Purchasing a new vehicle is a big deal. It’s one of the most expensive purchases a person can make, second to a new home, and takes a great deal of planning and forethought. But what about when that milestone purchase turns into a big let down? That’s why it’s important to educate yourself about California’s lemon law and your rights as a consumer. The legal world can be confusing and sometimes you don’t know where to start. That’s why we’ve compiled some of the biggest mistakes new vehicle owners make when they file a claim for lemon law compensation.
1) Misinterpreting the Law
Many people don’t realize there are two overlapping time periods in which you can file for compensation under CA Lemon Law. These are the Lemon Law Presumption period and the Manufacturer’s Warranty Guarantee period. These two time frames are often incorrectly used interchangeably.
This can confuse vehicle owners as to which applies, the number or repairs needed, or if they’re eligible at all. Despite their overlap and similar requirements, there are important distinctions between the two.
The first is the California Lemon Law Presumption period. If a new or leased vehicle meets any of the following conditions within the first 18 months or 18,000 miles, it is a lemon in the eyes of the law.
- The vehicle was at the dealership for repairs for 30 or more days, making it inaccessible to the owner
- The vehicle was repaired at least two times for issues that would impact the safety of the driver and others
- The vehicle was repaired at least four times for issues that did not cause safety concerns
If a new vehicle meets any of these three conditions during those first 18 months or 18,000 miles, then it is automatically considered a defective lemon. In these cases, because the vehicle is so new, there should be no reason for it to have issues, especially ones that cause a threat to safety. During this time, it’s the manufacturer’s responsibility to prove the vehicle isn’t a lemon, rather than yours to prove that it is.
Many think that once this time frame passes, they can no longer file a claim for lemon law compensation, but that is not true. When you buy a new vehicle, the manufacturer provides a guarantee that the vehicle will be safe and operational as part of their warranties. While the length of the warranty coverage varies by manufacturer, new vehicles have two main warranty types that provide coverage for a set number of years or miles. One is basic bumper-to-bumper coverage for your electronics, tires, and other areas; the other is powertrain which covers the transmission and engine. Both of these provide coverage for a set number of years or miles, whichever comes first.
If, during the manufacturer’s warranty period, your vehicle meets any of the following conditions, then it could be eligible for lemon law compensation:
- The vehicle was at the dealership for repairs for 30 or more days in a row
- The vehicle was repaired at the dealership at least twice for a singular issue that has not been resolved
- The vehicle was repaired at the dealership at least three times for multiple issues that have not been resolved
So long as your required repair attempts fall within one of these two time periods, you can file a claim for lemon law compensation.
2) Entering Arbitration
Most manufacturers offer a form of state certified mediation called arbitration. During the arbitration process, the vehicle owner and manufacturer present their case to a licensed third party, the arbitrator. The arbitrator has 40 days to decide if the vehicle is a lemon and what recourse should be expected. While on its surface, arbitration can seem like a quick and easy way to resolve a lemon law dispute, it can actually work against you for a few reasons.
- Arbitration does not require attorney representation. A consumer may feel prepared to argue their case to the arbitrator, but could soon find themselves feeling differently after seeing the team of legal experts the manufacturer will have at their disposal.
- Manufacturers often sponsor or have long standing relationships with their arbitration programs. This means it’s possible for the manufacturer to have undue influence over the outcome of the proceedings.
- The arbitration process is fast. Arbitrators have 40 days to come to a decision on a lemon law dispute, meaning you may not have time to fully prepare your case before presenting it.
- If you don’t like the arbitrator’s decision, it is your right to file a claim in a court of law. However, the decision and information presented during the arbitration process can be used as evidence for this claim.
While arbitration may be a way to handle a lemon law dispute without the help of an attorney, more often than not, it puts you at a disadvantage. If you choose to go into arbitration with the auto manufacturer, make sure that their arbitration program is duly certified by the California Department of Consumer Affairs.
