Average Lemon Law Settlement in California (2024 Updated)

If you purchase or lease a vehicle that seems to have numerous, unrepairable defects despite the number of times you have brought it into the dealership or manufacturer to have the issues addressed, you might have a lemon. These vehicles are not only undependable, they are a financial drain on your pocketbook and can add significant stress to your life. If you decide to file a claim, you may be wondering, “What’s the average Lemon Law settlement in California?”

When a vehicle turns out to be a lemon, you might find yourself paying for costly repairs time and time again on top of ensuring your loan payments are made on time. This can be frustrating, especially if you are unable to drive the car, which is constantly in and out of the shop for repairs. When these situations arise, you have the right as a consumer in the state of California to file a claim for compensation from your lemon vehicle’s manufacturer.

What Makes a Vehicle a Lemon in California?

Under California state law, a lemon is any car, truck, SUV, motorcycle, RV, or other motorized vehicle that fails to meet certain safety and performance requirements. If the vehicle suffers from a certain malfunction that affects its value, use, or overall safety, it might be considered a lemon. However, a lemon is not a vehicle that needs a simple fix.

In order to qualify as a lemon, your vehicle must be in the shop for repairs for what is deemed a “reasonable” number of times without the issue being addressed. The vehicle must also be under warranty coverage, so if your vehicle was purchased through a private seller, it will not meet the requirements outlined in California Lemon Law. This claim must be made either 18 months after the vehicle has been delivered or within the first 18,000 miles driven after delivery.

You might also qualify for a claim under California Lemon Law if your vehicle has been in the shop for continuous repairs for an accumulated amount of time totaling 30 days.

Certain issues that might arise in a lemon vehicle can include:

• Persistent issues with the power steering or transmission
• Failure of the braking system
• Malfunctions with the vehicle’s exhaust system
• Issues in the heating and cooling system
• Defects in the electrical system
• Issues with the suspension system of the vehicle
• Serious safety malfunctions, such as issues with seatbelts and airbags
• Continuous water leaks that lead to breakdowns of the vehicle’s integrity over time

What You Might Be Able to Receive in a Lemon Law Settlement

There are several recoverable damages you might be able to receive in a Lemon Law settlement in the state of California, each one impacting the overall value of your settlement. These damages might include:

• The total balance of your vehicle loan
• Any expenses that can be proven to be a direct result of your vehicle being a lemon, such as rental car costs or tow truck expenses
• The down payment you made on the vehicle and any monthly payments you have made thus far
• Any collateral charges regarding the vehicle, such as sales tax, service contracts, finances charges, and prorated registration

Factors That Can Impact Your California Lemon Law Settlement

In the state of California, the average Lemon Law claim settlement can be influenced by the presence of certain factors in the case. These factors can include the following:

• The Severity of the Defects: If the defects of the vehicle could lead to the serious injury or death of another, this could significantly increase your settlement.
• The Length of Ownership: Settlements can be impacted by how long the vehicle has been owned and the current mileage.
• The Documentation Available: Having certain evidence on hand, such as work order receipts and bills showing the repair work you had done, can help improve the settlement you receive.
• Value of the Vehicle: Your settlement amount will most likely be based on the value of the vehicle.
• Additionally, things like the mileage of the vehicle, the make, model, age, and the original purchase price can all affect the amount of your California Lemon Law settlement.

Lemon Law Settlement FAQs

Q: How Long Does It Take to Settle a Lemon Law Case in California?

A: In the state of California, there is no real way of estimating how long it will take for a Lemon Law claim to reach a satisfactory settlement. This is because there are several factors involved that can affect the overall timeline of the case. These factors can include the complexity of the case, the cooperation of the manufacturer involved, and any litigation that might take place.

Q: What Are Some Common Settlement Outcomes for a Lemon Law Claim in California?

A: In the state of California, there can be many settlement outcomes when it comes to a Lemon Law claim. These can include a vehicle repurchase or refund minus the amount deemed a usage fee for when you were able to safely drive the car, a replacement vehicle, a cash settlement, or receiving an extended warranty for the vehicle.

Q: Are California Lemon Law Settlements Taxable?

A: Yes, in the state of California, according to the Franchise Tax Board of California, any form of compensation received in a Lemon Law claims case can be considered income and, therefore, must be reported on your state income tax form. This can include any cash payments, refunds related to the settlement, or credits made toward related purchases.

Q: What Does It Cost to Retain an Attorney for a Lemon Law Claim?

A: When you work with an attorney from Lemon Law Pro, there are no fees that you will have to worry about. We are here to help you free of charge. Instead, the manufacturer of the vehicle will become liable for all attorney costs and court fees, along with taking accountability for your lemon vehicle and paying out your settlement in whichever form is agreed upon.

Contact a Trusted California Lemon Law Attorney Today

If you or someone you know is suffering with a lemon vehicle in the state of California, know that there are legal options available to you. The Lemon Law attorneys at Lemon Law Pro are available to assist clients statewide in filing their claims for compensation. Contact our offices today to schedule your consultation. Remember, our services are free to you. Not a penny will leave your pocket when you hire an attorney from Lemon Law Pro.