The California Supreme Court has overturned nearly 30 years of precedent and held that the state's Lemon Law does not cover used cars when the vehicle has an unexpired manufacturer's warranty.
An attorney for automaker FCA (formerly Chrysler) said that ruling would block thousands of potential lawsuits. , delivering a victory to automaker FCA that its attorney said would end thousands of potential lawsuits.
The surprise decision grew out of a case filed by a consumer who bought a two-year-old vehicle with over 55,000 miles and an active powertrain warranty.
After experiencing persistent defects, they sought relief under the Lemon Law. However, the court determined that such used vehicles do not qualify as "new motor vehicles" under the Act, thereby excluding them from certain protections.
The ruling means that the enhanced remedies of the Lemon Law are reserved for vehicles sold with a new car warranty issued at the point of sale, such as Certified Pre-Owned (CPO) vehicles.
As a result, consumers buying used cars with existing manufacturer warranties should be careful. While the warranty may still cover repairs, the Lemon Law's refund-or-replace provisions no longer apply to most used cars.
It's possible that other consumer protection laws, like the federal Magnuson-Moss Warranty Act, may apply in some cases but consumers would need to consult an attorney to pursue those remedies.
Note that the ruling applies only to California and has no effect on Lemon Law statutes, if any, in other states.