How California's New 2024 Lemon Car Law Bill May Impact Buyers

California has long been a leader in consumer protection, and its new 2024 "Lemon Car Law" bill represents another significant step in protecting car buyers from faulty vehicles. Assembly Bill 1755, which was signed into law in September and will take effect in April 2025, strengthens the rights of consumers who purchase new or used vehicles that turn out to have significant mechanical defects or safety issues. 

It aims to provide more clarity, a faster resolution process, and better compensation for buyers who find themselves stuck with what's commonly known as a "lemon." This new legislation has the potential to change car buying and selling in California, providing buyers with better tools to hold manufacturers and dealerships accountable. 

But how will this new law actually impact car buyers? At the Law Offices of Kevin Faulk, we aim to assist clients in Sunnyvale, California, and throughout the state who have been impacted by defective vehicles. Here's what you need to know about AB 1755.

What Is Assembly Bill 1755?

In its original form, California's lemon law required manufacturers to replace or repurchase a defective vehicle if it had a substantial defect that significantly impaired its use, value, or safety, and if the defect wasn't repaired after a series of repair attempts. However, the 2024 bill expands upon this, addressing both procedural issues and consumer rights to make the process more favorable to buyers.

The 2024 law makes a few key changes to existing provisions. These changes focus on making sure that both new and used car buyers are better protected, the timeframe for determining when a vehicle qualifies as a "lemon" is more straightforward, and the penalties for manufacturers who fail to comply with the law are more significant.

Let’s break down some of the key provisions of the new bill and explore how they may affect California car buyers.

Broader Definition of Defects

Under the previous iteration of the lemon law, the term "defect" was often associated with mechanical issues. However, California's 2024 lemon law bill significantly broadens the scope of what constitutes a lemon. 

The new law includes defects that affect the safety, value, or functionality of the vehicle, and it covers not just mechanical failures but also recurring issues with the vehicle’s electrical, safety, or autonomous driving features.

For instance, a malfunction in the car’s automated emergency braking system or issues with its airbag system—two technologies that are becoming more ubiquitous in modern cars—could now qualify under the lemon law if the problem isn't resolved after a reasonable number of repair attempts. 

For consumers, this is a major victory. It means that any serious defect, whether in the engine, transmission, or even the car’s tech features, could lead to a vehicle being declared a lemon.

Shortened Timeframe for Lemon Status

One of the most significant changes in the 2024 bill is a reduction in the time it takes for a car to be considered a lemon. In the past, California's lemon law required consumers to endure a certain number of repair attempts or a prolonged period of inoperability before a vehicle could qualify as a lemon. 

The new law streamlines this process by reducing the number of repair attempts required and the amount of time a vehicle must be in the shop before it's deemed unfit for use. Specifically, if a car is out of service for more than 30 days cumulatively within the first 18 months or 18,000 miles (whichever comes first), it can be automatically classified as a lemon.

For consumers, this is a welcome change. It means that if a car has to undergo lengthy or frequent repairs within a short period, buyers may have a faster route to getting a replacement vehicle or a refund. This change helps prevent the frustration of being stuck with a car that’s continuously unreliable, offering a quicker path to resolution.

Enhanced Consumer Compensation

Under the new law, if a car is found to be a lemon, the manufacturer must either replace it with a new vehicle of equivalent value or provide a full refund to the buyer. In the case of a refund, the manufacturer must also reimburse the buyer for taxes, fees, and other costs associated with the purchase. 

Additionally, the new bill mandates that car buyers be compensated for any incidental costs they incur due to the defective vehicle, including rental car fees, towing costs, or missed work.

Moreover, if a manufacturer fails to comply with the lemon law, the new legislation increases the financial penalties for noncompliance. The law mandates that manufacturers pay consumers a higher amount in "civil penalties" for each violation of the lemon law, effectively raising the stakes for automakers who don't honor their obligations under the law.

Protection for Used Car Buyers

While California's original lemon law applied primarily to new vehicles, the 2024 law offers expanded protections for used car buyers as well. Under the new bill, used cars sold with warranties are now covered by the lemon law in a way that they weren't before. 

This change is especially important for consumers who may not have the same level of confidence when purchasing used vehicles, especially those with limited or no warranty coverage.

For buyers of used cars, this means that if a vehicle has a defect that substantially impairs its use or safety and the problem can't be fixed after a reasonable number of attempts, the buyer is entitled to a refund or a replacement vehicle. 

This protection applies regardless of whether the used vehicle is sold by a private party or a dealership, so long as it meets the criteria established in the law. The new law also extends its reach to auto dealerships. 

Dealer Accountability

In the past, buyers who purchased a defective car from a dealership often had difficulty holding the dealer accountable for defects that fell under the lemon law, particularly when the car was sold "as-is" or with limited warranties. 

The 2024 law mandates that dealers must disclose any known defects in a vehicle before the sale. If a dealership sells a defective car that later qualifies as a lemon, the dealer could be held responsible for part of the refund or replacement cost.

This provision is a big win for consumers, as it prevents dealerships from simply passing off defective cars onto unsuspecting buyers. By requiring more transparency in the selling process, the bill aims to discourage deceptive practices in used car sales, thereby creating a more buyer-friendly marketplace.

Increased Transparency in the Process

The bill also enhances the transparency of the lemon law process itself. Consumers who are dealing with defective cars will have clearer guidance on how to proceed with a claim, including the documentation required, timelines for resolution, and what they can expect during the process. 

This greater clarity is intended to reduce the confusion that many car buyers have historically faced when trying to work through lemon law claims.

The law also mandates that manufacturers must provide buyers with a clear breakdown of their rights under the lemon law at the time of purchase. This helps to make sure that consumers are fully informed of the legal protections available to them, potentially preventing issues before they arise.

How the 2024 Lemon Law Will Impact Buyers

The most immediate and obvious impact of the 2024 lemon law is stronger consumer protections, but there are several other ways AB 1755 will affect buyers.

Better Consumer Protection

Whether a buyer purchases a new or used car, they'll now have greater assurance that they won't be stuck with a defective vehicle. The law’s expanded coverage of safety and tech-related defects, along with faster resolutions, makes it easier for buyers to assert their rights if something goes wrong.

Faster and Fairer Claims Process

The reduction in the number of repair attempts required and the shorter timeline for lemon qualification means that consumers will no longer be forced to wait for months while their car is repaired multiple times. 

In the past, some consumers found themselves entangled in prolonged disputes with manufacturers. With these new guidelines, the process is designed to be faster, clearer, and less burdensome.

Increased Accountability for Dealers and Manufacturers

With increased penalties and clearer responsibilities for dealerships and manufacturers, consumers can expect a higher level of accountability from all parties involved in the sale of the vehicle. If a car qualifies as a lemon, the manufacturer or dealer will have a greater incentive to resolve the issue quickly to avoid costly penalties.

Assembly Bill 1755 is a significant win for consumers, though it may be revised in the upcoming months. For California residents, the law may bring peace of mind when making one of the largest purchases of their lives—knowing that, should a car prove defective, they have stronger protections and a clearer path to a fair resolution.

Contact a Lemon Law Attorney Today

At The Law Offices of Kevin Faulk, we serve clients throughout the state of California, including Sunnyvale, San Jose, San Francisco, Oakland, Sacramento, Bakersfield, Los Angeles, San Diego, and the surrounding areas. If the vehicle you've purchased is a lemon, be sure to contact our law offices to schedule a consultation.