California Lemon Law Demand Letters
California’s Song-Beverly Consumer Warranty Act provides powerful remedies when your new or certified used vehicle is a lemon. This comprehensive guide explains how to demand a buyback or replacement, when manufacturer’s fees create settlement leverage, and how to maximize your recovery.
California’s Song-Beverly Consumer Warranty Act (Civil Code §§1790-1795.8) is one of the strongest lemon laws in the United States. When a manufacturer cannot repair a substantial defect after a reasonable number of attempts, you are entitled to a refund or replacement vehicle. Understanding when and how to demand this remedy is critical to maximizing your recovery. Our automotive demand letter templates can help you draft an effective letter to assert your rights under California law.
Under California law, a vehicle is presumed to be a lemon if it meets ANY of the following conditions during the first 18 months or 18,000 miles (whichever comes first):
- Four or more repair attempts for the same substantial defect affecting use, value, or safety
- Two or more repair attempts for a defect likely to cause death or serious bodily injury if the vehicle is driven
- 30 or more cumulative days out of service for repair of any warranty defects
Important: These are presumptions, not absolute requirements. You may still have a lemon law claim even if you don’t meet these exact numbers, especially if the defect is severe and the manufacturer has had a reasonable opportunity to repair it.
Not every problem with your car triggers lemon law protection. California courts have held that a defect must “substantially impair” the vehicle’s use, value, or safety. Examples include:
California law requires that the manufacturer be given a “reasonable number of attempts” to repair the defect. While the presumption thresholds (4 attempts, 2 for safety, 30 days) create strong legal leverage, the actual standard is fact-specific and considers:
- Severity of the defect: More dangerous defects require fewer repair attempts
- Number of related problems: Multiple symptoms of the same root cause count as attempts for the same defect
- Good faith of repair efforts: Repeated “no problem found” or “cannot duplicate” may count toward reasonable attempts
- Out-of-service time: Extended delays waiting for parts or diagnostic procedures strengthen your case
In addition to California’s Song-Beverly Act, you may have federal remedies under the Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.). This federal law provides similar protections and can be especially useful if:
- Your vehicle is outside the 18-month/18,000-mile presumption window but still under warranty
- You purchased the vehicle out of state but live in California
- You want to pursue claims in federal court rather than state court
Both laws allow recovery of attorney’s fees, creating strong settlement leverage.
California Civil Code §1795.5 extends lemon law protection to certain used vehicles:
If you purchased a certified used car with a manufacturer’s warranty (not just a dealer warranty), you have lemon law rights if:
- The defect arose during the manufacturer’s warranty period
- The manufacturer had a reasonable opportunity to repair
- The defect substantially impairs use, value, or safety
Key distinction: Only manufacturer-backed warranties qualify. Third-party dealer warranties or extended service contracts do not trigger Song-Beverly lemon law protection (though they may create other breach of warranty claims).
- Modifications and alterations: Aftermarket parts, performance modifications, or lifted suspensions that cause or contribute to the defect
- Accident damage: Problems arising from collisions or other impacts, even if poorly repaired by the dealer
- Abuse or misuse: Off-road damage to a non-off-road vehicle, racing, lack of required maintenance
- Normal wear items: Brake pads, tires, wiper blades (unless failing prematurely due to defect)
- Dealer-only warranties: “As-is” sales or dealer-provided warranties without manufacturer backing
Timing is critical in California lemon law cases. Send your demand letter when:
Many manufacturers sponsor arbitration programs, and some require you to use them before filing a lawsuit. California has certified certain programs as meeting state standards, but you should know:
- You’re not bound by the decision: If the arbitrator rules against you or offers an insufficient remedy, you can still file a lawsuit
- Manufacturers ARE bound: If the arbitrator orders a buyback or replacement, the manufacturer must comply
- Timeline matters: Arbitration can take 60-120 days, during which the statute of limitations continues to run
- Attorney representation is allowed: You can have a lawyer represent you in arbitration, though many consumers proceed on their own
Manufacturer arbitration can work well for straightforward cases with clear documentation. However, if you anticipate the manufacturer will dispute whether the defect is substantial or whether they had adequate repair opportunities, consider consulting a lemon law attorney before entering arbitration. Arbitration creates a record that can complicate later litigation.
