If you bought or leased a defective vehicle in California, you may be entitled to recover losses from the situation. You don’t have to keep dealing with repeated repair attempts. There are financial protections for consumers.

So, how much compensation can you get under California’s Lemon Law? In some cases, you may be able to recover a refund or get a replacement vehicle, along with additional costs and attorney’s fees. Here is what you want to know. 

Do You Get a Refund or Replacement?

Under California Lemon Law, if a manufacturer cannot repair a vehicle after a reasonable number of attempts, it must either:

• Buy the vehicle back and issue a refund, or
• Provide you with a comparable replacement vehicle

Most drivers opt for a refund, but it is more than the purchase price. A Lemon Law refund may include:

• The purchase price or lease payments already made
• Sales tax
• Registration and title fees
• Dealer-installed options
• Incidental expenses, such as towing or rental car costs related to the defect

In the end, you have the right to be put back in the financial position as if you had never purchased the defective vehicle.

What About a Mileage Offset?

Manufacturers are allowed to deduct a mileage offset for the time you were able to use the vehicle before the defect first appeared. This is called the usage fee.

The offset is calculated using a formula based on:

• The vehicle’s mileage at the first repair attempt for the defect
• A fixed divisor, which is 120,000 miles under California law

The good news is that this is smaller than consumers expect, especially when the defect shows up early.

What Those Who Are Leasing the Vehicle?

Yes, even leased vehicles are protected under California Lemon Law. If your leased vehicle qualifies as a lemon, compensation may include:

• Reimbursement of all lease payments made
• Refund of the down payment and fees
• Payment of remaining lease obligations
• Return of your security deposit

In many cases, the manufacturer must also handle lease termination. That means you will not be left making future payments on a defective vehicle.

Can You Get Additional Compensation?

The answer will depend on your situation. If a manufacturer willfully violates the California Lemon Law, such as by refusing to repurchase a vehicle it knows qualifies as a lemon, the court may award a civil penalty of up to two times the consumer’s actual damages.

Additionally, the manufacturer must pay the driver’s attorney’s fees and costs if the consumer wins. This means:

• You do not pay out of pocket for legal representation
• Hiring a lawyer does not reduce your refund
• Manufacturers are incentivized to resolve valid claims instead of dragging them out

This fee-shifting provision is a major reason California’s Lemon Law is considered one of the most consumer-friendly in the country. If you believe you have a defective vehicle, a California lemon law lawyer can assess your situation.

What About Used Vehicles?

Used vehicles may still qualify under the California Lemon Law. However, they must have been sold with a manufacturer’s warranty. 

The compensation structure is similar, but the specific numbers may vary depending on the purchase price, mileage, and warranty coverage.

You Are Not Stuck with a Lemon

How much compensation can you get under California’s Lemon Law? Many times, this includes a full refund or replacement, reimbursement of expenses, civil penalties, and attorney’s fees.

If your vehicle keeps returning to the shop for the same problem, you do not have to keep hoping the next repair will finally fix it. It is time to take action and get out from under a vehicle that never should have been sold in the first place. 

At BLVD Law, we can help you take those next steps. Schedule a consultation to learn more about your potential compensation under the law.