Leasing a car can be an excellent option for those who enjoy driving the latest models or prefer lower monthly payments. However, recurring issues with leased vehicles can make the experience far from enjoyable. In these situations, the feeling of frustration can be overwhelming, especially if you think you’re stuck with a defective car for the duration of the lease.
Well, we have good news: the California Lemon Law frees you from defective vehicles even if you leased them. If you leased a car and you’re spending more time trying to fix it than drive it, this provision is for you. First, you must be sure of your rights under the Lemon Law for leased cars.
Come along as we explore the California Lemon Law that protects both owned and leased vehicles!
What is the Lemon Law?
The Lemon Law is a set of consumer protection laws designed to provide remedies for individuals stuck with a defective car. This law covers vehicles with notable issues affecting their use and reliability on the road. Under the lemon law, you might have a lemon if the automaker tried multiple times to repair the defects without success.
The question now is: Does Lemon law also apply to leases? The quick answer to that is yes! In California, lemon lease owners enjoy the same protections as those who own their vehicles. This is because leasing a car still involves a financial agreement between you, the leaseholder, and the manufacturer or dealership. If your leased car is defective, you shouldn’t be expected to continue making payments since it doesn’t work as promised.
Exploring the Rights of Leaseholders Under Lemon Law
If your leased car qualifies as a lemon, you may be entitled to the following rights:
The Right to Repair
The most fundamental right under the California Lemon Law is the right to repair. A leased vehicle with a notable defect must receive a reasonable number of repair attempts from the dealer or automaker.
By “reasonable,” we usually mean 3 or 4 repair attempts for the same issue. However, if the car is out of service for 30 or more days due to repairs, it likely already qualifies as a lemon.
The Right to a Refund or Replacement
If the automaker can’t repair the car after a reasonable period, you have the right to demand a remedy. As a leaseholder, this means:
- Cancellation of your lease contract. You no longer have to make payments, considering it’s not a functional vehicle.
- Reimbursement of lease-related costs. This might include your down payment, monthly payments made so far, taxes, and registration fees.
- A replacement vehicle. Sometimes, the manufacturer may offer to replace the leased car with a similar model.
Additionally, when your car is a lemon, it’s not just the lease payments that hurt your wallet. You might incur additional costs, such as towing fees, rental car expenses, and lost wages (if the car failure caused you to miss work). If you experienced these incidental costs caused by the car’s defect, the automaker has to reimburse you.
The Right to Legal Representation
If the manufacturer or dealer resists addressing your concerns, you can involve an attorney. The California Lemon Law typically has the automaker cover your legal fees if you win your case. This ensures that pursuing justice comes with zero financial burden for the consumer.
How to Exercise Your Rights as a Leaseholder
Knowing your rights as far as a Lemon Law lease goes is one thing. Exercising them is entirely different. This is how you can effectively take action:
Recognize the Issue
Pay close attention to recurring issues with your leased vehicle. Common defects that qualify under Lemon Law are transmission failure, brake malfunctions, electrical system issues, engine problems, etc. As mentioned, if the issues don’t stop coming even after repairs, you probably have a valid case.
Document Everything
From the moment you suspect your car is a lemon, start keeping detailed records. These should include a log of all repair attempts (dates, issues, repair details) and copies of work orders and invoices. If possible, include notes on how the defect has affected your daily life, such as missed working hours, safety concerns, etc.
This documentation will be crucial if you need to prove your case under the Lemon Law California leased cars abide by.
Notify the Manufacturer and Allow Time for Repairs
In California, you must notify the automaker about the defect before pursuing Lemon Law on a lease. The notification process usually involves sending a written letter or filling out a claim form. Your dealer may assist with this, but it’s best to consult a Lemon law attorney for unbiased guidance.
After notifying them, allow them to fix the issue if they request it.
Work with a Lemon Law Attorney
Navigating Lemon Law claims for leased cars can be complicated. An experienced attorney can:
- Assess if your vehicle qualifies as a lemon
- Ensure you meet all deadlines and requirements
- Handle negotiations with the manufacturer on your behalf.
Seek a Resolution
Once you file a claim, the automaker may offer a settlement, such as a replacement vehicle or a refund. If they refuse to comply, your attorney can help you pursue litigation in court.
Common Misconceptions About a Lemon Law Lease in California
There’s a lot of confusion surrounding how Lemon Laws apply to leased vehicles. Let’s dispel a few myths:
Myth 1: Lemon Laws Only Apply to Purchased Vehicles
Fact: The law understands that leaseholders deserve the same protections as buyers when it comes to defective products. As such, the California Lemon law covers leased vehicles, provided they meet the minimum criteria.
Myth 2: You’re Stuck with the Lease Payments
Fact: If your vehicle is a lemon, you have the right to terminate your lease without penalty. You may also be entitled to a refund for all the payments made.
Myth 3: You Have to Pay for Repairs
Fact: Under warranty and Lemon Law protections, manufacturers are responsible for covering repair costs.
FAQs
Can you “Lemon Law” a lease?
You can! California extends Lemon Law protections to leased vehicles that are still covered under the manufacturer’s warranty.
Who files the Lemon Law claim—the leaseholder or the leasing company?
In most cases, the leaseholder files the claim. However, the leasing company may also need to be involved, as they technically own the vehicle.
Can I stop making lease payments while my claim is being processed?
No, you must continue making payments until the issue is resolved. Failing to do so could affect your credit and complicate your claim.
Protect Yourself as a Leaseholder
As a leaseholder, you have the right to a safe and reliable vehicle, be it a lease or not. To qualify, you should document your experience, understand your state laws, and seek legal help. This way, you can protect yourself and avoid being stuck with a sour lemon.
In the end, the Lemon Law in California is all about fairness, ensuring that you’re not left paying for a lemon vehicle you can’t use. If your leased car doesn’t meet standards of quality and safety, contact us at Quill & Arrow LLP. You have rights, and it’s time to put them to work!