If you accept a buyback, California requires the manufacturer to brand the vehicle title as a “Lemon Law Buyback” before reselling it. This protects future buyers but also means:
- The vehicle’s resale value is substantially reduced
- The manufacturer may be motivated to repair and return the vehicle instead of buying it back
- You cannot later undo the buyback and keep the vehicle
California’s buyback formula is designed to make you whole while accounting for your use of the vehicle:
Total Refund = Purchase Price – Mileage Offset
Mileage Offset = (Miles driven before first repair attempt ÷ 120,000) × Purchase Price
Purchase Price includes: Vehicle purchase price, sales tax, license and registration fees, manufacturer-installed options, finance charges paid to date
Purchase Price does NOT include: Aftermarket accessories, extended warranties, insurance, dealer prep fees (usually)
Example: You bought a car for $40,000 and drove 8,000 miles before the first repair attempt. Your mileage offset is (8,000 ÷ 120,000) × $40,000 = $2,667. Your refund would be $40,000 – $2,667 = $37,333, plus you get back any down payment, and the manufacturer pays off your loan.
When you send a lemon law demand letter, the manufacturer’s response typically follows predictable patterns. Understanding these defenses helps you anticipate pushback and strengthen your position.
Manufacturers and their attorneys typically assert one or more of the following defenses:
Most lemon law cases settle before trial. Manufacturers use several negotiation strategies:
The manufacturer offers you a cash payment (often $2,000-$10,000) to keep the vehicle and release all claims. This can make sense if:
- The defect has been genuinely fixed and you’re satisfied
- You’re outside the presumption period and your case has some risk
- You want to avoid the time and hassle of a full buyback process
Warning: Carefully evaluate whether the cash amount adequately compensates for diminished resale value, your time and frustration, and the risk the problem will return after the settlement.
The manufacturer offers a buyback but argues for a higher mileage offset or disputes what’s included in the purchase price. Common disputes:
- Whether registration fees and sales tax are included
- How to handle trade-in value vs. cash down payment
- Whether dealer-installed accessories count
- Calculation of finance charges paid to date
These disputes often come down to negotiation and statutory interpretation. California law generally favors consumers on these issues.
The manufacturer offers a comparable replacement vehicle instead of a refund. This can be attractive if:
- You like the make and model, just not this particular lemon
- Current interest rates are higher than your existing loan rate
- The replacement is truly comparable or better in features and trim
Watch out for manufacturers trying to substitute a lower trim level or model year. The replacement must be truly comparable in value.
Some manufacturers have policies of forcing lemon law claims into litigation or arbitration, betting that consumers will give up or accept lowball offers. If the manufacturer refuses a reasonable settlement:
If your lemon has a serious safety defect (brakes, steering, airbags, sudden acceleration), do NOT continue driving it just to build your case. Your safety is paramount. Document the defect thoroughly, but do not put yourself or others at risk.
If you must stop driving the vehicle, notify the manufacturer in writing that the vehicle is undrivable due to the safety defect and demand they arrange for towing and a loaner vehicle.
Be prepared for manufacturers to delay resolution through various means:
- Requesting extensive documentation: Asking for records you’ve already provided, or demanding irrelevant information
- Scheduling distant inspection dates: Requiring you to bring the vehicle for inspection weeks or months out
- Offering one more repair attempt: Promising “a new fix from engineering” after multiple failed repairs
- Claiming review by regional or corporate teams: Stating that various levels of management must approve any buyback
While some delay is inherent in large corporate processes, excessive stalling may support a “willful violation” claim. Document all delays and keep pushing for resolution.
Strong documentation is the foundation of every successful lemon law case. The more organized and complete your evidence, the faster you’ll reach a favorable settlement.
