Groups » How Much is My California Lemon Car Worth to Me?

Cars are complicated; and given the high price tags of their spare parts, any kind of problem or malfunction can give the owner a nightmare. While repairs are a part of owning a car, there is certainly a limit.
 
What do you do with a car that spends more time in the repair shop than on the road?
 
If this sounds like your car, it’s probably time to explore your options a bit further, as it is probably a lemon. According to Nolo.com, 150,000 cars i.e. 1 percent of new cars produced in a year are lemons and “have repeated, unfixable problems.”
 
The good news is: Lemon car laws are here to safeguard buyers’ interest. These laws protect car owners against substantial defects that occur after purchase (within a specified period). It also mandates the manufacturers to either replace the car or repay the full purchase price, if the car is proven to be a lemon. Fortunately, ALL states have these laws. In California, for example, these laws are applicable to all cars purchased or leased in the state “that are still under a manufacturer’s new car warranty” and they are also applicable to used vehicles that are still under a manufacturer’s warranty.
 
That being sorted, the question now is how much is your California lemon car worth to you? But before getting into that, let’s take a look at what exactly makes your car a lemon in this state.
 
What Makes Your Car a Lemon in California?
 
A car is considered a lemon in California on the grounds of two basic legal elements:
 

• The car has a substantial defect(s), which impairs its use, value, or safety, and the defect(s) is covered by manufacturer’s warranty.


• A reasonable opportunity to repair was given to the manufacturer or its authorized repair facility to repair the defect(s).

 
Now, it is essential to understand two aspects of this definition i.e.
 

• Substantial defect, and


• Reasonable repair attempts to determine the worth of your lemon car.

 
Substantial defects are defined as defects that affect not only the safety of the car, but also impairs its use or value. In fact, if your car has a defect that impairs any of these three criteria, it can be considered a lemon. However, the defect or problem must first arise within the written warranty period and it must not be caused by owner’s abuse or neglect.

Reasonable repair attempts are defined as the number of attempts or the total number of days the car was in the repair shop. It is essential to give the manufacturer a reasonable time to fix the problem before you file a lemon lawsuit. In California, the reasonable number of repair attempts may be affected by the seriousness of the defect(s). In general, two or more repair attempts for serious conditions that can cause death or serious bodily injury, can qualify for California lemon law protection.
 
For other issues, the manufacturer’s authorized repair facility should be given at least two (2) opportunities to repair unless the vehicle spends 30 or more days out of service for repair, or the repair facility or manufacturer refuse a second repair attempt.
 
If your car meets these criteria, you are likely to receive either a replacement or a repurchase.
 
What The Manufacturer Should Pay?
 
If your car is proven to be a lemon, there are two ways for the manufacturer to compensate you:
 

• Offer a replacement car of similar value, or


• Repurchase the defective vehicle. Apart from that, the California lemon law also entitles the plaintiff to get compensation for collateral damages caused by the malfunctioning car.

 
Replacement: If you opt for a replacement car, the manufacturer should give you an identical or relatively equivalent car to the one it is replacing. It must be delivered to you and must come with all of the warranties like a new car. However, replacement remedy is optional and both the consumer and the manufacturer must agree on a replacement.
 
Under California lemon law, manufacturers are obligated to pay all of the collateral charges accompanied by the replacement vehicle including sales tax, registration, license fees, and other official fees.
 
Reimbursement: You can also choose repurchase or reimbursement, as your remedy and the manufacturer is obligated to refund you the purchase price along with any collateral charges like registration and title fees, sales and use taxes, insurance costs, the initial down payment of the car, monthly payments (made so far), finance fees, interest paid, penalties to terminate the finance agreement, towing fees, and so on. In short, any amount paid, or payable, must be reimbursed by the manufacturer.
 
How Much is Your California Lemon Car Worth?
 
In general, the repayment amount is determined after deducting the car’s usage fee, which is calculated by using the following formula:
 
[miles driven prior to 1st repair]/ [120,000] x cash purchase price = usage fee
 
For example, let’s consider a car that costs $50,000. If it has been driven for 5,000 miles from the moment it was purchased until it was first brought into the repair shop to resolve a lemon problem, the usage fee will be calculated as 5,000 miles divided by 120,000 miles multiplied by $50,000 (the price of the car). Therefore, the usage fee is $2,083. This amount will be deducted from your repurchase amount.
 
The odometer number plays an important role in calculating the usage fee. However, your odometer readings are taken into consideration when you first bought your car and when you bring it into the repair facility for the defect identifying it as a lemon. Besides, the final repurchase amount also includes other collateral charges and incidental expenses including repair expenses, towing charges, car rental, alternative transportation charges, attorneys’ fees, and other costs associated with the prosecution of the claim.
 
It is therefore advised to consult an experienced California lemon lawyer to help you determine the worth of your lemon car.
 
Conclusion
 
California lemon law forces the defendant (manufacturer) to pay for the consumers' attorneys' fees and other legal costs. It is therefore recommended to speak to a lemon law attorney not only to determine the real worth of your malfunctioning car but also to represent your best interests if you have a lemon.