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California Supreme Court Crushes Used Car Lemon Law Protections
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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.
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
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.