Create a clear summary table of all repair attempts for the defect. This makes it easy for the manufacturer (or arbitrator/judge) to see the pattern:
| Date | Mileage | Days Out of Service | Customer Complaint | Dealer Action | Problem Resolved? |
|---|---|---|---|---|---|
| 3/15/2024 | 1,847 | 3 | Engine stalls at idle | Reflashed ECU, test drive OK | No – stalling continued |
| 4/22/2024 | 3,201 | 5 | Engine still stalling | Replaced throttle body | No – stalling continued |
| 5/30/2024 | 4,592 | 7 | Ongoing stalling issue | Replaced fuel pump, no problem found on test | No – stalling continued |
| 7/8/2024 | 6,018 | 12 | Engine stalling worsening | Awaiting parts from manufacturer, extended diagnostic | No – problem persists |
This example shows: 4 repair attempts over 4 months, 27 cumulative days out of service, and an ongoing safety-critical defect. This is a strong lemon law case.
- Exaggerations or inaccuracies: Claiming 6 repair attempts when you had 4 destroys your credibility. Stick to provable facts.
- Unrelated complaints: Don’t mix legitimate warranty defects with minor annoyances or normal wear items. Focus on the substantial defect.
- Evidence of modifications: If you’ve modified the vehicle, don’t highlight this. The manufacturer will use it to argue you caused the defect.
- Social media rants: Angry Facebook posts or tweets may undermine your credibility and show bias. Keep your demand letter professional.
- Threats or ultimatums: Don’t threaten to “sue for millions” or “report them to the Attorney General.” State your rights calmly and professionally.
In your demand letter, include language directing the manufacturer to preserve all documents, repair records, technical service bulletins, and internal communications related to your vehicle and the defect. This is critical for potential litigation discovery.
Example: “You are hereby directed to preserve all documents, electronic records, repair orders, communications, technical service bulletins, and other materials related to my vehicle (VIN: XXXXX) and the defects described herein. This includes all communications with dealerships, engineers, and customer service representatives.”
If possible, offer to demonstrate the defect to the manufacturer’s representative. For intermittent problems, this can be powerful evidence:
- Video recordings: Capture the defect happening in real-time with date/time stamps visible
- Passenger witnesses: Have family members or colleagues document experiencing the defect
- Dealer test drives: Insist that service advisors test drive the vehicle with you to experience the problem firsthand
- Data logs: Some defects can be proven through vehicle computer logs—ask if the dealer can pull diagnostic data
Problem: You verbally reported the defect several times but it’s not on early repair orders.
Solution: In your demand letter, note: “I reported the [defect] on multiple occasions starting with my [date] service visit, though the written repair order may not reflect this. The defect first manifested at approximately [mileage].”
Problem: Some repair visits were to a different dealer or an independent shop.
Solution: Gather repair orders from all facilities. Repairs at authorized dealers carry more weight, but independent shop records can support your timeline.
Problem: You didn’t keep all your repair orders.
Solution: Request copies from the dealer service department. Under California law, dealers must maintain repair records and provide copies to customers upon request.
California lemon law cases typically settle before trial, often before a lawsuit is even filed. Understanding realistic outcomes helps you evaluate settlement offers and decide whether to accept or push forward.
