Is There a Lemon Law for Leased Cars?

When you lease a car, you have a reasonable expectation that it’s going to be reliable. So what happens if that car turns out to be a dud? That’s where the Lemon Law for leased cars comes into play.

California Lemon Law protects drivers who have a defective vehicle. The laws don’t just apply to new car buyers, but also to those leasing the vehicle. Knowing your rights makes all the difference between getting stuck with a faulty vehicle and receiving compensation.

The Lemon Pros have the experience needed to file a Lemon law claim for your leased car. With our practice area focused solely on defective vehicles, we’ve earned millions in settlements for our clients in California. We'll do whatever it takes to secure the best compensation possible. Schedule a free consultation today so you don't have to worry any longer.

Diving deeper into the Lemon laws, we will focus on how to get compensation for your leased car if it is unrepairable. We will also explain why having a Lemon law attorney on your team gives you the best chance for success.

Does the Lemon Law for Leased Vehicles Apply in California?

In California, the Song Beverly Consumer Warranty Act is the leading legislation for defective vehicles. In the state laws, leased vehicles receive the same coverage as cars that are purchased. Other states may not provide coverage for cars with a lease agreement. For example, Georgia and Illinois only have coverage for purchased vehicles. For this reason, it’s extremely important to research whether Lemon Law applies to leased vehicles in your state?

Leased cars are new vehicles that are basically rented for a time period from the dealership. These new vehicles could also be purchased, usually with a finance agreement. Both the leased and financed cars are covered under California Lemon Law. However, Lemon Law is not only for new cars. In this state, there’s also some Lemon law coverage for used cars as well, but they only receive coverage for as long as there is a warranty in place, so it’s much more difficult to get compensation on a used vehicle.

Signs Your Leased Car Might Be a Lemon

Not every leased vehicle with a problem is a lemon. Yet, some signs raise red flags, especially if there are recurring issues.

Pay attention if your leased car has frequent mechanical issues. Under the Lemon Law, the defect must substantially impair the safety, value or use of the vehicle, so it could be anything from engine trouble to a malfunctioning AC system.

A big factor with lemons is that they’ve been taken to a repair facility multiple times with no remedy. By law, you must have allowed the shop to supply four unsuccessful repair attempts (or two for serious safety issues) before the car can be deemed a lemon. There’s also the issue of how much time your car spends in the shop. If the dealer has had your car for more than a month, you may be due compensation.

Special Considerations Under the Lemon Law for Leased Cars

Leased cars have their own set of rules when it comes to Lemon law claims. In some cases, you may only be given the option to return the vehicle or exchange it for another. Because you don’t own the vehicle, it’s unlikely that you’ll be offered a cash and keep settlement.

There’s also the chance that a Lemon law case may affect your lease agreement. You may have the option to cancel the lease early without paying a penalty, but that’s not a guarantee. Check the terms of your contract carefully and speak with your dealership.

If the issues don’t get resolved with the authorized dealer or manufacturer before the lease ends, it could create end-of-lease complications. You may be held responsible for a car that never operated properly, so it’s important to act quickly.

When Does a Leased Car Qualify as a Lemon

To be eligible for a replacement vehicle in California, your leased car must meet the following criteria:

• Must be leased new: While there’s protection for some used cars, the leased vehicle must be new.
• Covered under manufacturer’s warranty: Most leased vehicles have warranty coverage for the term of the lease.
• Substantial defect that’s recurring: Problems covered by the Lemon Law affect the safety, use or value of the car.
• Reasonable number of repair attempts have been performed: For most problems, four repair attempts are required. With serious safety issues, a reasonable allowance is two attempts.
• Car has been out of service: If the car has been in for repairs totaling more than thirty cumulative days for the same problem, you may be able to circumvent the required repair attempts.
• Mileage/time frame: New cars in California are covered for 18,000 miles or 18 months of the original delivery date, whichever comes first.

If your car qualifies based on these terms, you will be required by law to give the manufacturer written notice of your intentions. You may also be required to allow more chances to repair the car before filing a claim.

What You Should Do if Your Leased Car Is a Lemon

Knowing what to do if your car is a lemon can help you get through the claim faster and with less stress. Here are some important steps to remember:

Document the Problem

If you want to win your Lemon law case, you must document everything. Keep a detailed record of every issue that occurs, with the dates, symptoms and relevant dashboard warnings. Take note of how the problem affects the value, use or safety of the vehicle.

