California Lemon Law and Motor Vehicle Warranty

The difference between the lemon law and motor vehicle warranty lies in their scope and purpose. The lemon law is a legal protection that covers consumers who purchase a defective vehicle, ensuring that they are entitled to a refund or replacement if the vehicle has persistent issues that hinder its safety or function.

A vehicle warranty is a contractual agreement provided by the manufacturer or dealer that outlines the terms and conditions for repairs and maintenance of the vehicle within a specified period. An express warranty is a seller’s promise or guarantee that a buyer relies on when they purchase an item. Under the Magnuson-Moss Warranty Act (a federal law that governs consumer product warranties), a company must provide a written express warranty.

Repairs covered by an Extended Service Plan — also known as an extended warranty or vehicle service contract (VSC) — do not count as warranty repairs under the California Lemon Law.

While the lemon law is a legislative safeguard enforced by the government to protect consumers, a vehicle warranty is a voluntary assurance offered by the manufacturer or dealer to build consumer trust and confidence in their products.

Your Rights Under State and Federal Law

A purchaser or lessee of a motor vehicle has various rights under both state and federal law if the vehicle does not perform as provided under an express warranty. An express warranty is a seller’s promise or guarantee that a buyer relies on when they purchase an item. Under the Magnuson-Moss Warranty Act (a federal law that governs consumer product warranties), a company must provide a written express warranty. Passed by Congress in 1975 – Section 102(c), 15 U.S.C. 2302(c), the Magnuson-Moss Warranty Act (MMWA) prevents manufacturers from using disclaimers on warranties in an unfair or misleading manner.

Repairs covered by an Extended Service Plan — also known as an extended warranty or vehicle service contract (VSC) — do not count as warranty repairs under the California Lemon Law.

Oftentimes consumers find the need to make full use of the rights provided to them under the Song-Beverly Consumer Warranty Act and what is popularly known as the “Lemon Law.” Because these laws are complex, you should consult with us before you take action on your own — either against the dealer you purchased your vehicle from or the manufacturer — so that we can best advise you of your rights under the particular circumstances of your case.

Complicated laws and teams of attorneys representing the auto manufacturers do not mean that you are stuck with a lemon. As Lemon Law experts, we are well versed in all of the ways auto manufacturers try to get out of paying the compensation that you legally have a right to.

Our services are always free to the consumer.

What You’re Entitled to Under the California Lemon Law

The California Lemon Law provides protection for consumers who lease or buy new motor vehicles. The law requires that if the manufacturer or its representative (an authorized dealership) is unable to repair your vehicle to meet the terms of an express written warranty after a reasonable number of repair attempts, and the defect substantially impairs your use, value, or safety, the manufacturer is required to replace the vehicle or return the purchase price to the lessee or buyer. The law only applies if the defect was caused by a manufacturing defect.

The purchase price that must be returned to the consumer includes the price paid for manufacturer-installed items and transportation but does not include the price paid for anything that was not made by the manufacturer and installed at the factory.

The manufacturer is also responsible for paying; license, registration, and other official fees; and incidental damages that the lessee or buyer may have incurred such as finance charges, repair fees, towing fees, and rental car costs. This is one reason why you should always keep copies of all of your paperwork, and also be sure that you get and keep all copies of service and repair records given to you by the dealership when you pick up your vehicle after a repair.

Although there is a four-year statute of limitations to bring a lawsuit for breach of vehicle warranty, or for violations of Song-Beverly, you should act promptly.* 

The Lemon Law helps determine what is a reasonable number of repair attempts for problems that substantially impair the use, value, or safety of the vehicle. Under the California Lemon Law, it is presumed that a manufacturer has had a reasonable number of attempts to repair the vehicle if either:

Note, however, that the Lemon Law presumption is a guide, not an absolute rule. When in doubt, contact us and we will be happy to answer your questions regarding your particular situation.

Vehicle Warranty & General Rules

*UPDATE DEC. 2024 – ASSEMBLY BILL 1755 was enacted into law by Gov. Gavin Newsom in September 29, 2024, after admitting in a signing message (PDF) that he had reservations about it and that it has problems that lawmakers need to fix in the upcoming Legislative Session (2025-2026). It could take several months before lawmakers pass any changes. AB 1755 goes into effect April 1, 2025.

Ford, GM, and Stellantis (formerly Chrysler) are among the bill’s strongest supporters. General Motors had the highest rate of lemon law cases filed against it between 2018 and 2021.

Contact us for complete advice concerning your legal rights under the California Lemon Law and AB 1755.

California Residents ONLY.
Year restrictions apply: Model years 2021 – 2025 Only

This article was originally posted on this site in March 2022 and updated in December 2024.