GM Lemon Law Settlements

California Lemon Law protects consumers from defective vehicles while they are covered by a warranty. If your General Motors (GM) vehicle suffers from repeated failure and doesn’t meet performance or quality standards, you may be due a refund or a replacement vehicle. GM Lemon Law settlements provide a remedy to qualified drivers and help them replace their defective vehicles.

The Lemon Pros have assisted thousands of other GM drivers in California with defective vehicles. Because our practice area only includes Lemon Law, we have become experts in the field. Contact us for a free consultation to see what you might be owed. 

In this guide, we strive to explain California’s Lemon Law, highlighting the qualifications. We also show you why it’s important to have an expert GM Lemon Law attorney fighting your case with you.

What Are the Average California Lemon Law Settlements?

The average Lemon Law settlement in California tends to be between $5,000 and $100,000, depending on the type of vehicle you drive and the problems that you are experiencing. During your free consultation, your qualified attorney will be able to give an estimate of what you may expect, either through arbitration or the courts. 

These estimates are just general examples, and every case is different. Factors such as how many repair attempts were made, how long your vehicle was out of service and how clearly the problem affects safety or use can all impact the final amount. An experienced Lemon Law attorney can help you understand what your case may be worth based on your specific situation.

What Is the GM Lemon Law in California?

California drivers are protected through two different laws: the Tanner Consumer Protection Act and the Song-Beverly Consumer Warranty Act. GM vehicles are covered under these protections, meaning you don't have to be stuck with a defective car if it is under warranty. 

Drivers have further coverage through the federal law known as the Magnuson-Moss Warranty Act. Knowing that these statutes are in place, consumers gain confidence when fighting the biggest car manufacturers, including GM. A GM Lemon Law claim provides compensation if the vehicle has unrepairable defects that are covered by the warranty.

What Are the Criteria for a GM Lemon Law Claim?

To file a Lemon Law case, you need to make sure that your vehicle qualifies. During a free consultation with a Lemon Law attorney, you will review these aspects to ensure a claim is possible: 

• Unrepairable defects: The defect must substantially impair the safety, value, or use of the vehicle. 
• Warrantied coverage: There must be a manufacturer’s warranty covering the defect. In the case of a used vehicle, coverage must be provided by the dealership or manufacturer.
• Time limit: New cars are eligible for coverage during the first 18,000 miles or 18 months, whichever comes first. The covered defect must surface during this time. With used cars, the time limit is only during the warranty period.
• Reasonable number of repair attempts: With serious safety concerns, there only need to be two repair attempts before Lemon Law claims can be filed. All other defects require a minimum of four repair visits. 

The key to winning GM Lemon Law cases is in the documentation. If you have a defective General Motors vehicle, you want to record everything. To begin the Lemon Law process, you’ll want your lease or purchase agreement, the manufacturer’s original warranty paperwork, and a record of every repair attempt.

Common Issues Covered by GM Lemon Law Settlements

Because the GM Lemon Law covers so many different defects, there could be a claim for almost any warrantied complaint. In fact, many claims are related to some of the most common car problems.

The law protects major failures, such as defective engines or transmission problems, but it also covers smaller issues, including minor failures with the electrical system and cosmetic concerns that can’t be properly repaired. 

Factors That Affect GM Lemon Law Settlement Agreement

Whether you are looking for cash compensation or a GM Lemon Law buyback, there are several factors influencing what you can expect. One of the determining factors comes down to the severity of the issue that’s causing trouble. California law also allows for the vehicle’s age, mileage, and usage to play a part in the settlement offer. Auto manufacturers are only responsible for the time lost driving the car since the problem started. Therefore, if you were driving 15,000 miles before the malfunction started, you won’t receive compensation for that time. 

Another essential factor is the number of repair attempts that have occurred. Once the dealership has had a fair chance to fix the issue without a resolution, your case becomes much stronger. Documentation is also going to play a valuable role in the outcome. You want to have your repair orders, warranty details and all communication records organized for your lawyer to review.

