What To Do If A Dealership Sells You a Lemon Car

You saved up, did your research, and trusted a dealership with your money. Now the car is back in the shop, the warning lights keep coming back, and you are stuck without reliable transportation. You are not alone, and you are not powerless. California has some of the strongest car buyer protections in the country, and there are clear steps you can take right now to protect your rights.

First things first: is your car likely a “lemon”?

California’s Song-Beverly Consumer Warranty Act, often called the California Lemon Law, protects buyers and lessees when a vehicle has a defect that the dealer or manufacturer cannot fix within a reasonable number of attempts. The core statutes are Cal. Civ. Code §§ 1790-1795.8, with a specific new vehicle presumption in the Tanner Consumer Protection Act at Cal. Civ. Code § 1793.22.

Key terms in plain English:

• Nonconformity: a defect or condition covered by warranty that substantially impairs the vehicle’s use, value, or safety. See Cal. Civ. Code § 1793.22(e)(1).
• Reasonable number of repair attempts: there is no hard number in every case, but the Tanner Act provides a helpful presumption.

Under the Tanner Act presumption for new motor vehicles, your car is presumed to be a lemon if, within the first 18 months or 18,000 miles, whichever comes first:

• The dealer made 2 or more repair attempts for a defect that is likely to cause death or serious bodily injury if the vehicle is driven, or
• The dealer made 4 or more repair attempts for the same nonconformity that is not necessarily safety related, or
• The vehicle has been out of service for repair of any nonconformities for a total of 30 or more cumulative days.

Cal. Civ. Code § 1793.22(b).

Important points:

• You do not lose your rights if the problem occurs after 18 months or 18,000 miles. The presumption is just a helpful shortcut to show the vehicle is a lemon. The broader lemon law still applies to warranted defects. See Cal. Civ. Code § 1793.2.
• The 30 days out of service do not need to be consecutive. Waiting for parts counts. Diagnostic time counts. Keep every repair order.
• A “could not duplicate” on the repair order still counts as a repair attempt.

What vehicles are covered in California

California lemon law covers more than most people think.

Covered:

• New cars, trucks, SUVs, vans, and many demonstrators and dealer-owned vehicles sold or leased with a manufacturer warranty. Cal. Civ. Code § 1793.22(e)(2).
• Used vehicles that still have a manufacturer’s new car warranty remaining at the time of sale, or that come with a dealer or certified pre-owned warranty. Cal. Civ. Code § 1791.2 and § 1795.5.
• Vehicles purchased or leased primarily for personal, family, or household use. Small businesses may also be covered if the vehicle’s gross vehicle weight is under 10,000 pounds and the business has five or fewer vehicles registered in California. See Cal. Civ. Code § 1793.22(e)(2).

Implied warranties on used vehicles:

• California implies a warranty of merchantability in many retail sales, which means the car should be fit for ordinary driving, free of significant defects that render it unsafe or inoperable. Cal. Civ. Code § 1792 and § 1791.1.
• When a used vehicle is sold with an express warranty, the implied warranty generally lasts at least 30 days and up to 3 months, coextensive with the express warranty. Cal. Civ. Code § 1791.1(c).
• Buy-here-pay-here dealers must provide a minimum written warranty by statute, typically at least 30 days or 1,000 miles, with specific repair obligations. Cal. Civ. Code §§ 1795.51-1795.53.

Not covered or limited:

• Private party sales without any remaining manufacturer warranty usually are not covered by Song-Beverly, though other fraud and contract remedies may apply.
• Problems caused by abuse, neglect, aftermarket modifications, or accidents are not lemon law nonconformities.

If you purchased out of state or have a specialty vehicle, speak with counsel to confirm what law applies.

