New vs. Used vs. Leased: How California Lemon Law Treats Each Differently

Not every frustrating car issue qualifies under California’s Lemon Law, but many do, and countless drivers don’t even realize it. Whether you bought a brand-new SUV, leased a hybrid, or drove off in a used sedan, your vehicle could still be protected.

This article breaks down exactly how California Lemon Law applies to new, used, and leased cars, plus what happens when you buy from a private seller. 

We’ll also explain what qualifies a car as a lemon and what steps to take if you think you’re driving one.

How Does a Car Qualify for Lemon Law in California?

California’s Lemon Law, officially known as the Song-Beverly Consumer Warranty Act, protects drivers when their vehicle turns out to be a dud. But not every annoying rattle or glitch qualifies. To be considered a “lemon,” your car must meet three main criteria: it must have a valid warranty, a significant defect, and a history of failed repair attempts.

1. The vehicle must be under warranty

Lemon Law only applies to vehicles that were sold or leased with an active manufacturer’s warranty. If the warranty has expired or the car was sold “as-is,” these protections likely won’t apply.

2. The defect must be serious

Not all problems are created equal. For a car to qualify under the law, the defect must substantially impair the vehicle’s use, value, or safety. This goes beyond minor annoyances and includes issues like:

  • Repeated engine failures

  • Electrical system malfunctions

  • Transmission slipping or rough shifting

  • Faulty brakes or steering systems

3. There must be a reasonable number of repair attempts

The manufacturer or authorized dealer must have had a fair chance to fix the issue. This means:

  • Usually, at least two attempts are made to fix a dangerous defect that risks injury or death

  • Usually, at least four attempts are made for less serious but recurring issues

  • Or, the car has been out of service for 30 or more cumulative days for repairs

New Cars: Full Lemon Law Protection

Row of new cars parked at a dealership showroom, representing vehicles eligible for California Lemon Law coverage

When it comes to the California Lemon Law, new vehicles are the most straightforward to deal with. If your car starts acting up within the first year or so, even if it’s fresh off the lot, you may be entitled to a replacement or a full refund.

The law includes a “presumption” that a car is a lemon if certain issues occur within a specific timeframe. This makes it easier for buyers of new cars to file a claim and win.

1. Issues that appear early

Your vehicle may qualify as a lemon if the problem shows up within the first 18 months or 18,000 miles, whichever comes first. This is often referred to as California’s lemon law presumption period, and it provides extra leverage in your claim.

2. Buyback or replacement is your right

If the dealer or manufacturer can’t fix the defect after reasonable repair attempts, they are legally required to make it right. That means you can request:

  • A vehicle replacement of a similar make and model

  • Or a full buyback, which includes:
    • Your down payment
    • All monthly payments made
    • Sales tax and  licensing fees
    • Reasonable towing and rental car expenses you’ve incurred

Good to know: The refund or replacement must also cover your incidental costs related to the defect.

Does Lemon Law Apply to Used Cars in California?

There’s a common misconception that the California Lemon Law doesn’t apply to used cars. While it’s true that protections are more limited, used vehicles can still qualify, but only under the right conditions.

1. It all depends on the warranty

A used vehicle is only eligible if one of the following is true:

  • There’s remaining coverage under the original manufacturer’s warranty

  • The dealer provided a written warranty, often included with Certified Pre-Owned (CPO) vehicles

Without a warranty, lemon law coverage simply doesn’t apply.

2. “As-Is” Means No Legal Protection

When a vehicle is sold “as-is,” it means the buyer accepts the car in its current condition, with no promises or guarantees from the seller about its quality or performance. In other words, there’s no warranty, not even an implied one.

If you buy a car “as-is” and it breaks down the next day, you’re responsible for the repairs, even if the issue was serious or hidden. That’s why:

  • California Lemon Law doesn’t apply to “as-is” sales

  • You can’t demand a refund or replacement based on the vehicle’s defects
  • The seller has no obligation to fix anything once the sale is final

 Pro Tip: Always read the purchase agreement carefully. If it says “as-is” or excludes all warranties, you likely have no legal recourse under the Lemon Law.

3. CPO Cars Are Your Safest Bet

CPO stands for Certified Pre-Owned. These are used vehicles that have been inspected, refurbished, and certified by the manufacturer or dealership to meet specific quality standards. 

Unlike regular used cars, CPO vehicles usually come with a limited warranty, which is why they’re far more likely to qualify for protection under California’s Lemon Law.

Here’s what makes a CPO car different:

  • It must pass a multi-point inspection (often 100+ items)

  • Any worn or faulty parts are repaired or replaced

  • It’s sold with a manufacturer-backed warranty (or sometimes a dealer-backed one)

If a major defect shows up during the coverage period, and repeated repair attempts don’t resolve it, you may be eligible for a lemon law claim, just like with a new car.