It's important to note that Lemon Law protection does vary by state. While California has extensive protection for a lemon vehicle that’s new or used, the same can’t be said in some other states. For example, there’s no specific protection for used General Motors vehicles in Alabama, Mississippi, Louisiana, Oklahoma, or Wyoming.

Possible Outcomes: What to Expect in a GM Lemon Law Case?

Whether your case is arbitrated by a third party or it goes to court, the same outcome is possible. Here are the possibilities to consider. 

1. Lemon vehicle buyback: GM may buy back your vehicle. The compensation would include the original purchase price, monthly payments, and other expenses you incurred.
2. Replacement vehicle: GM may offer to replace the vehicle with another model of equal or greater value. This new vehicle must be defect-free and you must return your other model.
3. Additional repairs: If GM believes that the problem can be repaired, there may be additional attempts offered. You may also receive some cash compensation for your trouble. 
4. Cash compensation: GM may offer you money to keep the vehicle. Before choosing this option, you need to determine if you are willing to live with the issue. If they are minor electrical issues, you may not be bothered by them too much and are willing to forgo further repairs.

If you take all of the necessary steps to file a Lemon Law claim, you shouldn’t be waiting more than a few months for a resolution. However, heading to court will extend the timeframe. 

An attorney will help you address all of the common issues with receiving a settlement, including whether or not you can claim any further issues with the vehicle at a later date. Along with hiring an attorney, it’s best to seek some guidance from a qualified tax representative regarding the tax owed on a settlement. There could be financial obligations involved with the payout that you need to be aware of. 

How to Maximize Your GM Lemon Law Settlement?

If you want to earn as much as possible with your settlement, here are a few of our best tips to consider:

Hire an experienced GM Lemon Law attorney. You could file a claim yourself and try to go up against GM, but the manufacturers take the case much more seriously when you are represented by an attorney. We know how to negotiate with them and don’t let them off the hook easily. Contact our team today for a free consultation.

Be ready to negotiate. In many cases, GM is going to make a first offer, but it may not be their best offer. You don’t have to immediately accept what is thrown at you. Instead, you can negotiate and get a better payout. A qualified attorney will know when it’s time to push harder and when to back off.

Prepare your evidence. If you are prepared and have all the evidence you need, your claim will be much stronger. GM will see that you have the proof needed to go to court and will typically offer you a settlement instead.

The most common pitfall when filing a Lemon Law claim is thinking you can do it on your own. Even though the facts speak for themselves, most manufacturers aren't giving in to your requests without a strong reason to, which is why a lawyer is needed.

What Is a GM Lemon Law Buyback?

With a Lemon Law buyback, GM will take your vehicle back and replace it with another of equal or greater value. Because this new vehicle won’t have the same defect that you’ve been struggling with, your trust in auto reliability goes up and you can worry less about breaking down. In some cases, monetary compensation may also be a part of the package, depending on how much trouble you’ve experienced.

The GM Lemon Law Process

While it may seem challenging to navigate how to start a Lemon Law claim, you don’t have to walk through the process alone. As experts in the state’s Lemon Law, we can help you get the best settlement possible. Here’s an overview of what the process should look like for most defective GM vehicle owners:

Identify the Lemon

Whether you have a Buick LaCrosse or a Chevy Silverado, the first step in filing a successful Lemon Law claim will always be to ensure your GM car is eligible. If you had the vehicle repaired and there’s no longer a defect, it’s not eligible. Instead, you must be dealing with a faulty vehicle that has a persistent problem that cannot be resolved. A qualified attorney helps you determine if lemon laws apply in your situation. 

Understand Your Rights

The next step is to start studying the California Lemon Law so you know your rights. A Lemon Law attorney can explain your rights to you, but it’s always wise to do some reading on your own. Familiarizing yourself with the settlement agreement process and your options can help you fight for your rights.

Take Your Car to the Dealership for Repair

To ensure the vehicle meets the criteria of a lemon car, it must have been taken to an authorized repair center. If you haven’t done this yet, now is the time. Otherwise, gather together all of the detailed records outlining the repair attempts. Your record should include all of the repair orders with the date of service, the repair that was attempted, the outcome, and the name of anyone you spoke with, either at the dealership or at General Motors.

