2025 California’s Lemon Law Changes – Used Vehicles

As of January 1, 2025, significant changes to California’s Lemon Law — formally the Song-Beverly Consumer Warranty Act — have taken effect, reshaping consumers’ rights in two distinct ways. First, a landmark California Supreme Court decision narrowed which vehicles qualify for the law’s strongest remedies, with a heavy impact on used vehicle buyers. Second, a pair of new laws overhauled the procedures for bringing a lemon law claim. These developments have raised concerns among consumer advocates and legal professionals, including our firm, as they potentially weaken protections for car buyers.

Below, we break down what changed, why it matters, and what you can do to protect yourself.

The Supreme Court Ruling: Rodriguez v. FCA US, LLC

On October 31, 2024, the California Supreme Court issued a unanimous decision in Rodriguez v. FCA US, LLC that fundamentally changed the landscape for used-car buyers.

The case involved plaintiffs who purchased a used vehicle that still carried the balance of the manufacturer’s original powertrain warranty. When the vehicle developed persistent defects that could not be repaired, they sought the “refund-or-replace” remedy that the Lemon Law provides for defective new cars.

The Court ruled against them. It held that a used vehicle sold with some remaining balance on the manufacturer’s original warranty does not qualify as a “new motor vehicle” under the Song-Beverly Act. As a result, the refund-or-replace remedy does not extend to most used cars — even when they are still under the original factory warranty. The Court reasoned that a manufacturer’s heightened liability under the Lemon Law attaches only when it issues a warranty at the time of sale, which does not happen when a car is resold with warranty coverage simply carried over.

The practical scope of this decision is enormous. With roughly 3.5 million used cars sold in California in 2024, a large share of buyers who previously believed they had strong Lemon Law protection no longer do.

Procedural Overhaul: AB 1755 and SB 26

Separate from the Rodriguez ruling, the Legislature rewrote the procedural rules that govern how lemon law claims against manufacturers are filed and resolved.

Governor Gavin Newsom signed Assembly Bill 1755 on September 29, 2024, with most provisions taking effect January 1, 2025. The bill’s stated goal was to move cases through the system faster and reduce what the Legislature called duplicative litigation — a response to a sharp rise in filings, which the California Judges Association estimated had grown to nearly 10% of all civil filings in Los Angeles County.

Key procedural changes introduced by AB 1755 include:

• Strict timelines for a manufacturer to respond to a claim and to complete any offered restitution or replacement.
• New pre-litigation notice requirements — a consumer must now notify the manufacturer before filing suit.
• Mandatory early mediation before a case proceeds to court.
• Arbitration of pre-litigation attorney’s-fee disputes.

Because several automakers raised concerns that these procedures were unworkable, the Legislature passed a follow-up cleanup bill, Senate Bill 26, which Governor Newsom signed on April 2, 2025. SB 26 created a voluntary opt-in system: the new AB 1755 procedures apply only to manufacturers who elect into them, while automakers that do not opt in remain subject to the older rules. SB 26 also shifted the operative date of the pre-suit notice provisions to July 1, 2025.

The California Department of Consumer Affairs maintains and publishes the official list of opted-in manufacturers through its Arbitration Certification Program. Because most major manufacturers have opted in, the track your claim follows now depends heavily on who made your vehicle — which makes early legal guidance more important than it used to be.

What This Means for Consumers

Reduced protections for used-car buyers. After Rodriguez, a consumer who buys a used vehicle with a remaining manufacturer’s warranty generally cannot obtain a refund or replacement under the Lemon Law if the vehicle turns out to be defective. This can leave buyers exposed to significant repair costs without the recourse they previously had.

Your rights have not disappeared entirely. Even where the Song-Beverly refund-or-replace remedy no longer applies, other protections remain available. Used-car buyers may still be able to bring claims under the federal Magnuson-Moss Warranty Act, pursue breach-of-warranty claims, or assert fraud claims against dealers and distributors. These remedies typically result in a cash recovery based on the vehicle’s reduction in value, plus attorney’s fees, rather than an outright buyback.

More complexity in filing claims. The AB 1755 procedures add new steps — notices, deadlines, and mandatory mediation — that make the process more demanding to navigate correctly. Missing a deadline or skipping a required step can jeopardize an otherwise valid claim.

Our Perspective

We share in the frustration and concern that these legal changes bring. The narrowing of protections for used-car buyers undermines the confidence that consumers should be able to have when purchasing a vehicle. Our firm remains committed to advocating for the rights of consumers and will continue to monitor these developments closely — including any future legislative fixes, which consumer groups continue to push for.

Recommendations for Car Buyers

• Thoroughly inspect used vehicles. Given the reduced legal protections, it is more important than ever to have a used car inspected by a trusted, independent mechanic before you buy.
• Consider a Certified Pre-Owned (CPO) vehicle. CPO cars sold with a new manufacturer’s warranty may still fall within the Lemon Law’s stronger protections in a way that ordinary used cars no longer do.
• Obtain detailed written warranties. Make sure any warranty offered at the point of sale is comprehensive and clearly documented in writing.
• Keep thorough records. Save every repair order, invoice, and communication with the dealer or manufacturer. Strong documentation is often the difference-maker in a defective-vehicle claim.
• Act quickly and stay informed. The new procedural deadlines are strict. If you think you have a defective vehicle, consult an attorney promptly rather than waiting.

While these changes present new challenges, our firm is here to support and guide you through the complexities of the Lemon Law. We are dedicated to ensuring that your rights are protected, even in this evolving legal landscape.

Contact Us Today for a Free Consultation

Protect yourself when dealing with defective vehicles in California. With recent changes to the Lemon Law impacting consumers — especially those purchasing used cars — it’s more important than ever to know your rights. If you’re facing issues with a defective vehicle, reach out to the Law Offices of Alex Cha & Associates. We’ll evaluate your case, explain how these legal changes may affect you, and guide you through the process to seek the resolution you deserve.

Call us today at (213) 351-3513 or schedule your free consultation. Don’t let these new Lemon Law challenges leave you stranded — get the knowledgeable legal representation you need to move forward.