Tip: Always confirm whether the warranty is a Powertrain, Bumper-to-Bumper, or both, and get it in writing before purchase.

Read more about the types of warranty: Lemon Law vs Warranty: What’s the Real Difference?

Does the Lemon Law Apply to Leased Cars?

Leasing a vehicle doesn’t mean forfeiting your legal rights. In fact, California Lemon Law treats leased cars almost exactly the same as purchased ones, as long as the lease includes a valid manufacturer’s warranty.

1. Leased vehicles are eligible

If your lease includes a manufacturer’s new vehicle warranty, and the car develops a qualifying defect, then you’re protected under lemon law.

2. Time and mileage limits still apply

Leased vehicles must still meet the same 18-month or 18,000-mile presumption period. Any serious issue that appears within that timeframe could make your car a legal lemon.

3. You may be entitled to walk away

If the car qualifies and can’t be repaired, you may be eligible for:

  • Full refund of lease payments made to date

  • Reimbursement for registration fees, repair costs, and towing or rental expenses

  • Early lease termination without penalties

Keep all lease agreements and repair documentation organized. It strengthens your case if you need to file a claim.

Does California Lemon Law Apply to Private Sales?

 Frustrated driver dealing with a defective vehicle purchased and wondering how does a car qualify for lemon law  in California

Thinking about buying a used car from Craigslist or a neighbor? Be careful, the California Lemon Law rarely applies to private party sales.

Unlike dealerships, private sellers aren’t required to provide warranties or disclosures unless they’re knowingly hiding a defect. That means your legal protections are far more limited.

1. Private party sales are generally excluded from Lemon Law

The core requirement for Lemon Law protection is a manufacturer-backed warranty. Most private sales involve vehicles that are:

  • Out of warranty, or

  • Sold explicitly “as-is”, with no coverage or guarantees

Without an active warranty, the law assumes the buyer is accepting the car in its current condition, problems and all. Once the paperwork is signed and the keys are handed over, it’s usually a done deal.

Fun fact: Lemon Law protections primarily exist to regulate commercial transactions between consumers and businesses, not between two private individuals.

2. There are very rare exceptions

A private sale might still qualify under California Lemon Law if both of these are true:

  • The original manufacturer’s warranty is still active and transferable at the time of sale

  • The vehicle meets all the other lemon law conditions (serious defect, reasonable repair attempts, etc.)

However, these cases are difficult to pursue without strong documentation. Most manufacturers require proof of regular service and warranty transfer paperwork, which private sellers often don’t provide.

3. Other legal remedies may still apply

If you discover that the seller intentionally concealed a serious defect, you may have legal options outside of lemon law. These include:

  • Small claims court – For damages typically under $12,500, if the defect was not disclosed and should have been

  • Fraud or misrepresentation claims – If the seller lied about the condition of the car or tampered with records (like rolling back the odometer)

  • Breach of implied contract – In rare cases where the buyer can prove the seller made promises not honored in writing or behavior

What to Do If You Think Your Vehicle Is a Lemon

Woman reviewing vehicle documents and repair history for a potential lemon law claim in California

If your car is showing serious mechanical problems and repair attempts have failed, it’s critical to act quickly. Whether your vehicle is new, used, or leased, you may still be covered under California’s Lemon Law if you take the proper steps.

Step-by-Step Guide

1. Keep Detailed Repair Records
Maintain thorough documentation to demonstrate that the dealership had a fair chance to fix the issue. Save:

  • Repair orders and service invoices
  • The dates the vehicle was in the shop
  • All communications with the dealer or manufacturer

2. Check Your Warranty
Verify whether your vehicle is still covered under a manufacturer’s or dealer-provided warranty. This information is key to determining if your claim is eligible under Lemon Law.

3. Consult a Lemon Law Attorney
Navigating a claim on your own can be challenging. A qualified attorney will help you:

  • Interpret your warranty and rights under the Lemon Law
  • Communicate effectively with manufacturers
  • File your claim within the required deadlines
  • Maximize your compensation

If you need guidance, consider booking a free consultation with our team at Court House Lawyers. We can review your situation and help determine if you have a valid claim.

Conclusion: Know Your Rights Before It’s Too Late

California’s Lemon Law was designed to protect consumers, but it won’t help if you don’t use it. If your vehicle is still under warranty and plagued by serious defects, you may be entitled to a full refund, a replacement vehicle, or compensation for your losses. But the clock is ticking.

Don’t let missed deadlines, poor documentation, or uncertainty about the law cost you thousands in repairs or worse, put your safety at risk.

Whether your car is new, used, or leased, or even bought privately with an active warranty, you deserve peace of mind and a vehicle that works as promised.

Think your car might be a lemon? Book a free legal consultation with Court House Lawyers today. Let our attorneys review your case, explain your options, and fight for the outcome you deserve before it’s too late.