If you are driving a defective vehicle, you may be due compensation under California Lemon Law. What happens when you win a Lemon Law case? When you win a Lemon Law case, you may be offered a replacement vehicle, a buyback, or cash compensation. Lemon Law cases can take several months to a year to finalize. Yet, the end result is worth the effort, especially when you get to drive a car without defects.
The Lemon Pros help you achieve your goals. Because our practice area is solely focused on winning lemon lawsuits, we know how to get the compensation you deserve in California. Contact us today for a free case evaluation and let us help you get out of that lemon.
In this comprehensive guide, we will cover the basics of California lemon laws and discuss what may happen when you win a Lemon Law claim. We outline why you should have Lemon Law attorneys on your team and give you some helpful tips about the timeline and what comes next.
Once you win a Lemon Law case, you will either receive compensation, a Lemon Law buyback, or a replacement vehicle from the manufacturer. Yet, there are still some things that must be done. Here are a few aspects to consider.
One of the benefits of working with a qualified attorney is that all of these steps will be outlined for you in detail. A lawyer makes sure you follow all the requirements of the California Lemon Law so you don’t miss any of your compensation.
If you win your California Lemon Law claim, you may be entitled to monetary compensation, a replacement vehicle, or a Lemon Law buyback. While you may not receive back the full purchase price because the Lemon Law buyback amount is going to be based on how long you had the car before the problem started, you will receive a settlement for the time that it was defective. The finance charges may also be reimbursed. You can use our handy Lemon Law Buyback Calculator to estimate the amount you might receive.
If the vehicle was leased instead of financed, you may receive some of your payments back, including the down payment. Either way, you may be due back registration fees, sales tax, licensing fees, and other payments that you made upfront.
Additionally, there may be additional repair costs that need to be reimbursed. Most warranty work is covered, so there should have been no expense out of pocket, but there are times when an independent review from another mechanic may be necessary. If the case is won, the auto manufacturer may need to pay these costs.
Because it’s not your fault that the original vehicle has diminished in value, the manufacturer may also need to compensate you for the loss. If the defect caused the diminished value, these collateral costs will not be yours to bear.
Some consequential and incidental damages are also included in settlements. As an example, you may have rental car expenses, tow truck fees, and other expenses related to the defect that would be included in your full refund.
When winning your Lemon case, the manufacturer is also responsible for paying your legal fees in California. Because we work on a contingency basis, all of our attorneys’ fees are waived until the case is won, so you don’t have to pay anything out of pocket. Instead, we let the manufacturer foot the bill, so there should be nothing stopping you from getting a free case evaluation.
Working with a seasoned Lemon Law attorney can significantly increase your chances of winning your case. We operate on a contingency basis, which means we only get paid if you do. Therefore, we only take on cases that are eligible for lemon compensation. We aren’t going to waste anyone’s time filing a Lemon Law lawsuit if the evidence isn’t there. Working with a lawyer also speeds up the process, requiring less waiting time and making it easier to win the case because the manufacturer takes it more seriously.
Therefore, it makes sense to have a free consultation and see if you are eligible for a lemon lawsuit. If so, you won't have to pay any attorney fees upfront, making it even easier to get the compensation you need. We strive to win Lemon Law cases and will not quit until our clients are satisfied.
Above all, the most significant result of winning a Lemon Law case is that you don’t have to drive a bad vehicle any longer. Depending on the outcome, you’ll either receive a replacement vehicle or the money to purchase a new one.
If you win a Lemon Law case, there are several different outcomes you may be faced with. Your Lemon Law attorney helps you decide which of these options is best for you.
One of the more common conclusions is vehicle replacement. Your new vehicle with a substantial defect is swapped for another of the same manufacturer, same make, and features. It’s also going to be in a similar price range as what you already have, except the new car will be free of defects.
There’s also a chance for a Lemon Law buyback, where the manufacturer takes the car back and gives you a full refund (after mileage offset calculations are figured out). In this refund, you’ll also receive those additional costs we discussed earlier, including the registration fee and sales taxes.
Otherwise, you may be offered a cash settlement as a result of a successful claim. This is the only way that you get to keep your car after winning the case. Basically, the manufacturer pays you for the defect and offers you a cash refund to make up for the inconvenience. The average cash and keep settlement amount can be anywhere from $1,000 to $15,000, but you must be okay with driving the defective car in the future. You may also have to disclose the problems if you attempt to sell the car later, so these are important matters to discuss with your attorney.
Our team at Lemon Pros is highly skilled and dedicated to securing the best possible outcome for your unique situation. Contact us today for a free case evaluation.
In addition to wanting to get out of your defective vehicle, it’s also critical to consider how a Lemon Law claim affects your credit. If you win and get a replacement vehicle, there isn’t usually any change to your credit score since everything is handled by the manufacturer. The loan may need to be converted to a new vehicle, but that won’t require any changes to your score.
However, if part of the settlement includes paying off the existing loan because of a refund, the lender will then close the loan. This can affect your credit score negatively or positively, depending on the situation.
Some people also miss payments while fighting a Lemon Law case, which can hurt their credit score. Sadly, winning the claim won’t remove these negative strikes against your score, so it’s important to keep paying on the car while fighting your case.
Finally, it’s important to ensure you work closely with the manufacturer and creditor through the entire process. If the lender decides to mark the account 'settled' versus 'paid in full,' it could negatively impact your credit score. Before you finalize your settlement, be sure to confirm how the loan closure will be reported.
While the Lemon Law process varies, a typical claim takes three to six months. Some cases are naturally more complex than others and may require additional time. By having your documentation in order and ensuring that your car qualifies as a lemon, you can drastically reduce the claim process time.
There’s a good chance that you will be required to pay taxes, especially if you received a cash settlement. The best way to handle this situation is to reach out to a tax professional. Your expert attorney will walk you through everything you need to think about after the settlement, including finding an accountant.
You don’t have to navigate the outcome of your Lemon Law case alone. A Lemon Law lawyer is available to help you from the beginning of a claim to its conclusion. By securing the compensation you deserve, you no longer have to deal with the dud of a vehicle you’ve been stuck in. A quick settlement will bring you peace of mind.
The Lemon Pros are ready to take on the battle for you, further reducing your stress level. As the best Lemon Law attorney in California, we know how to get compensation for our clients. Because we don’t charge any attorney fees upfront, you can contact us today for a free consultation.
You can find answers to some of the more common inquiries clients have regarding winning a Lemon Law case:
When the manufacturer doesn't agree with the Lemon Law dispute, the case may go to arbitration or court. You’ll need to provide evidence, such as repair records, to support your claim.
The refund is typically based on your purchase price minus a deduction for the miles driven before the first repair attempt. It may also include taxes, fees, attorney's costs, and other expenses that are related to the case.
Yes, in many cases, you can choose a replacement vehicle instead of a buyback, as long as the manufacturer agrees. The replacement should be a comparable model, but it is required to be free of defects.
Keep detailed repair records, report issues quickly, and follow the manufacturer’s warranty process. To maximize the settlement, work with an experienced Lemon Law attorney who gets results.
After settlement, the manufacturer usually takes back the vehicle. It may be resold with a “lemon” title, used for parts, or sent to auction.
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