California consumers who purchase a new car within the state may seek protection for defective purchases through the state's lemon law or the Song-Beverly Consumer Warranty Act. First passed on July 1, 2006, this consumer protection law provides car buyers with a limited time period to return defective vehicles to dealers for a return of their money or replacement car.
Coverage
The consumer protection law covers vehicles used for personal purposes. The law also covers commercial consumers if their purchases do not exceed 10,000 lbs., and the purchaser's business owns less than five vehicles. The law typically does not cover motorcycles, mobile homes and off-road vehicles. However, parts of the act may cover buyers purchasing motorcycles or mobile homes. In certain cases, the law also extends to buyers who purchase used cars covered by original warranties.
Itemizations
Dealers must give each buyer an itemization of charges if the buyer obtains financing to purchase their vehicles. Dealers do not have to provide this itemization to buyers who do not obtain car loans to pay for their purchases. Dealers are limited to how much they can charge for extending loans on a bank's behalf. Banks and dealers must provide notice of how their credit applications are used and provide them with their credit scores. Dealers must provide new car buyers with a "Notice to Vehicle Credit Applicant" disclosure providing the name of reporting agencies verifying credit scores, the credit agencies' determination criterion and phone numbers to contact them.
Warranty
The Song-Beverly Consumer Warranty Act requires dealers to provide replacement vehicles or refund a buyer's money when buyers request repairs under their written warranties. The buyer, and not the dealer, has the option of selecting her remedy and may choose either a replacement vehicle or full refund minus some incidental fees. Buyers must provide dealers with a reasonable number of attempts to repair the defective vehicle. If buyers request a refund, manufacturers or dealers must pay the use taxes, license and registration fees, towing fees and any other incidental charges paid by the buyer.
Reasonable Number of Attempts
Under California law, "reasonable" depends upon the facts and circumstances. Generally, for serious issues, consumers can provide a fewer number of repair opportunities than a less serious defect. A provision in the act provides consumers with a bright-line determination of reasonable when they experience car problems within the first 18 months of delivery or within the first 18,000 miles, whichever happens first. Within the first 18 months or 18,000 miles, California law presumes the buyer provided the dealer with a reasonable opportunity and reasonable number of attempts to fix the car in certain circumstances. When the problem could lead to serious injury or death, and the buyer provides the dealer with written notice of the defect and provides the dealer with at least two repair attempts without success, then the buyer may use the presumptive rule. Additionally, buyers who provide dealers with at least four attempts to repair their cars within this timeframe and provide written notice may take advantage of this rule. The rule also applies to buyers who have had their cars in repair shops for at least 30 days, total, after purchase.
Considerations
Since consumer protection laws can frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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