If you purchase or lease a vehicle that seems to have numerous, unrepairable defects despite the number of times you have brought it into the dealership or manufacturer to have the issues addressed, you might have a lemon. These vehicles are not only undependable, but they are a financial drain on your pocketbook and can add significant stress to your life. If you decide to file a claim, you may be wondering, “What’s the average Lemon Law settlement in California?”
When a vehicle turns out to be a lemon, you might find yourself paying for costly repairs time and time again on top of making sure your loan payments are made on time. This can be frustrating, especially if you are unable to drive the car, which is constantly in and out of the shop for repairs. When these situations arise, you have the right as a consumer in the state of California to file a claim for compensation from your lemon vehicle’s manufacturer.
What Makes a Vehicle a Lemon in California?
Under California state law, a lemon is any car, truck, SUV, motorcycle, RV, or other motorized vehicle that fails to meet certain safety and performance requirements. If the vehicle suffers from a certain malfunction that affects its value, use, or overall safety, it might be considered a lemon. However, a lemon is not a vehicle that needs a simple fix.
In order to qualify as a lemon, your vehicle must be in the shop for repairs for what is deemed a “reasonable” number of times without the issue being addressed. The vehicle must also be under warranty coverage, so if your vehicle was purchased through a private seller, it will not meet the requirements outlined in California Lemon Law. This claim must be made either 18 months after the vehicle has been delivered or within the first 18,000 miles driven after delivery.
You might also qualify for a claim under California Lemon Law if your vehicle has been in the shop for continuous repairs for an accumulated amount of time totaling 30 days.
Certain issues that might arise in a lemon vehicle can include:
- Persistent issues with the power steering or transmission
- Failure of the braking system
- Malfunctions with the vehicle’s exhaust system
- Issues in the heating and cooling system
- Defects in the electrical system
- Issues with the suspension system of the vehicle
- Serious safety malfunctions, such as issues with seatbelts and airbags
- Continuous water leaks that lead to breakdowns of the vehicle’s integrity over time
What You Might Be Able to Receive in a Lemon Law Settlement
There are several recoverable damages you might be able to receive in a Lemon Law settlement in the state of California, each one impacting the overall value of your settlement. These damages might include:
- The total balance of your vehicle loan
- Any expenses that can be proven to be a direct result of your vehicle being a lemon, such as rental car costs or tow truck expenses
- The down payment you made on the vehicle and any monthly payments you have made thus far
- Any collateral charges regarding the vehicle, such as sales tax, service contracts, finances charges, and prorated registration
Factors That Can Impact Your California Lemon Law Settlement
In the state of California, the average Lemon Law claim settlement can be influenced by the presence of certain factors in the case. These factors can include the following:
- The Severity of the Defects: If the defects of the vehicle could lead to the serious injury or death of another, this could significantly increase your settlement.
- The Length of Ownership: Settlements can be impacted by how long the vehicle has been owned and the current mileage.
- The Documentation Available: Having certain evidence on hand, such as work order receipts and bills showing the repair work you had done, can help improve the settlement you receive.
- Value of the Vehicle: Your settlement amount will most likely be based on the value of the vehicle.
- Additionally, things like the mileage of the vehicle, the make, model, age, and the original purchase price can all affect the amount of your California Lemon Law settlement.
How to Get a Full Settlement
Unfortunately, automakers and dealerships don’t always offer fair settlements when facing lemon law claims. If you want to make sure you get a full settlement, you need to take certain steps to protect the value of your claim. You should:
- Act immediately. The compensable value of your vehicle will be determined using a formula that offsets the mileage you’ve put on the car in the intervening time between buying it and experiencing your first breakdown. Delaying your first repair attempt can thus cost you money by increasing the number of miles you put on the car while it was still in operable condition.
- Don’t DIY. Using an unauthorized mechanic or attempting do-it-yourself repairs can void your warranty and leave you unable to pursue a settlement under California lemon laws. Take your car to the dealership or another authorized mechanic for inspections and repairs.
- Keep the car. If you sell or trade the car prematurely, that can destroy the evidence required to make sure that your final settlement amount is fair. You should keep the car until your lemon law case reaches a resolution.
- Hire a lawyer. Working with a lemon lawyer is the most effective way to make sure you get the full settlement amount to which you are entitled. Your attorney can gather evidence to support your claim and use it in negotiations with the dealership or automaker’s insurance company, potentially increasing your final settlement amount.
Taking these steps may make it possible to get more money back in a refund should the dealership decide to take this approach to settling your case. It’s difficult to tell what a lemon law case is worth without evaluating the specifics, but your lawyer can let you know if the insurance company is offering a fair settlement.
Recent Changes to California Lemon Laws
It used to be the case that California drivers had up to four years to report a lemon. Recently, the state changed its legislation regarding lemons to allow drivers only one year to file a claim under AB 1755. You’ll also need to submit documentation of your intention to open a case with the car manufacturer or dealership prior to beginning the claim-filing process.
Recent legislative changes also allow automotive manufacturers to opt into a new alternative arbitration process for resolving lemon law claims. Your attorney can help you navigate the new California lemon laws to make sure you don’t miss your opportunity to get compensated for your losses.
Why Hire a Lemon Law Attorney?
In the first month of 2025 alone, the Bureau of Automotive Repairs received 1,833 complaints. They constitute just a small number of the overall complaints regarding lemon vehicles that were made that year. If you’re one of the many drivers who have purchased a lemon in the Golden State within the past year, you can hire a lemon law attorney to help you file a claim and get your money back.
Your attorney can handle all the details of your case for you, from filing paperwork to collecting evidence and negotiating a settlement with the dealership or auto manufacturer that sold you the car. Working with a lemon lawyer is the most effective way to make sure you get fully compensated for your losses.
FAQs
How Long Does It Take to Settle a Lemon Law Case in California?
How long it takes to settle a lemon law case in California varies. There is no real way of estimating how long it will take for a Lemon Law claim to reach a satisfactory settlement. This is because there are several factors involved that can affect the overall timeline of the case. These factors can include the complexity of the case, the cooperation of the manufacturer involved, and any litigation that might take place.
What Are Some Common Settlement Outcomes for a Lemon Law Claim in California?
In the state of California, there can be many common settlement outcomes for a Lemon Law claim. These can include a vehicle repurchase or refund minus the amount deemed a usage fee for when you were able to safely drive the car, a replacement vehicle, a cash settlement, or receiving an extended warranty for the vehicle.
Are California Lemon Law Settlements Taxable?
California lemon law settlements are taxable. According to the Franchise Tax Board of California, any form of compensation received in a Lemon Law claims case can be considered income and, therefore, must be reported on your state income tax form. This can include any cash payments, refunds related to the settlement, or credits made toward related purchases.
What Does It Cost to Retain an Attorney for a Lemon Law Claim?
What it costs to retain an attorney for a lemon law claim varies. When you work with an attorney from Lemon Law Pro, there are no fees that you will have to worry about. We are here to help you free of charge. Instead, the manufacturer of the vehicle will become liable for all attorney costs and court fees, along with taking accountability for your lemon vehicle and paying out your settlement in whichever form is agreed upon.
Contact a Trusted California Lemon Law Attorney Today
If you or someone you know is suffering with a lemon vehicle in the state of California, know that there are legal options available to you. The Lemon Law attorneys at Lemon Law Pro are available to assist clients statewide in filing their claims for compensation. Contact our offices today to schedule your consultation. Remember, our services are free to you. Not a penny will leave your pocket when you hire an attorney from Lemon Law Pro.
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