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Lemon Law Basics: California Lemon Laws
An Overview of California Lemon Law
California lemon law: Who is covered under?
The California lemon law covers consumers planning to use the vehicle
for personal or family purposes, and people or entities who intend to
use the vehicle for business purposes so long as the gross vehicle weight
does not exceed 10,000 pounds and the business entity does not have more
than five vehicles registered in California. Motorcycles and the living
areas of mobile homes are excluded. The vehicle must be covered by a manufacturer's
new vehicle warranty to qualify for California lemon law. Leased vehicles
are also covered, so long as the lease extends for more than four months.
Contact a qualified California lemon law attorney for more answers to
all your questions.
What kinds of problems are covered under California lemon law?
To qualify for California lemon law, the vehicle must have a defect which
falls under its warranty and which seriously affects its use, safety,
or value. California lemon law does not apply if the nonconformity is
caused by unauthorized or unreasonable after the vehicle's purchase.
What must I do to invoke California lemon law?
California lemon law goes into effect if any of these three circumstances
take place during the first 18 months of vehicle ownership or first 18,000
miles:
- The manufacturer has had two unsuccessful attempts
to repair a nonconformity that could threaten the life of the driver,
and the manufacturer has been notified.
- The manufacturer has had four unsuccessful attempts
to repair a nonconformity that does not threaten the life of the driver,
and the manufacturer has been notified.
- The vehicle has been out of commission for a cumulative
total of 30 days, due to attempts to repair the nonconformity.
In the first two cases, the consumer is only obliged to notify the manufacturer
if the California lemon law is clearly outlined in the vehicle's owner
manual.
What kind of settlement can I expect under California lemon law?
Under California lemon law, the manufacturer must offer either a refund
minus an offset for use of the vehicle, or a replacement vehicle. Refunds
come in three categories:
- Purchase price, including the full amount paid for
the car as well as manufacturer-installed options
- Collateral costs, including all taxes and license
and registration fees
- Incidental costs, including costs caused by the nonconformity,
like towing fees and rental vehicles.
The offset is calculated by dividing the number of miles driven before
the nonconformity was reported by 120,000 and multiplying the result by
the total purchase price.
For the owner of a vehicle, California lemon law says the refund should
include all three categories of refund, minus the offset. If the car is
leased, the terms are not specifically covered by California lemon law.
However, a common settlement includes refunding the payoff amount minus
the security deposit and any refund for the unused portion of the warranty.
The lessee would usually receive a refund of the collateral charges, incidental
charges, and all monthly payments made until the vehicle is returned.
If a replacement vehicle is offered, it must be new, equivalent to the
original vehicle, and include all standard warranties. The manufacturer
must pay collateral fees for the new vehicle and incidental charges incurred
with the old one. The consumer may be required to pay the offset.
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