Wirtz Law Blog

Many consumers make a critical mistake when it comes to leased vehicles: renewing their lease despite their car being a lemon. This decision can have serious consequences, prolonging the agony of dealing with a defective car and limiting your legal options for recourse. California consumers must exercise caution when considering lease renewals for potentially faulty vehicles. By not renewing a lease on a lemon, individuals can avoid prolonging the frustration of dealing with a defective car and minimize the associated safety risks. If you have concerns about renewing a lease on your defective vehicle, contact an experienced California lemon law attorney to discuss your rights and remedies.

What is a Lemon Vehicle?

In California, a lemon law vehicle refers to a car, truck, SUV, EV, Hybrid, or other motor vehicle that has substantial defects or issues that impair its use, value, or safety and cannot be repaired satisfactorily within a reasonable number of attempts. California’s lemon law, officially known as the Song-Beverly Consumer Warranty Act, provides robust protections for consumers who unwittingly purchase or lease such defective vehicles. Under this law, if a car is determined to be a lemon, the manufacturer is obligated to either replace the vehicle or refund the purchase price minus a reasonable allowance for use.

To qualify as a lemon under California law, the vehicle must meet certain criteria, including:

• The car has a defect or non-conformity covered by the warranty;
• The defect substantially impairs the vehicle’s use, value, or safety; and
• The manufacturer or authorized dealer has made a reasonable number of repair attempts to fix the issue.

These provisions safeguard consumers from the financial and safety risks of owning or leasing a defective vehicle.

Why Should You Avoid Renewing a Lease on a Lemon

Renewing a lease on a lemon vehicle in California can be a costly mistake, especially considering the alarming statistics regarding unresolved safety recalls. Recent data from CARFAX reveals that California leads the nation in vehicles tagged with “do not drive” or “park outside” safety recalls that remain unfixed. Shockingly, approximately 245,000 vehicles in the state have urgent but unresolved recalls, indicating a significant safety risk for consumers.

Further, renewing a lease on a lemon vehicle in California can significantly compromise your legal claims and diminish your ability to seek proper recourse under the state’s Lemon Law. 

Waiving Rights

Renewing a lease on a lemon vehicle may inadvertently waive your rights under California’s Lemon Law. According to the Song-Beverly Consumer Warranty Act, consumers have the right to pursue remedies such as a replacement vehicle or a refund of the lease payments if their vehicle meets the criteria for being deemed a lemon. However, continuing to lease the car without taking appropriate legal action may imply acceptance of the vehicle’s defects and could weaken your legal position.  And remember, you don’t need to still own your car to pursue your lemon law rights.

Statute of Limitations

California has time limits, known as statutes of limitations, within which you must file a legal claim. If you renew your lease on a lemon vehicle without taking timely action, you risk exceeding these deadlines and forfeiting your opportunity to seek compensation. It’s crucial to be proactive and assert your legal rights promptly to avoid being barred by the statute of limitations.

Loss of Evidence

Over time, essential evidence related to your lemon vehicle’s defects may become lost or difficult to obtain. By renewing your lease without pursuing a legal claim, you risk losing access to crucial documentation, such as repair records and correspondence with the manufacturer or dealership, which could strengthen your case. Preserving evidence is essential for building a robust legal claim under the Lemon Law.

Burden of Proof

Successfully proving your vehicle qualifies as a lemon under California law requires substantial evidence and legal expertise. Renewing a lease on a lemon vehicle may make it more challenging to gather the necessary documentation and witnesses to support your claim. Additionally, without legal representation, navigating the complexities of Lemon Law litigation can be daunting and may result in an unfavorable outcome.

It’s essential to avoid such renewals and consult with an experienced California lemon law attorney to explore your options for pursuing a legal claim.

Can a Car Company Use Renewal as Defense to a California Lemon Law Claim 

Generally, a car company cannot use lease renewal to defend a California Lemon Law claim. Renewing a lease does not waive a consumer’s rights under the Song-Beverly Consumer Warranty Act. However, you don’t want to give the automaker any additional arguments that arise from buying a car that is supposedly a lemon. The Act provides specific protections for consumers who lease or purchase defective vehicles, commonly known as lemons. Regardless of whether the lease is renewed, if the vehicle meets the criteria for being deemed a lemon, the consumer retains the right to seek remedies such as a replacement vehicle or a refund of lease payments. However, car companies may use renewal as evidence that the vehicle’s defects are not substantial. 

What Defenses Can a Car Manufacturer Use in a Lemon Law Lawsuit

Car companies in California can deploy various defenses to counter Lemon Law claims, aiming to challenge the validity of the consumer’s assertions:

Substantial Impairment

Arguing that the alleged defects do not substantially impair the vehicle’s use, value, or safety, as required by the Song-Beverly Consumer Warranty Act.

Maintenance and Abuse

Claiming that the consumer failed to adhere to the manufacturer’s recommended maintenance schedule or abused the vehicle, thus voiding warranty coverage.

Insufficient Repair Attempts

Contending that the consumer did not provide adequate opportunities for repair attempts before initiating a Lemon Law claim.

These defenses can cast doubt on your claim and may result in the dismissal or reduction of compensation in Lemon Law cases. Therefore, it is best to work with an experienced California Lemon Law attorney. 

Owning a Lemon Isn’t Worth The Hassle and You Have Options

If you recently bought a new or used vehicle that turned out to be a lemon, you could be left with a huge financial burden if you don’t take action quickly. At Wirtz Law APC, our knowledgeable team of California Lemon Law attorneys has decades of experience working with vehicle owners to bring Lemon Law effective claims against vehicle manufacturers. We offer free consultations to all vehicle owners and only collect a fee in those cases where we are able to recover compensation. To learn more and to schedule a free consultation today, call Wirtz Law APC, at 858-259-5009. You can also reach us through our secure online contact form.