California Lemon Law (2026): How to Qualify & Get a Refund

California's Song-Beverly Consumer Warranty Act requires manufacturers to refund or replace vehicles with a substantial defect that persists after four or more repair attempts, two attempts for a safety defect, or more than 30 cumulative days out of service within 18 months or 18,000 miles of delivery, at the consumer's election.

California has one of the strongest lemon laws in the United States. The Song-Beverly Consumer Warranty Act protects buyers and lessees of new and used vehicles that come with a manufacturer warranty. If your vehicle has a substantial defect that the manufacturer cannot fix after a reasonable number of repair attempts, California law entitles you to a full refund or a replacement vehicle.

This guide covers the vehicles that qualify, the repair attempt requirements, your remedies, the 2025 legislative reforms under AB 1755 and SB 26, and the step-by-step process for filing a claim.

What Vehicles Are Covered

California's lemon law covers a broad range of vehicles purchased or leased in the state, as long as they carry an active manufacturer's warranty. Knowing which vehicles qualify is the first step in evaluating a potential claim.

Covered Vehicle Types

• New passenger cars: Sedans, coupes, hatchbacks, and similar vehicles
• Trucks and SUVs: Pickup trucks, sport utility vehicles, and crossovers
• Vans and minivans: Including passenger and cargo configurations
• Motorhomes: The chassis and drivetrain components (living quarters may have separate coverage)
• Electric vehicles: Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs)
• Leased vehicles: Any leased vehicle used for personal, family, or household purposes
• Dealer demonstrators: Demo vehicles with remaining warranty coverage

Vehicles Not Covered

• Motorcycles (excluded from the Tanner Act's 'new motor vehicle' definition under Civil Code § 1793.22(e)(2), though other consumer-goods remedies may still apply)
• Vehicles purchased primarily for business use by companies with more than five vehicles in their fleet
• Off-road vehicles not designed for highway use
• Boats and watercraft
• Vehicles sold "as is" without any warranty
• Vehicles with fully expired warranties and no remaining coverage

California's Lemon Law Presumption

Under Civil Code § 1793.22, California law creates a rebuttable "presumption" that a vehicle is a lemon when certain conditions are met. This presumption shifts the burden of proof to the manufacturer, requiring the manufacturer to demonstrate that the vehicle does not qualify as a lemon.

The presumption must arise within the first 18 months of ownership or 18,000 miles on the odometer, whichever occurs first.

When the Presumption Applies

Important: The presumption is a tool to help consumers, but it is not the only path to relief. Even if the presumption does not apply, you may still have a valid lemon law claim under Civil Code § 1793.2 if you can prove the manufacturer failed to repair a substantial defect after a reasonable number of attempts.

Before you can assert the lemon law presumption in court, you must first exhaust any manufacturer-run arbitration program that is certified by the California Department of Consumer Affairs, provided you received written notice of the program. Arbitration through a certified program is informal, free to consumers, and often faster than litigation.

What Qualifies as a "Substantial" Defect?

Not every problem with your vehicle triggers lemon law protection. The defect must "substantially impair" the vehicle's use, value, or safety. Examples include:

• Engine or transmission failures that affect drivability
• Brake system malfunctions
• Steering problems that create safety hazards
• Electrical system failures affecting critical components
• Airbag or safety restraint system defects
• Persistent warning lights indicating serious mechanical issues
• Battery or charging system failures in electric vehicles

Minor issues like squeaks, rattles, or cosmetic blemishes typically do not qualify unless they significantly affect the vehicle's value or your ability to use it safely.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under California law, the consumer has the right to choose between two remedies: a full refund (known as a "buyback") or a replacement vehicle.

