📋 Auto Warranty Denial Claims in California
California's Song-Beverly Consumer Warranty Act provides powerful protections for consumers when manufacturers and dealers fail to honor warranties. If your warranty claim was wrongfully denied, you may be entitled to the cost of repairs, civil penalties of up to two times your damages, and all attorney's fees and costs.
Common Warranty Denial Scenarios
🚫 Wrongful Denial
Warranty claim denied despite defect being covered, claiming "customer abuse" or "maintenance neglect" without evidence
🕒 Delay Tactics
Unreasonable delays in approving repairs, parts "on backorder" indefinitely, repeated inspections without repair
📄 Improper Exclusions
Claiming defect is a "wear item" when it's premature failure, misreading warranty terms, adding exclusions not in original warranty
🔧 Failed Repairs
Multiple unsuccessful repair attempts for the same problem, creating new problems during warranty work
👍 What You Can Recover
- Cost of repairs - Amount you paid for repairs that should have been covered
- Civil penalty - Up to 2x damages if denial was willful
- Attorney's fees - Prevailing plaintiffs recover all legal fees
- Replacement/Refund - For lemon law cases, full buyback or replacement vehicle
- Incidental damages - Rental cars, towing, lost wages
Types of Warranty Claims
🚫 Express Warranty Denial
▼Express warranties include the manufacturer's new car warranty, certified pre-owned warranties, and extended service contracts. When a dealer or manufacturer denies a claim under these warranties without proper justification, you have a breach of express warranty claim. Common wrongful denials include blaming "abuse" without evidence, claiming the defect isn't covered when it clearly is, or stating the vehicle is "out of warranty" when it's not.
📝 Implied Warranty Claims
▼Even without an express warranty, California's Song-Beverly Act provides implied warranties of merchantability. Used cars sold by dealers must be fit for their ordinary purpose for a reasonable period (typically 30-90 days for basic reliability). If your used car breaks down shortly after purchase due to a pre-existing defect, you may have an implied warranty claim.
🚗 Lemon Law Claims
▼Under the Song-Beverly "Lemon Law," if your new vehicle has a substantial defect that cannot be repaired after a reasonable number of attempts (typically 2 attempts for safety defects or 4 attempts for other defects, or 30+ days out of service), you're entitled to a refund or replacement. Manufacturers often deny lemon law claims hoping consumers will give up.
💰 Civil Penalty Claims
▼If the manufacturer's warranty denial was "willful" - meaning they knew the claim was valid and denied it anyway - you can recover civil penalties of up to two times your actual damages. This is designed to punish manufacturers who wrongfully deny claims hoping consumers won't fight back.
⚠ Get Denials in Writing
Always request written documentation of any warranty denial, including the specific reason given. Verbal denials are harder to prove. If the dealer won't provide written documentation, send an email summarizing the conversation and asking them to confirm or correct your understanding.
⚖ Legal Basis
Auto warranty denial claims in California primarily rely on the Song-Beverly Consumer Warranty Act (California's Lemon Law) and the federal Magnuson-Moss Warranty Act.
Key California and Federal Laws
Song-Beverly Consumer Warranty Act (Civil Code 1790-1795.8)
California's comprehensive warranty protection law. Covers express and implied warranties, provides civil penalty of up to 2x damages for willful violations, and mandates attorney's fees for prevailing consumers. Applies to new and used vehicles sold by dealers.
Civil Code Section 1794(c) - Civil Penalty
If a manufacturer's warranty violation was willful, the court shall award a civil penalty of up to two times the amount of actual damages. "Willful" means the manufacturer knew the denial was improper.
Civil Code Section 1794(d) - Attorney's Fees
Consumers who prevail on Song-Beverly claims recover reasonable attorney's fees and costs. This one-way fee shifting makes it economically viable to hire an attorney even for smaller claims.
Magnuson-Moss Warranty Act (15 U.S.C. 2301-2312)
Federal warranty law supplementing state protections. Allows claims in federal court for amounts over $50,000 (with class actions) and provides attorney's fees. Often used alongside Song-Beverly claims.
Elements by Claim Type
🚫 Warranty Denial
Valid warranty exists; defect is covered; manufacturer/dealer denied claim; denial was improper.
🚗 Lemon Law (Refund)
Substantial defect exists; reasonable repair attempts failed; defect impairs use, value, or safety.
💰 Civil Penalty
All warranty claim elements; plus manufacturer's violation was "willful."
💡 Manufacturer vs. Dealer Liability
For new vehicles, the manufacturer is primarily liable for warranty obligations. However, dealers can also be liable if they independently deny valid warranty claims or fail to properly report defects. For used vehicles sold with dealer warranties, the dealer is directly liable.
✅ Evidence Checklist
Gather these documents before sending your demand letter.
📄 Purchase Documents
- ✓Purchase contract/bill of sale
- ✓Warranty documents
- ✓Extended warranty contract (if any)
- ✓Window sticker/Monroney label
🔧 Repair Records
- ✓All repair orders/invoices
- ✓Denial letters/documentation
- ✓Service appointment records
- ✓Out-of-pocket repair receipts
💬 Communications
- ✓Emails with dealer/manufacturer
- ✓Text messages
- ✓Notes of phone conversations
- ✓Customer service case numbers
📈 Damage Documentation
- ✓Rental car receipts
- ✓Towing receipts
- ✓Lost wages documentation
- ✓Photos/videos of defect
💰 Calculate Your Damages
| Category | Description |
|---|---|
| Repair Costs | Amount paid for repairs that should have been covered |
| Rental Car | Transportation costs while vehicle was being repaired/unusable |
| Towing | Towing costs due to breakdown |
| Lost Wages | Time missed from work dealing with repair issues |
| Civil Penalty | Up to 2x actual damages if violation was willful |
| Attorney's Fees | All reasonable attorney's fees and costs (if you hire an attorney) |
📊 Sample: Denied Transmission Repair Claim
💡 Lemon Law Buyback Formula
For full lemon law buybacks, you're entitled to: purchase price + taxes/fees + incidental damages - usage offset. The usage offset is calculated as: (miles at first repair attempt / 120,000) x purchase price. For example, a $40,000 car with 10,000 miles at first attempt has a usage offset of only $3,333.
📝 Sample Language
🚀 Next Steps
If They Do Not Respond
- Consult a Lemon Law Attorney - Most work on contingency with no upfront cost, and attorney's fees are paid by the defendant.
- File BBB Auto Line Complaint - Many manufacturers require BBB arbitration before litigation.
- Document Everything - Continue keeping records of all defects, repair attempts, and communications.
- File Lawsuit - Song-Beverly claims have a 4-year statute of limitations from the warranty denial.
🚨 Don't Wait to Take Action
Evidence can be lost, witnesses can forget, and the statute of limitations continues to run. Manufacturers count on consumers giving up. The fact that you're entitled to attorney's fees means lawyers will take your case on contingency - you pay nothing unless you win.
Need Legal Help?
Lemon law and warranty attorneys work on contingency. You pay nothing unless you win, and attorney's fees are paid by the manufacturer.
Free Case EvaluationResources
- CA Dept. of Consumer Affairs: dca.ca.gov - Lemon law information
- BBB Auto Line: bbb.org/autoline - Manufacturer arbitration
- CA State Bar: calbar.ca.gov - Find a lemon law attorney