Notify GM

Formal notification must be sent to the manufacturer. You can draft this letter yourself, but the most favorable outcome comes from having a lawyer involved in the process. Because we’ve worked with such cases in the past, we know exactly what needs to be said in the demand letter to get results. In this letter, you must state the case, give details of the vehicle sold, and confirm what type of compensation you are looking to get.

GM's Response

The next step is to wait to receive a response. GM may offer to provide additional repairs at no cost to you. If you like the car except for the defects, you may be willing to accept this offer and keep trying. There’s also the option for a new vehicle, which requires turning your car back into the dealer. Otherwise, General Motors may buy back your vehicle, which may include the full purchase price, any monthly payments, and other costs, such as sales tax, registration, and towing bills. The final option may be to keep the vehicle but take a small payout for compensation. This is a good option if a serious injury isn’t a concern and the defect is manageable.

Legal Action

If legal action needs to be taken, it’s always best to have a lawyer working with you. A Lemon Law attorney is someone who specializes in representing clients with defective vehicles that cannot be repaired. By hiring an attorney, you reduce the stress of dealing with the claim, and you allow a professional to represent you. 

The Lemon Pros are with you from the start of the claim until it's resolved and beyond. We help you gather evidence, file the claim, communicate with the manufacturer and represent you in court.

To help your lawyer, you want to gather all of the evidence needed to have them represent you. It’s also helpful to listen to the advice given by the lawyer and be willing to negotiate when the time comes.

Court Trial

A fair share of cases will need to go to court. As long as your vehicle meets the certain criteria outlined above, you have nothing to worry about. However, the process could be a little lengthier, as times vary depending on how busy the court is. The court is used to dealing with all of the most common defects, so it won’t take a lot of time once your case is heard. Make sure you have all of the evidence ready for the court and listen to all of the advice given by your attorney.

Want to Start a GM Lemon Law Claim?

If you are having persistent problems with your GM vehicle, it’s time to talk to a lawyer. You want to learn your rights under California’s Lemon Law and fight for any compensation you may be owed.

After serving thousands of clients in similar situations, we’ve polished our knowledge of Lemon Law claims and can represent your best interests. Schedule a free consultation with The Lemon Pros to see what GM may owe you. 

It’s time to partner with a Lemon Law Attorney in California that gets results. Contact us today and let us discuss your case.

FAQ

How Long Does It Take to Get a GM Lemon Law Settlement?

The average timeframe for a Lemon Law buyback is anywhere from a couple of months to a year, depending on the complexity of your case. A qualified lawyer will help you navigate the process, ensuring you spend less time waiting for a resolution.

Do You Need a Lawyer for a GM Lemon Law Settlement?

While you could win a Lemon Law case without a lawyer, your stress level is going to be much higher and you may not get everything you deserve. An attorney can itemize all of the expenses and get the manufacturer to reimburse you, giving you payment for your down payment, sales tax, registration fees, towing bills and more.

What if GM Refuses to Settle My Lemon Law Claim?

If California's Lemon Law applies to your situation, you have every right to continue pursuing compensation. A Lemon Law attorney will contact the manufacturer and negotiate on your behalf. If need be, the GM Lemon Law attorney can also represent you in court to defend your rights.

Are GM Lemon Law Settlements Taxable?

Some Lemon Law cases may result in a law payment. For that reason, you want to consult with an expert tax professional about your liabilities. They can help explain what you may need to pay from your GM Lemon Law buyback.

What Types of GM Vehicles Are Covered?

The new GM vehicle used for personal use is covered by the California Lemon Law. This regulation includes all Chevy, GMC, Cadillac and Buick models. The vehicle may be financed, purchased outright or leased. Also, you may be able to take advantage of the Lemon Law for used cars in some cases.

Do I Need to Go to Court to Win a GM Lemon Law Settlement?

Not usually. In most cases, the GM Lemon Law buyback can occur through negotiation or arbitration without going to court. If the case must go to court, it's best to have a GM Lemon Law attorney working on your behalf.