3) Joining a Class Action Lawsuit
From time to time you’ll see class action lawsuits pop up that cover multiple years, makes, and models of vehicles for very specific issues. These lawsuits are easy to join. Your case becomes one of many that an attorney presents altogether and, if successful, you receive a portion of the settlement.
So why would you file for lemon law instead of joining one of these class actions?
Quite simply, more money and more attention. As part of a class action, you are just one of many plaintiffs that the attorney is representing. These suits can take years to resolve, and during that time, it’s unlikely that you will get any one-on-one attention from your attorney. Then, once resolved, all of the plaintiffs divide the settlement amount. Because of this division, it is likely that your final settlement amount will be lower than if you had filed as an individual.
It is only recommended to join a class action lawsuit if you are eligible for it, but not for a standalone lemon law claim.
4) Not Filing a Claim for Compensation
There are lots of reasons someone might choose not to file a lemon law compensation claim, but often, those reasons are not always well informed. Sometimes, owners worry an unsuccessful claim will impact their credit rating. Some worry that if they lose, they cannot buy a vehicle from that manufacturer ever again. This is not true. No matter the outcome of your claim, there are no negative consequences to filing.
Other times, consumers assume that they will not be eligible for lemon law compensation and just don’t bother. In these cases, they are not taking advantage of the protections that are rightfully theirs by law. This is why it’s important to consult with an experienced attorney who can evaluate your claim and guide you through the process.
Related reading: Does Lemon Law Apply to Used Cars in California?
5) Filing a Claim Too Early
Sometimes, consumers become too eager or impatient to solve their vehicle troubles and try to speed through the process. But if you do not have the documentation or all the requisite repairs first, it’s highly unlikely that your claim will be successful. It is not uncommon to build lemon law cases over time, especially when the manufacturer’s warranty period allows for it. By ensuring that your vehicle meets all the prerequisites before filing your claim, you will have a higher chance of success.
6) Filing a Claim Too Late
Conversely to the above, you can wait too long to file your claim. Lemon law claims have a statute of limitations, meaning that you must file a claim within a certain time period. In California, that period starts when the problems begin and lasts for the next four years. This is why lemon law is applicable to newer vehicles and not older ones. After years of use, it is normal for a vehicle to begin to show signs of wear and tear, even if at one point it may have qualified as a lemon. This is why it’s important to get your repairs and begin the process as soon as you begin noticing problems.
7) Not Hiring a Lemon Law Attorney
Because it’s not required to have an attorney when you file for lemon law, many people believe that means they don’t need one. But, as mentioned above concerning arbitration, California lemon laws are complex and the manufacturer will most certainly have legal experts and attorneys on their side. A skilled California lemon law attorney will be able to advise you throughout the process, negotiate with the manufacturer, and ensure you get the most compensation possible out of your case.
One of the main reasons people choose not to hire an attorney is because they feel it’s going to be expensive, and ultimately, not worth the cost. But, what they don’t know is that it actually doesn’t cost anything to hire a California lemon law attorney.
The majority of lemon law cases in California are taken on contingency. This just means that the manufacturer is responsible for any attorney fees or court costs – not you. When you win your case, the manufacturer will pay for the attorney’s services, as well as provide a monetary settlement or replacement vehicle to you, and, potentially, additional damages as well. Your original settlement is 100% yours.
By avoiding these seven pitfalls, you can help ensure that your lemon law claim is successful and results in the maximum compensation that you are entitled to. Don’t let the manufacturer get away with selling you a defective vehicle when there are steps you can take to protect yourself. Not sure what to do next? Give us a call today and our team of knowledgeable lemon law experts will be happy to point you in the right direction.
Get a Good Lawyer
If you’re considering filing a lemon law claim, a skilled California Lemon lawyer can advise you about the process, help you prepare essential documents, and provide you with accurate information about your options to obtain the compensation you rightfully deserve.
Call us today at (323) 553-7525 for a free, no-obligation consultation and get a straight, no-nonsense assessment of your case.
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