Your rights under California law, in plain English

• The manufacturer must repair your car to conform to the warranty within a reasonable number of attempts. Cal. Civ. Code § 1793.2(d).
• If they cannot, you are entitled to either a repurchase, often called a buyback, or a replacement vehicle. You choose the remedy, subject to legal limits. Cal. Civ. Code § 1793.2(d)(2).
• You can recover incidental damages like towing and rental cars. Cal. Civ. Code § 1794(b).
• If the manufacturer willfully fails to meet its obligations, a court may award a civil penalty up to two times your actual damages. Cal. Civ. Code § 1794(c).
• California has a powerful fee shifting rule. If you prevail, the manufacturer must pay your reasonable attorney’s fees and costs. Cal. Civ. Code § 1794(d). This is why reputable lemon law firms handle cases with no out-of-pocket fees to you.

Federal protection also applies. The Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-2312, creates federal warranty rights and allows recovery of attorney’s fees if you win. It often works together with California law.

Step-by-step: what to do if the dealership sold you a lemon

1) Document everything from day one

• Keep your purchase or lease contract, financing papers, and any warranty booklets.
• Create a log with dates, mileage at each issue, warning lights, symptoms, and how the defect affects use, value, or safety. Photos and short videos help.
• Save all texts and emails with the dealer or manufacturer.

2) Always use an authorized dealer for warranty repairs

• Take the vehicle to an authorized dealership and clearly describe each problem.
• Ask for a detailed repair order every time, even if they say the issue could not be duplicated, they updated software, or they made an adjustment. The repair order is evidence.
• Before leaving, read the repair order. It should list your complaint, the technician’s findings, the repairs performed, and in-out dates and mileage. Ask them to correct it if it is incomplete.

3) Track your repair attempts and days out of service

• Count each visit for the same defect. If it is a safety defect, two attempts may be enough for the Tanner Act presumption.
• Add up total calendar days your car has been at the dealership for warranty repairs. Hit 30 or more cumulative days and you may qualify.

4) Give the manufacturer a final opportunity, then escalate

• Many warranty booklets explain how to contact the manufacturer’s customer care for a final attempt or review. Use that channel in writing.
• Consider sending a brief, clear letter by certified mail to the manufacturer that lists the defects, repair history, and an ask for a buyback or replacement. Keep a copy.

5) Be cautious with arbitration

• Some manufacturers offer arbitration. It can be quicker but is not required for you to bring a lemon law case in court.
• Arbitration rules vary, and outcomes can be mixed. Get legal advice before you commit, especially if your case involves safety defects, long days out of service, or serious value loss.

6) Speak with a lemon law attorney

• An experienced lawyer will analyze your repair orders, identify all qualifying nonconformities, and press the manufacturer on deadlines and documentation.
• Because of fee shifting under Cal. Civ. Code § 1794(d), you should not have out-of-pocket attorney fees if your case has merit.

Remedies if your car qualifies as a lemon

If the manufacturer cannot repair your vehicle within a reasonable number of attempts, you choose between a repurchase or a replacement. Cal. Civ. Code § 1793.2(d)(2).

Repurchase, commonly called a buyback

A buyback puts you back in the financial position you should have been in, with a small mileage offset for the miles you drove before the first repair attempt for the problem that made the car a lemon.

A proper buyback typically includes:

• Refund of your down payment and all monthly payments made.
• Payoff of the remaining loan or lease balance.
• Refund of sales tax, license, registration, and certain fees.
• Incidental damages like towing and rental cars, if reasonable and related to the defect.
• Deduction of a “use” offset calculated by statute.

Mileage offset formula:

• Offset = Purchase price x (miles at first repair attempt for the defect / 120,000)
• The 120,000-mile denominator is set by law. See Cal. Civ. Code § 1793.2(d)(2)(C).

Example:

• Purchase price: 40,000 dollars
• Miles at first repair attempt: 4,500
• Offset = 40,000 x (4,500 / 120,000) = 40,000 x 0.0375 = 1,500 dollars
• The buyback refund would be the total paid and payable, minus 1,500 dollars, plus incidental damages.

Replacement vehicle

You may choose a replacement that is substantially identical to the lemon vehicle, with no mileage offset. The manufacturer covers taxes and fees to put you in the replacement. Your loan or lease terms are adjusted accordingly. Cal. Civ. Code § 1793.2(d)(2)(A).

