Starting January 1, 2025, California's "lemon law," which protects buyers of defective vehicles, will undergo changes that could confuse car buyers, especially those with faulty new or used cars.
The law has long allowed consumers to get a replacement or refund for a defective car. However, a new law signed by Governor Gavin Newsom this year will make it harder for consumers to take legal action, with shorter time frames and fewer rebates for defective cars.
Newsom signed the new law but said he expected the legislature to pass a new version quickly.
The confusion stems from a law that could allow car companies to opt out of these changes, depending on further legislation. The law was passed to address a backlog of lemon law cases in California courts, but critics argue it weakens protections for consumers and mainly benefits U.S. automakers, who face more lawsuits than foreign car companies.
A recent California Supreme Court ruling also complicated the situation by stating that warranties on new cars do not apply once the car is resold as used. This leaves consumers who bought a used car with ongoing problems, without the same legal protections.
Lawmakers are working on new legislation to address these issues, but for now, car buyers will have fewer rights and protections regarding defective cars.
Many lawmakers say they were blindsided by the measure.
“There wasn’t a single person who represents the people of California who knew about this and was a part of those conversations – for months,” Democratic San Ramon Assemblymember Rebecca Bauer-Kahan told her colleagues on the Assembly Judiciary Committee on Aug. 30. “They dropped this in our lap, and they expect us to buy an argument related to the urgency that feels, to be honest, not real. And we’re supposed to move this in a week’s time.”