Wirtz Law Blog

If you bought or leased a defective vehicle in California, you may be entitled to compensation under the state’s lemon law. However, with recent changes to the law, effective July 1, 2025, many consumers are confused about whether they can still receive a buyback or replacement for their faulty car. While lawmakers lessened some important consumer protections with the new law, the core rights of consumers remain intact.

Understanding what compensation is available, how to pursue a claim, and how legal changes could impact your case is essential for anyone dealing with an unreliable vehicle. If you believe your car qualifies as a lemon, you can still take action and hold the manufacturer accountable for selling you a defective vehicle.

What Compensation Can You Recover in a California Lemon Law Claim?

California’s lemon law requires manufacturers to provide compensation if they fail to fix a vehicle defect after a reasonable number of repair attempts while the car is still under warranty. The law gives consumers two primary options for compensation:

• A Buyback (Refund). The manufacturer must repurchase the vehicle and reimburse you for the purchase price, taxes, fees, and other related expenses.
• A Replacement Vehicle. The manufacturer must offer a comparable replacement vehicle that does not have the same defects.

In addition to these remedies, you may be entitled to additional compensation for costs associated with the defective vehicle.

Types of Compensation Available in a Lemon Law Case

A successful lemon law claim can help recover several out-of-pocket expenses related to the faulty vehicle.

Vehicle Buyback or Replacement

If your car qualifies as a lemon, the manufacturer must either repurchase it or provide a replacement vehicle. A buyback includes a full refund of the purchase price, covering taxes, fees, and any registration costs paid to the DMV. There is a mileage offset for “good” miles driven before the defect first manifested and was presented. Additionally, you will be reimbursed for any down payments and monthly loan payments made before filing the claim and for all amounts still owing under your financing agreement. If you choose a replacement vehicle, the manufacturer must provide one of comparable value and model to the defective car. The replacement must be free of undisclosed defects and meet the same performance and safety standards as the original vehicle. Replacements can be difficult to accomplish because many older vehicles are no longer available for a swap.

Incidental Expenses

Owning a defective car often leads to expenses beyond the initial purchase price. If you qualify for lemon law compensation, you may also be reimbursed for additional out-of-pocket costs. This can include towing fees if your vehicle broke down and needed transport to a repair facility, as well as rental car expenses incurred while waiting for repairs or during lemon law proceedings. Additionally, if you paid for repairs related to a warranty-covered defect, you may be eligible to recover those out-of-pocket costs as part of your claim.

Attorney’s Fees and Legal Costs

California’s lemon law includes a fee-shifting provision, which means the manufacturer must pay your attorney’s fees and legal costs when you win your case. This ensures that consumers can take legal action without having to worry about upfront legal expenses. An experienced lemon law firm will take your case on a contingency so you should never have to pay any attorney’s fees, win or lose.

Civil Penalties for Manufacturer Misconduct

In some cases, a manufacturer refuses to honor a valid lemon law claim or intentionally delays the process. If the manufacturer willfully violates the law, they may be required to pay civil penalties of up to two times the amount of the consumer’s actual damages. The new law requires written notice to the manufacturer before civil penalties can be recovered.

Can You Still File a Lemon Law Claim With the New Changes?

Despite the pending legal revisions, California’s lemon law still protects consumers who purchased a defective vehicle under warranty. However, the new rules could make it harder to file claims or limit the time available to pursue compensation. For example, you now have only 1 year from the expiration of an applicable warranty to file a claim, but in no event longer than 6 years from delivery of the vehicle to you.

The most important thing consumers can do right now is act quickly. Do not wait to start your claim if you believe you have a lemon. The longer you delay, the more difficult it may be to recover full compensation.

What To Do If You Believe Your Car Qualifies as a Lemon

If your vehicle has serious defects that the manufacturer has not fixed, follow these steps to protect your claim:

• Gather Documentation. Keep records of all repair attempts, receipts, work orders, and communications with the dealership or manufacturer.
• Know Your Warranty Rights. Ensure the original factory warranty covers your car, as Lemon law protections apply only during the warranty period.
• Contact a Lemon Law Attorney. An experienced lemon law attorney can review your case, help you file a claim, and ensure you recover the maximum compensation available.

Filing a lemon law claim may seem straightforward, but automakers often resist repurchasing defective vehicles. Manufacturers have legal teams dedicated to minimizing payouts, delaying claims, or denying valid cases altogether. Without an experienced lemon law attorney, you may receive less compensation than you deserve—or worse, your claim could be rejected entirely.

If you own a defective vehicle, you can still recover compensation under California’s lemon law, but acting quickly is essential. With new legal changes set to take effect, having a skilled attorney is more important than ever.

Don’t Let Changes to the CA Lemon Law Deter You

If you’re dealing with a defective vehicle, you still have rights under California’s lemon law—but time may be running out. With new legal changes taking effect soon, manufacturers may try to delay or deny valid claims. Acting now is critical to securing the compensation you deserve.

At Wirtz Law APC, we fight for consumers facing unreliable vehicles and uncooperative manufacturers. Our experienced team can help you recover a buyback, replacement vehicle, or additional compensation at no upfront cost to you. Call (858) 259-5009 today for a free consultation and take the first step toward holding the automaker accountable.