Full Buyback (Most Common for Strong Cases): The manufacturer repurchases the vehicle for the full purchase price minus a mileage offset calculated as (miles before first repair attempt ÷ 120,000) × purchase price. This typically happens when:
- You meet or exceed the presumption thresholds (4 attempts, 2 for safety defects, or 30 days out of service)
- The defect is well-documented and clearly substantial
- You have attorney representation with credible threat of litigation
Replacement Vehicle: The manufacturer provides a comparable new vehicle instead of a refund. This is more common when:
- You express willingness to accept a replacement during negotiations
- The manufacturer has excess inventory of comparable models
- Your defective vehicle can be easily resold after branding
Cash and Keep Settlement: You receive $2,000-$15,000 to keep the vehicle and release all claims. This typically happens when:
- Your case is borderline (fewer repair attempts, outside presumption period)
- The defect has been genuinely fixed in recent repairs
- You prefer quick cash resolution over buyback hassle
California Civil Code §1794 provides that prevailing consumers are entitled to recover reasonable attorney’s fees and costs. This creates enormous settlement pressure on manufacturers because:
When you hire an experienced lemon law attorney, manufacturers know they face significant fee exposure. A case that might cost them $25,000 in buyback could cost $75,000+ total with attorney’s fees and costs. This is why attorney-represented cases often settle within 60-90 days of the demand letter, while unrepresented consumers may wait months or face lowball offers.
Purchase price: $45,000 (including taxes, fees, and registration)
Miles before first repair attempt: 523 miles
Current mileage: 4,200 miles
Mileage offset: (523 ÷ 120,000) × $45,000 = $196.13
Refund amount: $45,000 – $196 = $44,804
What happens to the loan: The manufacturer pays off your remaining loan balance directly, and you receive the difference between the refund amount and the loan payoff. If you owe $40,000, you’d receive $4,804 in cash.
Purchase price: $35,000
Miles before first repair attempt: 8,400 miles
Current mileage: 18,000 miles
Mileage offset: (8,400 ÷ 120,000) × $35,000 = $2,450
Refund amount: $35,000 – $2,450 = $32,550
Purchase price: $28,000 (certified used with manufacturer warranty)
Miles before first repair attempt: 22,400 miles (vehicle had 18,000 miles at purchase)
Current mileage: 31,000 miles
Mileage offset: (4,400 miles driven ÷ 120,000) × $28,000 = $1,026.67
Refund amount: $28,000 – $1,027 = $26,973
- Demand letter to manufacturer response: 10-30 days
- Initial settlement negotiations: 30-60 days from demand
- Buyback processing (if settled): 30-60 days from settlement agreement
- Arbitration (if required): 60-120 days from filing arbitration request
- Lawsuit filing to settlement: 4-8 months (most settle before trial)
- Trial (if case doesn’t settle): 12-24 months from filing
Key takeaway: Attorney-represented cases typically settle within 90-180 days of the demand letter. Unrepresented consumers often face longer timelines and lower settlement offers.
California lemon law claims must be filed within 4 years of the date you discovered (or should have discovered) the defect. However, waiting too long weakens your case practically, even if you’re within the statute of limitations. Send your demand letter as soon as you meet the presumption thresholds or conclude the manufacturer cannot fix the defect.
Use these professionally drafted templates as starting points for your lemon law demand letters. Customize with your specific vehicle information, repair history, and demands.
I represent consumers in California lemon law cases throughout the state. My practice focuses on maximizing your recovery while minimizing your hassle and out-of-pocket costs.
Case Evaluation: I start by reviewing your purchase documents, all repair orders, and warranty information to assess whether you have a strong lemon law claim. I look for the presumption thresholds, evaluate the substantiality of the defect, and identify any manufacturer defenses.
Demand Letter and Negotiation: I draft a comprehensive demand letter that establishes your legal rights, quantifies the buyback amount, and creates settlement pressure through the attorney’s fees provision. Most of my cases settle within 60-90 days of the demand letter because manufacturers know they face significant fee exposure if they force litigation.
Arbitration and Litigation: If the manufacturer refuses reasonable settlement, I handle arbitration (if required) or file a lawsuit in California Superior Court. I take cases through trial when necessary, though most settle before trial once the manufacturer faces depositions and discovery costs.
Maximum Recovery: My goal is to secure the full statutory buyback (purchase price minus fair mileage offset) plus reimbursement of your incidental costs, and to recover my attorney’s fees from the manufacturer rather than from your recovery.
California’s attorney’s fees provision creates a unique dynamic: manufacturers face potentially unlimited fee exposure if they deny a valid claim and force litigation. When I represent you, manufacturers know they cannot simply wait you out or make a lowball offer hoping you’ll give up.
