California’s Lemon Law just got more complicated. New amendments now allow some automakers to opt out of arbitration, leaving Independent Dealers potentially responsible for warranty repairs—even when the vehicle wasn’t defective at the time of sale.
These changes could impact how—and whether—certain manufacturers support dealers on resolved vehicles.
Key Updates:
Written Notice Requirement: Effective April 1, 2025, consumers must provide manufacturers with a written notice at least 30 days before initiating a lawsuit for civil penalties. This notice should include the consumer's details, Vehicle Identification Number (VIN), a summary of the vehicle's issues and repair history, and a request for repurchase or replacement. bowmanandbrooke.com
Statute of Limitations: The period during which consumers can file a Lemon Law claim has been reduced to six years from the vehicle's delivery date, irrespective of the warranty's duration. McMillan Law Group+6CalMatters+6The Santa Barbara Independent+6
Used Vehicle Coverage: A recent California Supreme Court ruling has determined that used vehicles with an unexpired manufacturer's warranty are no longer eligible for Lemon Law remedies unless a new car warranty was issued at the time of sale, such as with Certified Pre-Owned (CPO) vehicles. Law Firm Newswire
Why it matters:
Automakers may no longer be obligated to honor warranties
Dealers could face legal disputes directly
Staying current is key to protecting your business
Proactive Measures for Dealers:
To navigate these changes effectively, consider implementing the following strategies:
Enhanced Transparency: Clearly communicate warranty terms, coverage limitations, and the implications of recent Lemon Law changes to potential buyers. This fosters trust and reduces the likelihood of disputes.
Detailed Vehicle Inspections: Conduct comprehensive inspections of used vehicles before sale. Providing customers with thorough reports can mitigate concerns and demonstrate commitment to quality.
Robust Record-Keeping: Maintain meticulous records of all vehicle repairs, customer communications, and warranty details. Organized documentation is invaluable in resolving potential disputes efficiently.McMillan Law Group
Staff Training: Educate your sales and service teams about the recent legal changes to ensure consistent and accurate information is conveyed to customers.
Want the full breakdown?
Read the in-depth legislative analysis on page 8-9 in the latest issue of The Independent Quarterly Magazine.
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👉 Read it now in the March 2025 Issue →
