Leased Vehicle Lemon Law in California

California Lemon Law covers new leased vehicles with a gross vehicle weight (GVW) under 10,000 pounds.

California's Lemon Law presumes that a leased vehicle is a lemon if the vehicle:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer's defects that occurred during the first 18 months from the original owner's delivery date or the first 18,000 miles on the odometer (whichever period ends first) unless your vehicle is covered by a longer warranty; if you have a longer warranty, Lemon Law protects you for the entire warranty period
• Has been taken in four times for the same problem or if it has been out of service for 30 days due to a series of unrelated problems; or if the problem is likely to cause death or serious bodily injury, the vehicle has been taken in two times for repair
• The manufacturer has been notified of the need for repair, if your owner's manual states that notification is required

Under California Lemon Law, if the manufacturer of your vehicle participates in a state-certified arbitration program, you must request arbitration in order to seek relief (although you can accept or reject the arbitrator's decision). If the manufacturer doesn't participate in a state-certified arbitration program, you must still notify the manufacturer of the problem if your owner's manual states that notification is required. Although it's not required by law, the demand letter should be sent by certified mail, with a return receipt requested. Sample demand letter.

California Lemon Law provides several options for a successful Lemon Law claimant. First, you may be awarded a replacement vehicle of the same year, make, and model. You may also qualify for a monetary award, which can include:

• Down payment and lease payments
• Sales tax
• Registration fees
• Finance charges paid on your lease
• Towing and vehicle rental costs
• Incidental costs
• Attorney's fees

The amount of the monetary reward may be reduced by a deduction for the total mileage on the vehicle. This amount is calculated by dividing the miles drive at the time of the first repair attempt by 120,000, and multiplying by the purchase price.

As with other types of Lemon Law claims, organization is key to presenting a convincing case. Keep spotless records of every malfunction and problem you have had with your business vehicle since you bought it. Save all of the paperwork that you received every time you brought your vehicle to be serviced. Catalog the days the vehicle spent in the shop and out of your possession. Remember, the more organized your evidence is, the more likely it is that your attorney can win your case.