California Supreme Court Ruling on Still-Active Warranties on Used Cars
- California Lemon Law protections do not apply to used vehicles.
- However, certified pre-owned vehicles are still protected.
In Gov. Gavin Newsom’s attempt to address the problem of California’s courts getting backlogged with lemon law cases, he reluctantly signed AB 1755 into law on September 29, 2024. In a signing message Gov. Newsom admitted that he had reservations about this bill, and that it has problems that lawmakers agreed to fix in the upcoming Legislative Session (2025-2026). It could take several months before lawmakers pass any changes. Various sections of this legislation will come into effect at different times: some will be enforced starting January 1, 2025 while others in April.
Since the Song-Beverly Consumer Warranty Act (also known as the California Lemon Law) took effect in 1970, California had the strongest lemon laws in the country. Critics claim this new bill waters down consumer protections for used car buyers and primarily benefits US auto manufacturers. As you may have guessed, Ford, GM, and Stellantis (formerly Chrysler) are among the bill’s strongest supporters.
A month after Newsom signed the bill, the California Supreme Court ruled that the state’s lemon law does not require manufacturers to honor new vehicle warranties when it’s re-sold as a used vehicle.
David Houston, Editor-in-Chief at Daily Journal writes:
Assembly Bill 1755 requires that consumers attempt to resolve their complaint with the manufacturer through mediation. The law also made several changes to speed up the litigation process after a lawsuit is filed, including expedited discovery. [Read full article posted on Daily Journal]
California Supreme Court Ruling on Lemon Law