Buying a car is an exciting milestone, but that excitement can disappear fast if you realize your new ride is a lemon. A “lemon” is a car with persistent defects that impact its use, value, or safety. 

The big question is: Do dealerships have to tell you if a car was a lemon before reselling it? In California, the law has clear rules for dealers when it comes to lemon vehicles. Learn more about them below!

 

Can a Dealership Sell You a Former Lemon?

The short answer is yes. Under California law, vehicles repurchased by dealers as lemons — known as Lemon Law buybacks or warranty returns — can legally be resold to consumers, but strict rules apply.

Before a Lemon Law buyback can be resold, the title must be transferred to the manufacturer and marked as a Lemon Law Buyback. Dealers are also required to disclose the vehicle’s lemon status to buyers; this includes: 

• Placing a decal on the vehicle identifying it as a Lemon Law Buyback.
• Provide a written disclaimer that the buyer must sign, acknowledging the car’s lemon status, defect details, and repair history.

While dealers aren’t obligated to fix these vehicles and can sell them “as is,” they must follow these disclosure rules. If you suspect a dealer failed to meet these requirements, review your options or learn more about lemon law buybacks in our blog post.

 

What Is a Buyback Lemon Title?

A buyback lemon title is a label on a car’s title that shows the manufacturer repurchased it because of major defects. In California, the law requires this designation to be clearly marked so buyers are aware of the car’s history.

When you see a buyback lemon title, it typically means the vehicle had multiple repair attempts, but the issues weren’t fully fixed. In short, these cars may have latent defects that could lead to problems down the line. 

 

Do Dealerships Have to Fix Recalls Before Selling?

Yes, dealerships must fix any open recalls on a vehicle before selling it to a new buyer. If a dealer sells a car with an unresolved issue, they could be violating both consumer protection laws and safety regulations. That’s why it’s important for buyers to ask about the car’s recall history and confirm all necessary repairs have been done before making a purchase.

 

What to Do If a Dealership Sells You a Lemon

If you find yourself in the unfortunate situation of having purchased a lemon, there are several steps you can take to address the issue. First and foremost, start by gathering all documents related to the purchase, including contracts, repair records, and any communication with the dealership. These will be important if legal action becomes necessary.

 

Steps to Take

• Document Everything: Keep detailed records of all interactions with the dealership, including dates, times, and conversations. 
• Contact the Dealer: Reach out to the dealership to explain the issues and see if they can resolve them. 
• File a Complaint: If necessary, you can report the issue to the California Department of Consumer Affairs or the Better Business Bureau. 

It’s important to note that as of late October 2024, the California Supreme Court ruled that Lemon Law remedies no longer apply to used vehicles when pursuing claims against auto manufacturers; this means that even if your used car is still covered under the manufacturer’s warranty and you’ve had repeated repairs for the same issue, you’re, unfortunately, not eligible for a refund or replacement under California’s Lemon Law. 

 

How to Avoid Buying a Lemon Car

While lemon law buyback vehicles tend to be heavily discounted, not all consumers are willing to risk it, even if the manufacturer repairs the problem. 

So, how do you avoid buying a lemon? First, confirm that the vehicle you’re looking at isn’t a lemon law buyback. You should also steer clear of cars being sold in “as is” condition because they can limit your legal options if problems come up later.

Other ways to avoid buying a lemon include:

• Look up the make and model for any common issues or recalls. 
• Use the vehicle identification number (VIN) to check its history for accidents, repairs, or title issues. 
• Have a trusted mechanic inspect the car before you buy to catch any hidden problems. 
• Ask for the car’s service history and repair records. 

 

Were You Sold a Faulty Vehicle? Contact Our California Firm Today!

While used cars no longer apply, if you think your 2020 or newer vehicle might be a lemon, call 818-244-3905 or contact Norman Taylor & Associates to schedule a consultation! Our California lemon law firm can help you understand your options and take the next steps to resolve your situation.

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