Option 1: Vehicle Buyback (Refund)

Under Civil Code § 1793.2(d)(2), the manufacturer must refund:

• Full purchase price: Including sales tax
• Finance charges: Interest and fees paid on the vehicle loan
• Registration and license fees: DMV costs associated with the vehicle
• Incidental damages: Towing costs, rental car expenses, and out-of-pocket repair costs
• Loan payoff: Direct payment to the lender to satisfy the remaining loan balance

Mileage Offset (Usage Deduction): The manufacturer may deduct a reasonable amount for the miles you drove before your first repair attempt for the defect. California law specifies this formula:

Usage Deduction = (Purchase Price x Miles at First Repair) / 120,000

For example, if you paid $40,000 for your vehicle and drove 5,000 miles before the first repair attempt, the deduction would be approximately $1,667.

Option 2: Replacement Vehicle

Instead of a refund, you may request a replacement vehicle that is:

• Substantially identical to the original vehicle
• Acceptable to the consumer
• Accompanied by all applicable manufacturer warranties

The manufacturer must also reimburse incidental costs and cannot require you to pay any additional fees beyond the usage deduction.

Leased Vehicle Remedies

Leased vehicles receive the same protections under the Song-Beverly Act. If your leased vehicle qualifies as a lemon, you may be entitled to:

• A refund of all lease payments made to date
• Return of your down payment and security deposit
• Reimbursement of registration and license fees
• Termination of the lease with no remaining payment obligations
• Reimbursement for rental cars, towing, and other incidental expenses

The manufacturer may apply the same mileage offset formula to calculate a usage deduction based on miles driven before the first repair attempt.

Attorney Fees and Civil Penalties

California law provides strong financial incentives for consumers to enforce their lemon law rights.

Attorney Fees

Under Civil Code § 1794(d), if you prevail in a lemon law case, the manufacturer must pay your reasonable attorney fees and court costs. Because of this fee-shifting provision, most California lemon law attorneys work on a contingency basis, meaning you pay nothing upfront and owe no attorney fees unless you win.

Civil Penalty for Willful Violations

Under Civil Code § 1794(c), if the manufacturer's failure to comply with the lemon law was willful, the court may award a civil penalty of up to two times your actual damages on top of the standard refund or replacement. A violation is considered willful when the manufacturer knew of its obligations but intentionally declined to fulfill them.

Federal Backstop: The Magnuson-Moss Warranty Act

California's state law protections layer on top of a federal baseline. The Magnuson-Moss Warranty Act (15 U.S.C. 2301 et seq.) gives consumers the right to sue in federal court when a manufacturer breaches a written warranty or implied warranty of merchantability. If your vehicle qualifies as a lemon under California law, you may also have a parallel Magnuson-Moss claim. Attorney fees are recoverable under both statutes, so most lemon law attorneys analyze both theories simultaneously.

2025 Legislative Reforms: AB 1755 and SB 26

California's lemon law underwent significant procedural changes in 2025 through two pieces of legislation: Assembly Bill 1755 (signed September 29, 2024; key provisions operative April 1, 2025) and Senate Bill 26 (signed April 2, 2025; main provisions operative July 1, 2025). These reforms were enacted after lemon law filings surged from approximately 15,000 cases in 2022 to over 25,000 in 2024.

Manufacturer Opt-In System (SB 26)

SB 26 created a voluntary opt-in framework. Manufacturers who choose to participate commit to the new AB 1755 procedures for a minimum of five years, and the election is irrevocable for that period. The California Department of Consumer Affairs maintains and publishes the official list of opted-in manufacturers and must update it by December 15 each year.

As of 2025, most major manufacturers have opted in, including Ford, General Motors, Stellantis (Chrysler, Dodge, Jeep, RAM), Honda, Toyota, Hyundai, Kia, Nissan, BMW, Mercedes-Benz, Tesla, Subaru, Volkswagen, and others. Check the DCA's published list to confirm your manufacturer's current status.

Pre-Suit Written Notice Requirement (Civil Penalties)

Under Code of Civil Procedure § 871.24, for claims against opted-in manufacturers, consumers who want to seek civil penalties must provide written notice at least 30 days before filing a lawsuit. You can still file suit for a basic buyback or replacement without sending this notice, but you will be unable to seek the 2x civil penalty without it.

