Purchase or Replace a Lemon Car? Californian Lemon laws Relating to the Decisions

If your vehicle meets the Californian lemon law requirements, you have the right to ask for a car replacement or monetary compensation from the manufacturer. For financial compensation, the manufacturer is required to restore the buyer to their original position. However, if you prefer a car replacement, the manufacturer compensates you with a similar vehicle. The Californian Lemon Law has outlined specific guidelines for each alternative to ensure the buyers’ interests are protected.

Car Replacement

Many buyers are hesitant about buying or dealing with the same manufacturer after buying a materially defective vehicle. Most of them question the selection process of the replacement car. Luckily, the Californian law compels manufacturers to:

Replace the Defective Vehicle with a New One

The Californian Lemon Law requires the manufacturer to replace the defective car with the original one. This law was drafted to protect buyers from manufacturers who produce faulty cars should the lemon law litigation be successful. It also ensures the manufacturer restores the consumer into their original position before buying or leasing the lemon car.

Compensate for Incidental and Collateral Charges

The manufacturer is liable for collateral and incidental costs related to replacing the car. This means the consumer should be reimbursed for incidental damages, including repair and towing charges. Also, the manufacturer is liable for registration, sales, and license fees, as well as attorney fees. 

Include Express and Implied Warranties

The Lemon law requires the manufacturer to provide express and implied warranties for a replacement vehicle just as a new car. This caveat was included to ensure the consumer won’t be filing another claim after the car replacement. 

Monetary Reimbursement

If the reimbursement is in the form of a cash refund, the arbitrator determines the cash refund based on:

  • Whether it is a car purchase: If so, the refund consists of the cash price of the car during the sales agreement, the incidental costs and collateral charges. Also, if you have a loan due, the lender is paid from the refund
  • Whether it is a car lease: The cash reimbursement is the sum of all lease payments made, including the security deposit, incidental costs, and collateral charges. The manufacturer is also required to pay for the remaining lease obligations apart from penalties accrued due to late payment

The Caveat?

If you are a second or third buyer, the repurchase award is based on your purchase price; not the owner’s buying price. Also, the manufacturer does not reimburse for costs associated with ‘offset of use.’ The cost is calculated based on vehicle usage before a significant defect. The manufacturer multiples the number of miles traveled by the consumer by the purchase price and divided by 120,000. 

Pursuing Monetary Compensation or Car Replacement for a Lemon Car? Ask a Lemon Lawyer Attorney to Help You

Should you file a litigation case successfully and would like to know more about your legal rights, contact one of our experienced lawyers. They will advise you on the best course of action and help you get a satisfactory recourse for the defective vehicle. 

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