Civil penalties for willful violations

If a court finds the manufacturer willfully failed to promptly repurchase or replace after a reasonable number of repair attempts, it may award a civil penalty up to two times your actual damages. Cal. Civ. Code § 1794(c). This is case specific.

Used cars and dealership conduct to watch for

Even when the lemon law remedy is primarily the manufacturer’s responsibility, dealer conduct matters. Here is what to know.

• Certified pre-owned and dealer warranties: If the used car came with a dealer warranty or CPO warranty, that is an express warranty that triggers Song-Beverly’s obligations. Cal. Civ. Code § 1791.2 and § 1795.5.
• Implied warranty periods: When a used car is sold with an express warranty, the implied warranty of merchantability generally lasts at least 30 days and up to 3 months. Cal. Civ. Code § 1791.1(c).
• Lemon law buyback branding: Vehicles reacquired by a manufacturer as lemon law buybacks must have a branded title and a clear disclosure decal. Dealers must provide specific written disclosures to the next buyer. Cal. Civ. Code § 1793.23.
• Add-on products and price transparency: California lawmakers have moved to clamp down on bait-and-switch pricing and junk fees. AB 1755 (2024) and SB 766, sometimes referenced as the CARS Act, target deceptive dealership practices tied to undisclosed add-ons and misrepresentations about price and consent. These measures align with broader consumer protection efforts that require clear disclosures and informed consent for optional products.
• Fraud and misrepresentation: If a dealer concealed a branded title, rolled negative equity into the deal without disclosure, or sold a vehicle with known material defects while claiming it was problem-free, separate claims may exist under the Consumer Legal Remedies Act, Cal. Civ. Code § 1770, and the Unfair Competition Law, Bus. & Prof. Code § 17200.

If you suspect the dealership misled you, save your advertising screenshots and any texts, and bring them to your consultation.

Common dealership responses, and how to handle them

• “No problem found.” Ask them to document your exact complaint on the repair order, including when and how often it happens. Provide a video if the issue is intermittent. A documented visit still counts as an attempt.
• “We updated software, that is not a repair.” Updates count if they are performed to address your complaint under warranty. Get it on the repair order.
• “We need to order parts, take the car home.” Politely ask them to note that parts are on order and the vehicle is unsafe or unreliable to drive, if that applies. Days waiting for parts while the vehicle is at the dealership count toward the 30 days.
• “You modified the car.” Aftermarket changes can affect coverage. If you have modifications, discuss with an attorney. Many defects, like transmission failures or electrical issues, are unrelated to popular add-ons and should still be covered.

Worked examples

Example 1: Safety defect with two attempts

You bought a new 2024 SUV. At 3,000 miles, the brake system warning light activates and pedal travel feels spongy. The dealer replaces a sensor. Two weeks later, it happens again and the dealer replaces a hydraulic control unit. That is 2 attempts for a defect that could cause serious injury if driven. Within the first 18 months or 18,000 miles, the Tanner Act presumption can apply. Cal. Civ. Code § 1793.22(b)(1).

Example 2: Four attempts for the same nonconformity

You purchased a 2023 sedan with a constant check engine light and stalling. The dealer performs software updates and replaces a throttle body across 4 separate visits. The issue returns each time. That is 4 or more repair attempts for the same nonconformity. Presumption can apply if within 18 months or 18,000 miles, and you still have rights beyond that period under the broader lemon law. Cal. Civ. Code § 1793.22(b)(2).

Example 3: 30 or more cumulative days out of service

You leased a 2022 pickup. Electrical issues kept it at the dealer for 12 days in January, 11 days in March, and 10 days in June, a total of 33 days. Those days are cumulative, so you may qualify. Cal. Civ. Code § 1793.22(b)(3).

Example 4: Used CPO vehicle with warranty

You bought a certified 2021 crossover with a 12-month CPO warranty. The transmission slips and shudders repeatedly, with 3 repair visits over 2 months and no lasting fix. Even though it is used, the CPO warranty is an express warranty. Song-Beverly applies. Cal. Civ. Code § 1795.5.

