Lemon law for leased cars in California
If you lease rather than buy, you can still be protected. California’s Song-Beverly Consumer Warranty Act expressly includes lessees, so a leased car, truck, or SUV with a warranty defect the manufacturer can’t fix may qualify just like a purchased one.
Who can bring the claim
The lessee (the person who leased the vehicle) generally has the right to pursue the claim, even though a leasing company technically owns the vehicle.
What a lease buyback typically looks like
If a manufacturer repurchases a leased vehicle, the restitution typically addresses the amounts the lessee actually paid (such as the amount due at signing and monthly payments), less a mileage offset for use before the first repair attempt for the problem, and the manufacturer deals with the leasing company to close out the remaining lease balance. Incidental costs such as towing or rental cars may also be recoverable. The exact numbers depend on your lease and repair history.
Repair attempts and the presumption
The same standards apply to leased and purchased vehicles: the defect must be covered by the warranty and substantially impair use, value, or safety, and the manufacturer must have had a reasonable number of repair opportunities. California’s Tanner Act presumption can also apply to leases.
Practical tips for lessees
- Keep making your lease payments while the matter is reviewed; falling behind can create separate problems.
- Don’t turn the vehicle in early or trade it without getting advice first.
- Keep your lease agreement, every repair order, and records of rental or towing costs.
- If your lease is ending soon, that doesn’t necessarily end your rights, but timing matters, so it is worth acting promptly.
Think your car may be a lemon? An attorney can review your repair history for free, with no obligation. The manufacturer pays attorney fees if you win, so there is nothing out of pocket for you.
General information only, not legal advice. Every situation is different, and no particular outcome is guaranteed.