Data shows that attorney-represented lemon law claimants recover 30-50% more on average than unrepresented consumers, and cases settle 2-3x faster. The manufacturer pays my fees separately, so you typically receive your full buyback amount without any deduction for legal fees.
After you contact me, I’ll ask you to send:
- Your purchase contract and buyer’s order
- All repair orders (even for unrelated issues)
- Warranty documentation
- Any correspondence with the dealer or manufacturer
- A brief timeline of the defect and repair attempts
I review these documents to assess claim strength, identify the best legal theories, and determine whether I can take your case on contingency or what fee structure makes sense.
Once retained, I draft and send a detailed statutory demand letter to the manufacturer. The letter:
- Establishes your rights under the Song-Beverly Consumer Warranty Act
- Documents the repair history and defect
- Calculates the precise buyback amount
- Warns of attorney’s fees and civil penalty exposure
- Provides a deadline for response and settlement
Most manufacturers respond within 30 days, either offering settlement or requesting additional documentation. I handle all negotiation and push for full statutory recovery.
If the manufacturer refuses fair settlement, I file arbitration (if required by your purchase contract) or lawsuit in California Superior Court. This phase involves:
- Formal pleadings and discovery (document requests, depositions)
- Vehicle inspection by manufacturer’s expert
- Motion practice and settlement conferences
- Trial preparation (most cases settle before trial)
Timeline: 6-12 months from filing to trial date, though most settle within 4-6 months once discovery begins.
If you believe you have a California lemon law case, I can help you evaluate your options and determine the best strategy for maximum recovery. Use the Calendly link below to schedule a case evaluation call, or email me directly at owner@terms.law with your repair history and vehicle details.
Schedule Lemon Law ConsultationCalifornia creates a legal presumption that the manufacturer had a reasonable opportunity to repair if: (1) four or more repair attempts for the same defect, (2) two or more attempts for a serious safety defect likely to cause death or serious injury, or (3) the vehicle is out of service for 30 or more cumulative days. However, you may still have a valid claim with fewer attempts if the defect is severe and the manufacturer clearly cannot fix it.
Repair attempts at the manufacturer’s authorized dealerships carry the most weight. However, repairs at independent shops can still support your timeline and prove the defect exists, especially if the dealer was unable to fix the problem and you sought help elsewhere. For the statutory presumptions, dealership repair attempts are what count.
Yes, unless the defect is a serious safety issue (brakes, steering, airbags). If it’s unsafe to drive, notify the manufacturer in writing that the vehicle is undrivable and demand a loaner. For non-safety defects, you can continue driving, but the miles you accumulate will factor into the mileage offset calculation if you ultimately get a buyback.
Lemon law protections apply equally to financed, leased, and cash purchases. For financed vehicles, the manufacturer pays off your loan and refunds the difference between the buyback amount and the loan balance. For leased vehicles, the manufacturer must make you whole for all payments made, and you’re not liable for remaining lease payments or the residual value.
With attorney representation, most cases settle within 60-120 days of the initial demand letter. If arbitration is required, add 60-90 days. If litigation is necessary, expect 6-12 months from filing to resolution, though most settle before trial. Unrepresented consumers often face longer timelines and more delays.
You receive the full purchase price (including tax, title, license fees) minus a mileage offset based on miles driven before the first repair attempt. The formula is: (miles before first repair ÷ 120,000) × purchase price. If you drove very few miles before the defect appeared, the offset is minimal. Additionally, the manufacturer pays off your loan, reimburses incidental costs (rentals, towing), and pays attorney’s fees separately.
Your down payment is fully refunded as part of the buyback. Your monthly payments are factored into the loan payoff—the manufacturer pays off the remaining loan balance, and you receive the difference between the net buyback amount and the payoff. You don’t lose the payments you’ve already made; they’ve reduced your loan balance, which affects how much cash you receive at buyback.