Arbitration, timelines, and strategy

• Manufacturer arbitration: It can resolve some cases faster, but programs vary. You can still pursue a court claim if arbitration is not fair or complete. Ask a lawyer to evaluate whether arbitration helps or hurts your specific facts.
• Timelines: Some cases resolve in a few months with negotiation when the repair history is clear. Contested matters or cases involving civil penalties can take longer. Your attorney should give you a realistic plan based on your repair orders and communications.
• Replacement versus buyback: Many consumers prefer buybacks for flexibility. A replacement can be a good option if you love the model and want to avoid financing changes. Ask counsel to compare both outcomes using your numbers.

Practical tips to strengthen your case

• Always get a printed or digital repair order before you leave the dealership. If you did not get one in the past, ask the service department to email your full history.
• Keep your own notes on when the defect shows up. A simple calendar log with dates and mileage can make or break a presumption.
• Do not wait for a fifth or sixth visit. Once you hit the key thresholds, consider making a written request to the manufacturer.
• If the vehicle is unsafe, do not drive it. Tell the service advisor, and request a rental or loaner under your warranty or as a goodwill accommodation.
• Be polite and firm. You are building a record. Assume a judge will read the emails one day.

Frequently asked questions

Do I sue the dealership or the manufacturer?

Most lemon law claims for repurchase or replacement are against the manufacturer because it issued the warranty and has the legal duty to conform the vehicle to that warranty. Cal. Civ. Code § 1793.2(d). The dealership can be involved if there was misrepresentation or repair negligence, but your primary lemon remedy runs against the manufacturer.

What if my warranty expired but I had multiple repairs while it was active?

You can still have a strong claim. The key question is whether the nonconformity arose and was subject to repair attempts during the warranty period. The law does not require all attempts to occur before expiration. Document when the problem started and your repair visits.

How many repair attempts do I need?

There is no single number for every case. The Tanner Act presumption helps if you hit 2 attempts for a serious safety defect, 4 attempts for the same nonconformity, or 30 total days out of service within 18 months or 18,000 miles. Cal. Civ. Code § 1793.22(b). Even if you do not meet those numbers, you can still win based on the totality of your repair history under Cal. Civ. Code § 1793.2.

What expenses can I recover?

In addition to a buyback or replacement, you can recover reasonable incidental damages like towing, rideshare to pick up the car, rental cars, and similar out-of-pocket costs caused by the defect. Cal. Civ. Code § 1794(b). Keep receipts.

Do I have to try arbitration first?

No. California lemon law does not require you to complete manufacturer arbitration before bringing a lawsuit. Some consumers choose arbitration for speed, but get advice first on pros and cons for your case.

A quick note on pricing and add-ons at the dealership

California is increasing scrutiny of dealership sales practices. AB 1755 (2024) and SB 766, often referenced as the CARS Act, aim to curb false price advertising, bait-and-switch tactics, and undisclosed add-on products. These measures are part of a broader effort that requires clear, written disclosures and your express, informed consent before you are charged for extras. If you were charged for add-ons you did not agree to, or you were quoted one price and charged another, gather your deal jacket, worksheet, and buyer’s order. In addition to lemon law, you may have separate claims to unwind illegal charges or seek refunds.

When the dealership sold you a lemon, we are ready to help

If your car has been in the shop repeatedly, if a safety defect keeps returning, or if you have been without your vehicle for 30 or more days, you deserve a clear path forward. LemonLaws.com is a California and Washington lemon law firm focused on protecting consumers. We offer a free consultation, explain your options in plain English, and handle claims with no out-of-pocket fees. California’s fee shifting rule requires the manufacturer to pay your reasonable attorney’s fees if you prevail. See Cal. Civ. Code § 1794(d).

You have already spent enough time and money fighting a defective car. Reach out, share your repair orders, and let our team go to work for you.