With every repair attempt, keep a copy of the invoice and work order. It’s helpful if the technician can write notes about what was found or fixed. You also want every call or email with the dealership or manufacturer. Write down who you spoke with and the outcome of that communication.

Take the Car to an Authorized Dealer for Repairs

It may be tempting to take your car to a different shop for another opinion, but for now, you should only visit an authorized dealer. With each attempt, make sure you request a work order or receipt. There may be a time at a later date when you can get a second opinion, under the advisement of your lemon lawyer.

Track the Reasonable Number of Repair Attempts

It’s your responsibility to track the multiple repair attempts made. If there’s a serious safety issue, you may only need to have two attempts from the service department, but it’s best to speak with an attorney. Otherwise, plan on having four unsuccessful repair attempts before a claim can be filed.

Notify the Manufacturer in Writing

You are required by law to send a certified letter to the manufacturer to explain the issue and request resolution. Clearly outline the problems that have been dealt with and document the dates for every repair attempt. Keep your letter strictly factual with evidence to back up everything you say. This demand letter is best written by an attorney, especially if you want the manufacturer to take your request seriously.

Speak to a Lemon Lawyer

Lemon law attorneys protect consumers from getting ignored by the manufacturer. Many of them work on a contingency basis, meaning you only pay the legal fees when the case is won. Additionally, the manufacturer may be responsible for paying attorney fees. For that reason, you should have a free case evaluation as soon as you realize there are unresolved problems with your car.

A Lemon law attorney ensures you qualify for a case and helps with every step of the claim. Often, the average Lemon law settlement is much higher when the case is handled by an attorney.

Can I Return a Leased Car if It Has Problems?

Many people believe that you can return a leased car within 30 days, but that’s not always the case. Most of the time, the car cannot be returned until the lease is completed. However, if there’s an unrepairable defect involved, you may be able to file a Lemon law claim. Otherwise, you may have grounds to sue a car dealership, which is more the reason to have a qualified lawyer on your team.

Can I Break My Lease Early Due to Lemon Law?

The short answer is if the total lease payments haven’t been completed, you can’t just walk away from your agreement. You must complete everything agreed upon during the lease signing. To get out of the lease early because the same defect continues occurring, you will need to go through the Lemon law process.  Otherwise, you put yourself at risk of having a major hit to your credit and extensive penalties by taking the car back early. Before you stop any payments or return the vehicle, contact a Lemon law attorney for more advice.

How to Prevent Leasing a Lemon in the Future

It can be difficult to know if you are making the right decision when leasing a car. After all, you don’t want to end up with a lemon. The next time you look at leasing a vehicle, consider these important tips:

• Research vehicle reliability. We recommend using sites, such as Edmunds or JD Power to ensure the vehicle is built well and to read other customer reviews.
• Take a long test drive. Before signing the lease agreement, take time to make sure it’s everything you want. Drive it along varying road surfaces and types, such as highways and city streets.
• Read the agreement carefully. You need to understand everything you are agreeing to, especially the down payment amount, monthly fees and additional expenses (sales tax, registration fees, acquisition fee, etc.). Beyond the purchase price available at the end of the lease, look at information about an early surrender option, in case you don’t want to see the lease through.
• Research the dealership carefully. Look at Google reviews from other customers and check with the BBB to make sure there are no outstanding complaints.

Some due diligence can help you avoid a lemon, but there’s always the chance that you get a car with defects that couldn’t be prevented.

Need a California Lemon Law Attorney for Your Leased Car?

A car lease isn’t the same long term commitment as buying a car, but it can still feel prolonged if you are subject to a model that’s substantially impaired with defects. While the leased car should be covered under the warranty period, it may be difficult to have it repaired properly. By keeping detailed records of the repair charges, attempts to fix the car and other non-reimbursed costs, you may be able to get compensation for the troubles. We encourage you to act quickly for a speedy resolution.

The Lemon Pros are ready to get compensation for these persistent issues. As the best Lemon law attorney in California, we can represent you in court or get you a hefty refund for your troubles. Contact us for a free case evaluation today.