In 2025, Californians face a perplexing situation when it comes to purchasing clunker cars. New lemon law rules come into effect, and the state Supreme Court has limited warranty protections for used vehicles. This has left consumers in a state of confusion as lawmakers revisit the rules and consumers await new laws.

Navigating the 2025 California Car Market

New Lemon Law and Its Impact

Californians who purchase a clunker car in 2025 will have to deal with a new version of the state's "lemon law." This law has given consumers the right to demand car companies fix or replace defective vehicles for five decades. However, unless lawmakers pass a law allowing some car companies to opt out of the new requirements, buyers will have to navigate these changes.The confusion began when Governor Gavin Newsom signed a law in late September after secret negotiations between lobbyists. While this was done to address the clogging of California courts with lemon law cases, critics argue that it significantly weakened consumer protections.Newsom said he signed the law only after lawmakers promised to introduce voluntary reforms for automakers next year. Lawmakers have already introduced legislation that meets Newsom's demands, but it remains to be seen how long it will take for the bill to pass through the Senate and Assembly and receive Newsom's signature. Meanwhile, parts of the new lemon law take effect on January 1, while others take effect in April.

Lemon Law Cases and Their Impact on Courts

California's lemon law defines a "lemon" vehicle as one with serious warranty defects that the manufacturer cannot fix even after multiple attempts. The law only applies to disputes involving the manufacturer's new vehicle warranty.If the manufacturer or dealer cannot repair a serious warranty defect after a "reasonable" number of attempts, the manufacturer must either replace the vehicle or refund its purchase price, whichever the customer prefers. Disputes can be resolved through arbitration or in court if a consumer sues.The number of lemon law cases in California courts has been increasing, climbing from nearly 15,000 in 2022 to more than 22,000 last year. In Los Angeles County, nearly 10% of all civil filings are now lemon law cases.Proponents argue that the bill Newsom signed will speed up the process of getting consumers a working vehicle and set new procedural rules for the litigation process to ease the burden on courts. However, critics argue that the changes will primarily benefit US car companies at the expense of consumers, as foreign car companies largely opposed the measure.Shahan, who represents Consumers for Auto Reliability and Safety, points out that US car companies have a significantly higher number of lemon law cases in California than foreign counterparts. This is why, if lawmakers pass the bill Newsom wants, foreign companies are likely to abide by the original version of the lemon law.In the meantime, until lawmakers pass the pending legislation, buyers who purchase any defective new vehicle will have less time to sue and will receive less money from rebates. The new rules also shorten the period they can use the lemon law from the entire life of the vehicle's warranty to just six years.

Court Ruling and Its Impact on Used Lemon Vehicle Disputes

In 2021, Mariana Alvarado Rodriguez, a seasonal farmworker from Tulare County, purchased a 2018 GMC Sierra 1500 with 40,002 miles from a Fresno County car dealer for $25,000. Soon after driving it off the lot, she experienced mechanical problems that she believed should have been covered under the vehicle's warranties. However, General Motors refused to honor them.A Fresno County judge tossed her lawsuit a year later after the Fourth District Court of Appeal ruled that warranties that apply to new cars do not carry over if the vehicle is sold again. The Supreme Court affirmed this judgment.Alvarado Rodriguez still does not have reliable transportation for when she returns to work in the fruit-packing sheds this spring. The process has been long and has had a significant impact on her.Democratic Senator Tom Umberg of Santa Ana is one of the authors of the new lemon law reforms set to take effect next year. He also co-wrote new legislation in December to address Newsom's concerns. However, this legislation does not address the Supreme Court's ruling that impacted used vehicle warranty claims like Alvarado Rodriguez's. He said lawmakers will likely take up this issue when they reconvene after the holidays.We are CalMatters, your nonprofit and nonpartisan news guide. Our journalists are here to empower you and our mission continues to be essential. We are independent and nonpartisan, providing trustworthy journalism free from partisan politics and corporate influence. We focus on California issues and hold people in power accountable. But we need your support to keep doing this. Please give what you can today. Every gift helps.