Recent Ruling Holds Manufacturer Warranty Doesn’t Extend to Used Cars

The Song-Beverly Consumer Warranty Act, commonly referred to as California’s Lemon Law, has long been interpreted to cover not only new cars — but used cars sold with the original manufacturer’s warranty. However, a recent ruling that came down from the California Court of Appeals might change that. In Rodriguez v. FCA US, LLC, the court determined that a previously owned vehicle with some of the manufacturer’s express warranty remaining does not have the protections of the lemon law.

What Happened in Rodriguez v. FCA US LLC?

In Rodriguez, the plaintiffs purchased a two-year old Dodge with 55,000 miles on it from a pre-owned car dealership. While the manufacturer’s basic warranty had expired, the limited powertrain warranty had not. After they discovered the truck had defects in its Totally Integrated Power Module, they brought the vehicle to a Dodge dealership for repairs a number of times. Following unsuccessful repair attempts by the Dodge dealer, the plaintiffs sued the manufacturer for violating the refund-or-replace provision of the lemon law.

The court’s decision noted that the current definition of “new motor vehicle” in the Song-Beverly Consumer Warranty Act means a new vehicle used for personal, family, or household purposes. It also specified that the term refers to a “dealer-owned vehicle and a ‘demonstrator’ or other motor vehicle sold with a manufacturer’s new car warranty.” In this case, the manufacturer argued that the truck sold to the plaintiffs did not meet the criteria for a “new motor vehicle.” The trial court agreed with FCA, and the plaintiffs appealed the case.

The sole issue heard by the Court of Appeals concerned whether the phrase contained in the statute, “other motor vehicle sold with a manufacturer’s new car warranty” should include pre-owned vehicles with a portion of the balance left on the manufacturer’s express warranty. The court determined that the lemon law does not cover such vehicles, holding that “it functions as a catch-all for sales of essentially new vehicles where the applicable warranty was issued with the sale.”

What Can Used Car Buyers Do to Protect Themselves?

It remains to be seen how the Rodriguez ruling will impact lemon law claims moving forward. For starters, this case is under review by the California Supreme Court. We look forward for more clarity on how the lemon law applies to used vehicles from the California Supreme Court. Previously, consumers purchasing used cars could be confident they would be shielded by the lemon law if the vehicle had a left over or extended manufacturer’s warranty. But now, purchasing a vehicle with a balance on the original warranty may no longer be relevant when it comes to pursuing a lemon law claim.

It should be emphasized that the facts in this case differ from the purchase of a demonstrator or Certified Pre-Owned vehicle, which is still entitled to have the protections of California’s lemon law if they satisfy the criteria. Notably, if you’re in the market for a used car, buying a Certified Pre-Owned vehicle can help ensure you are safeguarded in the event the car ends up being a lemon — a used car sold in a private sale has no protections under the lemon law. You should do a significant amount of research on the vehicle you intend to purchase and consider having it inspected by a qualified mechanic before you take it off the lot.

If you purchased a used car with a defect that cannot be repaired but does not qualify for a remedy under the lemon law, you may still be entitled to pursue another remedy. For instance, if the dealership misled you or misrepresented the condition of the vehicle, you might be able to file a fraud claim against them. If a dealership sold you a car with problems and used dishonest tactics to procure the sale, you might be eligible to recover the vehicle’s purchase price, punitive damages, and other compensation.

When Does a Vehicle Qualify as a Lemon?

Regardless of whether your vehicle was purchased new or is a Certified Pre-Owned vehicle, certain criteria must be met to file a lemon law claim. In addition to being covered by the original manufacturer’s warranty, the vehicle must fail to conform to it. The following conditions must also be met in order for you to be eligible for a refund or replacement vehicle:

• The vehicle must have been purchased in the state of California
• The car must have a substantial defect that affects its value or safety
• The defect must be one that cannot be repaired after several reasonable attempts have been made

In addition, a vehicle may qualify as a lemon if it was in the repair shop for a total of 30 days and repairs were not yet made or were unsuccessful. There is also a legal presumption that a vehicle is a lemon if the defect arose within 18 months of the vehicle’s delivery or before the first 18,000 miles were driven. If either of these conditions are satisfied, no further proof is needed to establish that your car is a lemon. Instead, the burden is on the manufacturer to demonstrate that it is not.

Contact an Experienced Southern California Lemon Law Attorney

If you purchased a vehicle with a nonconformity that cannot be repaired, you may be eligible to pursue a claim under California’s Lemon Law. It’s best to consult with a knowledgeable lemon law attorney who can discuss your legal rights and options. The attorneys at the Ledbetter Law Firm are dedicated to providing high-quality legal services for lemon law claims — and obtaining the maximum compensation to which they’re entitled

The Ledbetter Law Firm works with clients throughout Southern California who have purchased lemon vehicles and assists them with securing the replacement or refund they deserve from the manufacturer. With offices conveniently located in Torrance and San Diego, California, telephone and video conferencing options are also available. Call (310) 878-0067 to schedule a consultation with a California Lemon Law attorney today.