Wirtz Law Blog

Most people shopping for a new vehicle face the age-old question: New or used? Yet this question isn’t always as simple as it appears. Drivers have multiple options for “used” vehicles, and some of these options can be a cost-effective way to drive a vehicle that is nearly new. 

“Used” vehicles come in many forms. Another family, household, or small business may have owned a used vehicle. A dealership employee may have driven it for a short time. The dealership may have used it as a loaner or a demonstration vehicle before going up for sale. 

Vehicles that began their lives as loaners can be an excellent choice for a buyer who wants the reliability and features of a new vehicle but without the new vehicle’s price tag. Many loaners come with the same protections as a new or certified pre-owned (CPO) vehicle 一 including the protection of California lemon law if something is wrong with the car after purchase. 

Why You Should Buy or Lease a Southern California Dealer Vehicle

A loaner vehicle is typically made available for sale after the dealership has loaned it to other drivers while their vehicle was being serviced. A demonstrator vehicle is used to allow other drivers to test-drive the vehicle before buying a comparable new one. The benefits of buying or leasing a dealer loaner or demonstrator include:

• Light wear and low mileage. Most loaners are offered for sale before they reach 10,000 miles on the odometer. Some have as few as 3,000 miles on them. These vehicles are often indistinguishable from new vehicles, save for the number of miles on the odometer.
• Dealership oversight. Loaner vehicles have never belonged to a private owner. Instead, the dealership has kept an eye on them for their entire brief life of use on the road. Most dealers put tight restrictions on their use and check for dents, scratches, and blemishes every time it is loaned out. These vehicles typically receive the same cleaning, service, and consideration that vehicles receive on the lot or when being serviced at the dealership. 
• Robust features. While loaner vehicles are typically basic vehicles with limited options added, a demonstration car can be fully loaded to show vehicle buyers the latest features the automaker offers. As a result, these cars aren’t stripped-down versions of their new counterpart, as they are the same vehicle with all the same features. 

One more reason many purchasers prefer dealer loaners is that these vehicles typically come with an original warranty or a certified pre-owned (CPO) warranty. These forms of protection qualify the vehicle and its owner for protection under California’s lemon law. 

Southern California Dealer Loan Vehicles and California’s Lemon Law

California’s lemon law protects vehicle owners who buy their vehicles “at retail” – from a dealership or directly from a manufacturer. To qualify for lemon law protection, the vehicle must be under an original warranty or a CPO warranty when the problems begin. The issues with the vehicle cannot be the result of abuse or misuse of the vehicle, and the automaker must receive notice and a reasonable number of attempts to fix the problem. In most cases, reasonable repair attempts can be met by bringing the vehicle to the dealership for a fix. 

California’s lemon law focuses on vehicles that drivers purchase new from dealerships or automakers and on vehicles sold under a certified pre-owned (CPO) warranty. However, the rules apply to loaner vehicles as well. Many dealerships include their loaner vehicles in their CPO inventory. The fact that a loaner vehicle has never had a separate private owner does not disqualify these vehicles from protection under lemon law if lemon law would otherwise apply. 

It is possible for a loaner vehicle purchase to be a lemon. While loaners have been driven before a vehicle owner buys them, problems with the vehicle may not have become obvious during those short trips. 

It is important to have any issue with a vehicle checked out by the dealership as soon as possible. Doing so starts the clock running on the “reasonable repair attempts” required by California lemon law. It also helps protect you and your loved ones by ensuring that vehicle problems are addressed promptly. 

Not sure if your loaner purchase is covered by an original or CPO warranty or where to look for your warranty information? An attorney can help. Schedule a free consultation to ask questions and learn more about how California’s lemon law might apply to your vehicle. 

Where to Turn for Help

If you’re facing problems with a recently purchased vehicle, talk to the experienced California lemon law attorneys at Wirtz Law APC today. We’ll answer your questions and help you understand your available options. Reach out to us today to schedule a free, confidential consultation.