Lemon Law for California

Sales of luxury vehicles in the United States have increased substantially over the past five years or so. There are many reasons why people buy expensive cars and trucks; some just like the added comfort. Others like to brag about having an expensive make. Still others like to drive an attention grabbing vehicle. What other reason could there be for driving a Hummer in downtown Chicago?

Consumers need to realize a several things about expensive cars. The luxury features are nice, but studies show that nearly all cars are about equally reliable these days. Furthermore, most cars are about equally likely to be defective. That means that while it may be nice to drive a Ferrari, you will pay a lot for the privilege, and you still run the risk of buying a lemon. In addition, the insurance and repair costs of a more expensive car could be far more than you might expect.

Car reliability is currently the best it has ever been. Such cars, as the Honda Civic are reliable and can reasonably be expected to run well for years. The old days when a car with 100,000 miles on it was considered over the hill are gone; many cars routinely reach 200,000 miles and beyond today.

Driving Jaguar or a Porsche does not make you exempt from factory defects it is just more expensive just creates a more expensive headache should a lemon problem occur. All cars will have occasional problems, including warranty issues. The defects of expensive or exotic cars can be even more serious.  They might need to be ordered from a remote location.

Warranty problems with luxury cars are often associated with nonessential equipment, such as adaptive cruise control or other sophisticated electronic gadgetry. The one advantage of having problems with expensive cars is that dealers of such vehicles tend to be a bit more service-oriented than dealers of more common or less expensive vehicles. That may at least save you a bit of discomfort, particularly if your dealer is willing to lend you a car while your expensive machine is out for repairs.

All cars, no matter what make or model or price range, are going to have occasional problems, and some are going to be out and out defective. Don’t lie to yourself by thinking that buying an expensive car will somehow insure that you don’t get stuck with one that’s defective. The risk is still there.

Long ago consumers with defective vehicles had to beg manufacturers or dealers to help them with their problems. Those days are gone, as every state now has a lemon law on the books that protects consumers from the hassles of defective new vehicles. Consumers with problem cars or trucks can receive either a replacement vehicle or a refund of the purchase price.

When the first lemon laws were passed, virtually all new vehicles were sold to the end consumer. That is not necessarily the case any more.

There are many reasons to lease a vehicle instead of buying one: low down payments and low monthly payments, as well as knowing that you can simply be rid of the vehicle once it reaches a point where it might need regular maintenance. People want to drive a new vehicle all the time, and leasing allows that with a minimum of hassle. When the lease is up, you can just drive back to the dealership and give them the keys. That’s an oversimplification, of course, but that is pretty much how it works. When consumers realize that they cannot buy the vehicle for the low price advertised, they often decide to lease, as auto manufacturers often advertise low prices on television for leases.

Not all states cover leased vehicles under their lemon laws. One state that does not, as of this writing, is Arizona. Those who lease vehicles are also not covered under the Magnuson-Moss Warranty Act, a Federal law that offers consumer protection. Again, the court ruled that those who lease are not “owners”, and both the state law and the Federal law explicitly refer to owners.

Most states’ lemon laws do cover leased vehicles. If a person wants to lease a car, truck, or minivan would be wise to first check with their state’s Attorney General’s office to see if the vehicle they plan to lease is covered under that state’s defective vehicle statute. If not, you may be taking a significant risk when you sign a lease.