San Francisco lemon laws are under the California state laws that provide a remedy for purchasers of cars that repeatedly fail to meet standards of quality and performance. These cars are called lemons. The rights afforded to consumers by lemon laws may exceed the warranties expressed in purchase contracts.

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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