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Q. Who is covered under the California lemon laws?

A. The California lemon laws provide protection for consumers who lease or buy new motor
vehicles, including cars, trucks, SUV’s, some motorcycles, RV’s, and the chassis portion of motor homes.

Q. Are the California lemon laws the same as the Song-Beverly Consumer Warranty Act?

A. Yes. The Song-Beverly Consumer Warranty Act is commonly referred to as the California lemon laws.

Q. Under what circumstances do the California lemon laws apply?

A. If the manufacturer or an authorized dealer is unable to repair a new motor vehicle because
of a substantial manufacturing defect related to safety, value, or use after a reasonable number
of repair attempts, the manufacturer is required to replace the vehicle or return the purchase price to the lessee or buyer.

Q. If I am entitled to have my defective vehicle repurchased how is the amount of my reimbursement calculated?

A. The price to be refunded includes the price paid for the vehicle, including down payment and
monthly loan or lease payments. It also includes reimbursement for manufacturer installed items
and transportation but does not include the price paid for non-manufacturer items installed by the dealer or a third-party.

Q. Am I also entitled to be reimbursed for the other miscellaneous costs of the transaction?

A. Yes, the manufacturer is also responsible for sales tax, license, registration, and other incidental
costs including finance charges, and repair, towing, and rental car costs related to the defect for
which the vehicle is being repurchased.

Q. What if I want a replacement instead of a refund?

A. The decision to select either a replacement or refund is entirely up to the consumer. The
replacement procedure is considerably more cumbersome, however, and may take much longer.

Q. Does this mean that if the manufacturer repurchases my vehicle I am entitled to recover all of my costs?

A. No, not entirely. The consumer is obviously not entitled to keep any rebates nor any negative
equity that may have been rolled into the deal. Likewise, any additions made by the dealer such
as accessories, service contracts, gap insurance, etc., will be deducted from the reimbursement.

Q. Will I have to pay for the mileage I put on the vehicle before it was repurchased?

A. Yes, but only to a limited extent. The manufacturer may deduct for the use of the vehicle up
to the first major repair attempt of the defect for which the vehicle is being repurchased or
replaced.

Q. Is there a formula used to calculate the amount of the mileage deduction?

A. Yes. The California legislature determined that the fairest method for determining the usage
fee deduction is to multiply the actual price of the vehicle by a fraction having as its denominator
120,000 and as its numerator the number of miles traveled by the vehicle before it was brought
in for the first repair attempt. For example, if the car had traveled 12,000 miles before the first repair attempt for a substantial problem relating to safety, value, or use, the deduction would be
10% (12,000/120,000 = 10%) of the purchase price.

Q. You said earlier that if the vehicle cannot be repaired after a reasonable number of repair attempts, the manufacturer is required to repurchase or replace it. What is a “reasonable number of repair attempts”?

A. That depends on the circumstances including the seriousness of the defect. Two repair attempts may be reasonable for serious, life-threatening, safety defects. Otherwise four attempts for nonlife-threatening, but substantial, defects are considered to be a “reasonable” number

Q. But what if my vehicle has been out of service in the hands of a dealer, for less than the number of “reasonable” repair attempts, but for many days?

A. In that case if the vehicle is out of service for a cumulative total of more than 30 days during
the first 18 months after the consumer received delivery of the vehicle and within the first 18,000
miles on the odometer, whichever occurs first, then it is the same as if a reasonable number of
repair attempts had been made.

Q. Does this mean that if the vehicle has been in for a “reasonable” number of repair attempts, or in excess of 30 days out of service, that the vehicle will automatically be repurchased?

A. No. Meeting these requirements only establishes the presumption that the vehicle is a lemon.
It is not an absolute rule and the manufacturer may argue that it has not had a reasonable number of opportunities to repair the vehicle.

Q. Do I need to keep copies of my repair orders and other documents?

A. Yes, it is vitally important that you keep copies of all repair orders and correspondence. These may be the only documents that the manufacturer will rely upon to make a decision whether to repurchase your vehicle.

Q. What about arbitration?

A. If the manufacturer maintains a state-certified arbitration program, the consumer may submit
the dispute to arbitration, but is not required to do so. Arbitration is a high risk alternative for
consumers and should not be the first choice for resolution of your problem.

Q. Does the California lemon law apply to all new vehicles?

A. The law applies to a new motor vehicle, with a gross vehicle weight under 10,000 pounds, that
is bought in California, primarily for personal, family or household purposes, or by a business to
which not more than five motor vehicles are registered in California.

Q. What is a new motor vehicle?

A. A "new motor vehicle" includes cars, trucks, SUV’s, some motorcycles, RV’s, and the chassis
portion of motor homes. Boats are also protected but under a different provision of the California
law. It also includes demonstrators and any motor vehicle sold with a manufacturer's new car
warranty, but does not include exclusively off-road vehicles.

Q. Are used vehicles also covered under the California lemon law?

A. Yes, but only if the used vehicle, when it was purchased, had some portion of the
manufacturer’s original new-car warranty still in effect at the time of purchase or lease. A service
contract is not the same as the manufacturer’s original new-car warranty.

Q. Does the Song-Beverly Consumer Warranty Act provide coverage for other products besides vehicles?

A. Yes. Although the provisions discussed above apply to new, and some used, motor vehicles,
Song-Beverly has many general rules that apply to any consumer product sold in the state of
California with an express written warranty

Q: is there a time limit within which I should file a demand that my vehicle be repurchased if I believe it to be a lemon?

A. Yes. Although there is a four-year statute of limitations within which to bring a law suit for
breach of a written warranty, you should act promptly to try to resolve your problem without
having to file a lawsuit. Lawsuits are time-consuming and unpleasant, and may be costly.

Contents © 2010 the Law Offices of Delsack & Assoc., P.C.