The notice must be sent by certified mail or email to the manufacturer's designated contact address and must include:

• The consumer's name and contact information
• The vehicle identification number (VIN)
• A description of the defect or nonconformity
• A summary of the repair history
• The consumer's desired remedy (refund or replacement)

The manufacturer then has 30 days to make an offer of restitution or replacement. If the manufacturer agrees to a buyback or replacement, it must complete the transaction within 60 days of receiving the original notice.

$50-Per-Day Penalty for Late Completion

Once the consumer signs and delivers a release, the manufacturer must complete the agreed restitution or replacement within 30 days. Failure to meet that deadline triggers a mandatory penalty of $50 per day until the manufacturer finalizes the transaction, unless the delay is caused by the consumer's own failure to cooperate in good faith.

Statute of Limitations

AB 1755 established clear filing deadlines under Code of Civil Procedure § 871.21:

• One year after the warranty expires, OR
• Six years from the original purchase or delivery date

Whichever deadline comes first controls. The 30-day notice period is tolled against these deadlines (it does not count against your filing window), up to a maximum tolling period of 60 days.

Used Vehicle Coverage Clarified by the Courts

Used vehicle coverage was not changed by AB 1755 or SB 26. The California Supreme Court's October 2024 decision in Rodriguez v. FCA US, LLC clarified that a used vehicle qualifies for the Song-Beverly refund-or-replace remedy only if a manufacturer-issued warranty, such as a CPO warranty, was issued at the time of the used-vehicle sale. A used car sold with just the unexpired balance of its original factory warranty does not qualify, even though it did under the older Court of Appeal rule in Jensen v. BMW of North America that Rodriguez disapproved. Vehicles sold "as is" or with only a dealer-issued warranty are generally not covered either.

How to File a Lemon Law Claim in California

Filing a successful lemon law claim requires careful documentation and adherence to proper procedures.

Step 1: Document Everything

• Keep all repair orders and invoices
• Note the dates your vehicle was in the shop and the dates it was returned
• Document the symptoms you experienced in writing
• Save all correspondence with the dealer and manufacturer
• Take photos or videos of defects when possible

Step 2: Allow Reasonable Repair Attempts

Give the manufacturer a reasonable opportunity to fix the problem. For most defects, this means at least four repair attempts for the same issue. For safety defects that could cause death or serious injury, two attempts may be sufficient.

Step 3: Send Written Notice (If Seeking Civil Penalties)

If the manufacturer has opted in under SB 26 and you intend to seek civil penalties, you must send a formal written notice at least 30 days before filing suit. Send it by certified mail or email to the manufacturer's designated lemon law contact address. Even if you are not seeking penalties, sending a written demand letter is a best practice that strengthens your case.

Step 4: Wait for the Manufacturer's Response

The manufacturer has 30 days to respond to your notice. They may offer to:

• Make additional repair attempts
• Offer a buyback or replacement
• Propose a settlement

If the manufacturer agrees to a resolution, it must be completed within 60 days of your original notice (or within 30 days of receiving a signed release, with daily penalties accruing if they miss that window). If they fail to respond or their offer is inadequate, you may proceed with further action.

Step 5: Consider Arbitration or Litigation

If the manufacturer does not resolve your claim satisfactorily, you have two main options:

• Manufacturer arbitration: Many manufacturers offer arbitration programs certified by the California Department of Consumer Affairs. Arbitration is typically faster and less expensive than litigation.
• File a lawsuit: You can sue the manufacturer in court. Under Civil Code § 1794(d), the manufacturer must pay your attorney fees if you win.

Note: If a manufacturer has a DCA-certified arbitration program and you received written notice of its availability, you must generally attempt arbitration before asserting the lemon law presumption in court.

Manufacturer Defenses

Manufacturers may raise several defenses to avoid lemon law liability. Understanding these defenses can help you build a stronger case.

