aware of their rights, are more defective vehicles entering into the stream of commerce, perhaps a combination of both?

The data tells a different story—cars are becoming less reliable, not more. With recalls and consumer complaints surging over the past decade, defective vehicles are more common than ever.

Instead of weakening consumer protections, lawmakers should strengthen them. This article examines the rise in vehicle defects and why rolling back the California Lemon Law will end up harming California consumers.

The Rising Trend of Vehicle Recalls

Over the past two decades, vehicle recalls have surged, raising concerns about manufacturing quality and safety.

In 2010, there were 647 recalls affecting nearly 19.7 million vehicles. By 2020, that number had climbed to 784 recalls impacting over 31.8 million vehicles. In 2023, recalls reached 894, affecting nearly 35 million vehicles.

This dramatic increase suggests that manufacturing defects and safety issues are becoming more prevalent rather than improving.

Certain automakers consistently rank among those with the highest recall rates. Between 2010 and 2024, Ford issued 569 recalls, Chrysler issued 545 recalls, and General Motors issued 468 recalls for a variety of safety and drivability concerns.

Despite the growing number of vehicle recalls, laws like AB1755 and SB26 weaken consumer rights instead of strengthening protections for vehicle owners, making it harder for individuals to hold manufacturers accountable for selling defective vehicles – ultimately leading to more dangerous vehicles on California roads.

Rise in Consumer Complaints: Evidence of Declining Vehicle Quality

Since 2003, automotive recalls have surged, with defects becoming more widespread despite technological advancement. Instead of improving vehicle quality, these issues are increasingly putting consumer at risk on the road.

Over the past decade, consumer complaints regarding vehicle defects have fluctuated, pointing to ongoing concerns about vehicle quality and safety.

In 2012, NHTSA recorded 41,912 complaints about potential safety defects. By 2019, the number of complaints surged, reaching 75,267. This marked an approximate 80% increase, highlighting a significant shift in consumer complaints.

In 2024, the automotive industry saw a dramatic uptick in vehicle recalls. This increase in recalls mirrors the increase in consumer complaints, which often highlight persistent quality issues.

Recent data from NHTSA and platforms like CarComplaints.com reveal troubling patterns in the types of issues reported by consumers who own or lease newer vehicles. Some of the most frequent complaints include:

• Engine Problems: Issues like stalling, excessive oil consumption, and sudden shutdowns are commonly reported.
• Electrical System Failures: Malfunctions in infotainment systems, faulty wiring, and battery drain are among the top concerns.
• Transmission Issues: Many consumers report rough shifting, transmission failures, and hesitation during acceleration.

Additionally, certain vehicle components may also show a higher propensity for failure:

• Airbags: Despite the infamous Takata airbag recall, there continue to be complaints about airbag malfunctions, including failure to deploy during accidents.
• Braking Systems: Reports of brake failures, particularly issues with anti-lock braking systems (ABS) and premature wear, are on the rise.
• Fuel Systems: Complaints related to fuel leaks, faulty fuel pumps, and inaccurate fuel gauge readings have become more common.

Complaints are rising, but so is the severity of the issues reported. More consumers report failures in critical safety systems like steering and brakes—issues that can lead to serious accidents and bodily injury.

Concerns are also growing over fire hazards from electrical short circuits and fuel leaks, both with potentially catastrophic consequences.

The surge in consumer complaints, especially those involving safety-critical failures, highlights the need for stronger—not weaker—protections.

Yet, laws like AB1755 and SB26, along with the recent ruling stripping used cars of lemon law coverage, do the opposite, making it harder for consumers to fight back against defective vehicles.

To ensure safety and hold manufacturers accountable, consumer rights should be strengthened, not weakened.

How Defects Impact Consumers

The rise in vehicle defects has serious consequences, affecting consumers in several key areas:

• Financial Burdens: Vehicles plagued by defects often require frequent and costly repairs in addition to significant decline in resale values, leaving consumers with potentially significant and unexpected financial loss.
• Safety Risks: Faulty components in critical safety systems such as brakes, engine, airbags, and steering can lead to dangerous malfunctions. For example, defective brake pads or failing hydraulics can result in brake failure, significantly increasing the risk of accidents.
• Legal Frustrations: Pursuing legal action for defective vehicles has become increasingly complicated. Legislative changes, such as AB1755 and SB6, have made it harder for consumers to hold manufacturers accountable, reducing their ability to seek refunds or replacements.

Why Manufacturers Aren’t Fixing the Problem

Several factors contribute to the ongoing surge in vehicle defects:

• Cost-Cutting Measures: In an effort to maximize profits, some automakers reduce production costs, often at the expense of quality control and material integrity.
• Rushed Production Timelines: Competitive pressure to release new models quickly can lead to inadequate testing, allowing defective vehicles to reach the market.
• Lack of Accountability: Efforts to weaken regulatory oversight have made it easier for manufacturers to avoid responsibility for defects.

The Need for Reform

Stronger consumer protection laws, stricter oversight, and enhanced quality control measures are essential to reversing this trend.

Without meaningful change, consumers will continue to bear the financial burden and safety risks of defective vehicles.

The Lemon Law Should Be Stronger, Not Weaker

Stronger lemon laws and consumer protections result in more vehicles being repurchased or replaced by the auto manufacturers thereby ensuring consumers receive fair resolutions when their vehicles fail to meet minimum standards for quality and performance.

As automotive defects continue to rise, the lemon laws should evolve to reflect these growing issues and to ensure manufacturers stay accountable for problematic vehicles and remove these from our roads.

Statistics on Lemon Law cases may reveal why U.S. automakers have pushed for changes to these regulations. U.S. car companies face a significantly higher number of Lemon Law cases in California compared to their foreign counterparts.

State data highlights significant disparities among manufacturers, with some brands more prone to defects than others.

For instance, General Motors faces a Lemon Law claim for approximately every 78 vehicles sold, while Jaguar Land Rover is approximately 1 case per 83 vehicles and Fiat Chrysler Automobiles is approximately 1 case per 107.

In contrast, manufacturers like Toyota face approximately 1 lemon law case for 2,029 vehicles and Mazda is approximately 1 case per 1,571 vehicles.

These two auto manufacturers have far fewer claims, suggesting either better reliability or quicker resolution of consumer complaints before legal action becomes necessary.

The fact that some manufacturers consistently rank high in Lemon Law claims indicates potential systemic quality control issues.

Unfortunately, consumers often bear the burden of fighting for fair resolutions. Without strong legal protections, those purchasing vehicles from high-claim auto brands may be left with expensive, unreliable, and even unsafe cars.

The trend also exposes major gaps in consumer recourse. While some manufacturers might be more aggressive in disputing claims or offering pre-litigation settlements, others may simply build better vehicles.

However, without robust Lemon Law protections, consumers of frequently defective brands may struggle to secure a lemon law repurchase or replacement, ultimately absorbing repair costs for problems that should have been resolved.

Given this landscape, lawmakers must reinforce Lemon Laws to ensure they reflect the realities of defect trends.

Strengthening these protections would pressure manufacturers to improve quality control while giving consumers the legal backing needed to challenge persistent defects.

With clear data showing which brands are most problematic, regulatory measures should focus on making the lemon law repurchase and replacement process more fair, faster, and more accessible—especially for those purchasing vehicles from auto manufacturers with high defect rates.

Strengthening consumer protections can help ensure that vehicle owners are not left without recourse when manufacturers do not deliver on their promises.

As automotive defect rates and issues continue to climb, we must make sure that California consumers continue to have access to dependable lemon law recourse they need.