California Supreme Court Crushes Used Car Lemon Law Protections

California Used Car Lemon Law Changes Impact Millions of Consumers

The California Supreme Court's decision removes crucial consumer protections for used car buyers with active manufacturer warranties, leaving 3.5 million annual purchasers without traditional Lemon Law remedies. This landmark ruling means manufacturers can now legally refuse to replace or refund defective used vehicles, forcing consumers to seek alternative legal pathways for resolution.

by
November 22, 2024

In a landmark decision that will impact millions of California consumers, the state’s Supreme Court has effectively gutted Lemon Law protections for used vehicles with remaining manufacturer warranties.

Key Ruling Details
  • Only new cars with warranties originally issued at sale now qualify for Lemon Law protections
  • 3.5 million used cars sold in California in 2024 will lose refund-or-replace remedies
  • Ruling stems from a case involving a used Dodge Ram

Legal Background

 The case centered on a used 2011 Dodge Ram purchased in 2013 with:

  • 55,444 miles on the odometer
  • Active five-year/100,000-mile powertrain warranty
  • Persistent engine issues not resolved after six repair attempts

Implications for Consumers
  • Manufacturers can now refuse to replace or refund defective used vehicles
  • Buyers with active manufacturer warranties have lost critical legal protections
  • Estimated impact on approximately 3.5 million used car transactions annually

Consumer Advocacy Response

 Prominent consumer rights advocates have strongly criticized the ruling:

  • Manufacturers can now ignore warranty repair requests
  • Consumers face potentially massive unexpected repair bills
  • Calls for legislative intervention to restore protections

Remaining Legal Recourse

 While Lemon Law protections have been significantly reduced, consumers may still have limited options:

  • California Uniform Commercial Code claims
  • Federal Magnuson-Moss Warranty Act
  • Consumer Legal Remedies Act
  • Claims against dealerships and retail sellers

Statistical Context
  • Lemon law cases in California increased from 15,000 in 2022 to over 22,000 in 2023
  • Represents nearly 50% growth in filings
  • Comprises approximately 10% of all civil court filings in the state

Potential Legislative Response

 Consumer groups are urging the California Legislature to:

  • Redefine “new motor vehicle” to include used vehicles with remaining warranties
  • Create specific protections for used car buyers
  • Mandate warranty coverage for vehicles sold above certain price thresholds

Recommendations for Used Car Buyers
  • Obtain comprehensive vehicle history reports
  • Thoroughly inspect vehicles before purchase
  • Consider purchasing additional extended warranties
  • Meticulously document all repair attempts and communications
  • Consult legal professionals specializing in automotive consumer protection

The ruling represents a significant shift in consumer protection, potentially leaving millions of California used car buyers vulnerable to unresolved vehicle defects.

Also See

California’s Plastic Bag Ban 2.0: What You Need to Know About SB 1053

Brain Data Not for Sale in California: How SB 1223 Safeguards Your Neural Privacy

$50M California Gas Settlement: Who’s Eligible & How to File Your Claim

 

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