Used Vehicle Protections

California's lemon law can protect used vehicle buyers, but coverage depends on when the manufacturer's warranty was issued, not simply on whether warranty coverage remains. In Rodriguez v. FCA US, LLC (Cal. 2024), the California Supreme Court held that a used vehicle sold with only the unexpired balance of the original new-car warranty carried over from its first sale is not a "new motor vehicle" under Civil Code Sec 1793.22(e)(2) and does not qualify for the Song-Beverly refund-or-replace remedy. The decision disapproved the older Court of Appeal rule in Jensen v. BMW of North America, Inc. (1995) that had treated any unexpired warranty balance as qualifying.

Used Vehicles That Qualify

• Certified Pre-Owned (CPO) vehicles: A CPO or other manufacturer-issued warranty issued at the time of the used-vehicle sale qualifies for the same refund-or-replace protections as a new car
• Dealer demonstrators: Demo vehicles are defined as "new motor vehicles" under Civil Code Sec 1793.22(e)(2) regardless of when their warranty was issued

Used Vehicles That Do Not Qualify for Refund-or-Replace

• Vehicles sold with only the unexpired balance of the original factory warranty: A used car does not become a "new motor vehicle" just because some of the original manufacturer's warranty period remains. The buyer may still have a claim for breach of that express warranty under the California Commercial Code or the federal Magnuson-Moss Warranty Act, and may have implied-warranty rights against the used-vehicle dealer under Civil Code Sec 1795.5, but not the Song-Beverly refund-or-replace remedy against the manufacturer
• Vehicles sold "as is" with no warranty
• Vehicles with fully expired manufacturer warranties
• Vehicles covered only by a dealer-issued extended service contract (these are handled under separate warranty laws, not the Song-Beverly lemon law provisions)
• Private party sales without manufacturer warranty transfers

The CARS Act (Effective October 1, 2026)

While not a lemon law change, the California Combating Auto Retail Scams (CARS) Act (SB 766, signed October 6, 2025) will give used car buyers additional protections starting October 1, 2026. Key provisions include:

• A three-day right to cancel for used cars priced at $50,000 or less, provided the vehicle has not been driven more than 400 miles
• Dealers must disclose the full vehicle price upfront, including all non-optional charges
• Dealers may charge a restocking fee of up to 1.5% of the purchase price (generally capped at $600) plus up to $1 per mile over 250 miles

This law does not replace lemon law protections but provides an additional safety net for used car buyers.

Electric Vehicle Considerations

Electric vehicles present unique lemon law considerations due to their complex battery systems and electronic components.

Common EV Defects That May Qualify

• Battery degradation beyond normal parameters specified by the manufacturer
• Charging system failures
• Range significantly below manufacturer specifications
• Software glitches affecting vehicle operation or safety
• Electric motor malfunctions
• Thermal management system failures

EV-Specific Challenges

EV owners may face unique challenges in lemon law cases:

• Software updates: Manufacturers may argue that over-the-air software updates resolved the issue
• Battery warranties: Separate battery warranties (often 8 years/100,000 miles) may complicate coverage analysis
• Dealer expertise: Some dealers may lack EV-specific diagnostic training, which can affect the quality of repair attempts
• Documentation: Software-related issues may be harder to document than traditional mechanical problems

Statute of Limitations

Understanding the deadlines for filing a lemon law claim is critical. Missing these deadlines can bar your claim entirely.

Current Deadlines (AB 1755, Operative 2025)

• During warranty: Claims should be initiated while the manufacturer warranty is still active
• After warranty expires: You have one year from the warranty expiration date to file
• Maximum period: No claim may be filed more than six years from the original purchase or delivery date
• Whichever comes first controls the deadline

The 30-day pre-suit notice period required for civil penalty claims against opted-in manufacturers is tolled against these deadlines (it does not eat into your filing window), up to a maximum of 60 days. Send your written notice as soon as you believe your vehicle qualifies.

More California Laws

• California Car Accident Laws