Leasing a vehicle does not mean giving up your Lemon Law rights.
In California, the Lemon Law generally applies to qualifying new vehicles that are purchased or leased in the state and are covered by the manufacturer’s new-vehicle warranty. If a leased car has a serious defect that the manufacturer cannot repair after a reasonable number of attempts, the lessee may be entitled to a buyback or replacement.
For drivers dealing with repeated repairs, that can be an important distinction. You do not have to own the vehicle outright to have a potential Lemon Law claim.
Does Lemon Law Apply to Leased Vehicles?
Yes. California Lemon Law protections generally cover qualifying leased vehicles in much the same way they cover purchased vehicles.
The key questions are usually whether:
- The vehicle is covered by the manufacturer’s warranty
- The defect affects the vehicle’s use, value, or safety
- The manufacturer or its authorized dealer had a reasonable opportunity to repair the problem
- The problem continues despite those repair attempts
The California Attorney General specifically states that the Lemon Law applies to most new vehicles purchased or leased in California that are still covered by the manufacturer’s new-vehicle warranty.
When Does a Leased Car Qualify as a Lemon?
There is no single repair count that automatically makes every leased vehicle a lemon.
A leased vehicle may qualify when a warranty-covered defect substantially affects its use, value, or safety and the manufacturer cannot repair it after a reasonable number of attempts. The problem also cannot be the result of unreasonable or unauthorized use.
California also has a Lemon Law presumption that may apply in certain situations. For example, it may become easier to establish a claim when the vehicle has undergone repeated repair attempts for the same problem or has spent an extended amount of time out of service.
What Happens If Your Leased Vehicle Is a Lemon?
If a leased vehicle qualifies under California Lemon Law, the manufacturer may be required to repurchase or replace it.
Lemon Law Buyback
A buyback is designed to unwind the defective vehicle transaction and compensate the consumer for qualifying amounts associated with the lease.
Buyback amounts can vary based on the lease terms, repair history, and when the defect first appeared. The California Lemon Law buyback process explains how those calculations are generally handled.
Vehicle Replacement
A replacement vehicle may also be available in some cases.
California law gives qualifying consumers the right to choose a refund rather than being forced to accept a replacement.
Should You Keep Making Lease Payments During a Lemon Law Claim?
In most situations, you should not simply stop making your lease payments because the vehicle may qualify as a lemon.
Your lease agreement is still in effect while the claim is being handled. Missing payments could create separate problems with the leasing company or your credit.
If you are considering stopping payments, returning the vehicle early, or making another major change to the lease, speak with a California Lemon Law attorney first.
What Records Should You Keep?
Documentation can make a major difference in a leased vehicle Lemon Law claim.
Keep copies of:
- Your lease agreement
- Repair orders
- Service invoices
- Warranty documents
- Emails or messages with the dealership or manufacturer
- Records showing how long the vehicle was out of service
Always review repair orders before leaving the dealership. Make sure they accurately describe the problem you reported.
What If Your Lease Is Almost Over?
A lease that is close to ending does not necessarily mean you should ignore repeated warranty problems.
What matters is when the problems occurred, whether the manufacturer had opportunities to repair them, and the overall repair history.
If your lease is ending soon and the vehicle has spent months going back and forth to the dealership, it may be worth reviewing your Lemon Law rights before simply turning the vehicle in.
What Should You Do If Your Leased Car Keeps Having Problems?
If the same issue keeps returning, a few simple steps can help protect your claim:
- Continue reporting the problem. Take the vehicle to an authorized repair facility when appropriate.
- Keep every repair order. Even short dealership visits can become important later.
- Document time out of service. Keep track of how long you are without the vehicle.
- Have the repair history reviewed. A California Lemon Law attorney can help determine whether the vehicle may qualify.
Can a Used Leased Vehicle Qualify?
Sometimes. California Lemon Law can apply to certain used vehicles when they are still covered by the manufacturer’s new-vehicle warranty.
Used and previously leased vehicles can be more fact-specific, so warranty coverage and repair history become especially important.
Speak With a California Lemon Law Attorney About Your Leased Vehicle
If your leased car, truck, SUV, or other qualifying vehicle keeps returning to the dealership for the same problem, you may have rights under California Lemon Law.
Jacob Kashani, California Lemon Law Attorney, represents consumers in Los Angeles, Van Nuys, and throughout California in claims involving defective leased and purchased vehicles.
Find out if your leased vehicle may qualify. Contact Jacob Kashani for a free case evaluation.
Frequently Asked Questions
Can a leased car be a lemon in California?
Yes. California Lemon Law generally applies to qualifying new vehicles that are purchased or leased in California and covered by the manufacturer’s new-vehicle warranty.
How many repair attempts does a leased vehicle need?
There is no single number that applies to every case. A reasonable number of repair attempts depends on the defect, its seriousness, and the vehicle’s repair history.
Can I just return a leased lemon to the dealership?
Returning a leased vehicle on your own is not the same as completing a Lemon Law buyback. Before ending the lease or surrendering the vehicle early, it is wise to understand how doing so could affect your claim.
What happens to my lease if the manufacturer buys back the vehicle?
A successful buyback generally involves resolving the qualifying lease obligations and amounts connected with the defective vehicle. The exact outcome depends on the lease and the circumstances of the claim.