Can You Sue a Car Dealership Under Lemon Law?
The Short Answer: Lemon Law Targets the Manufacturer, Not the Dealer
One of the most common misconceptions about California’s Lemon Law is that you sue the dealership. In reality, the Song-Beverly Consumer Warranty Act holds the manufacturer responsible for defective vehicles — not the dealer who sold it to you.
This makes sense when you think about it: the dealer didn’t design or build the vehicle. The manufacturer did. When a vehicle has a manufacturing or design defect, it’s the manufacturer’s warranty that covers the repair, and it’s the manufacturer’s obligation to repurchase or replace the vehicle if it can’t be fixed.
What Is the Dealer’s Role in a Lemon Law Case?
While you can’t typically sue a dealer under the Lemon Law, dealers play an important role:
Dealers Are the Repair Facility
Under the warranty system, authorized dealers are the manufacturer’s agents for performing warranty repairs. When you bring your car in for a defect, the dealer diagnoses the problem, orders parts from the manufacturer, and performs the repair — all paid for by the manufacturer under the warranty.
Each dealer visit for the same problem counts as a repair attempt. After a reasonable number of attempts (typically 2 for safety defects or 4 for other issues), you may qualify for a lemon law buyback.
Dealers Create Your Documentation
The repair orders (also called service invoices) generated by the dealer are the most important evidence in your lemon law case. These documents record:
- When you brought the vehicle in
- What you complained about
- What the dealer found and what they repaired
- How long the vehicle was out of service
This is why documenting your case properly is essential.
When CAN You Sue a Dealer?
While the Lemon Law itself targets manufacturers, there are situations where a dealer may be legally liable:
1. Fraud or Misrepresentation
If the dealer knowingly sold you a vehicle with undisclosed defects, concealed that the vehicle was a previous buyback (lemon), or misrepresented the vehicle’s history, you may have a fraud claim against the dealer. This is separate from a lemon law claim and can result in additional damages.
2. Negligent Repair
If the dealer’s mechanics performed repairs negligently — making the problem worse or creating new problems — you may have a negligence claim against the dealer. This is uncommon in lemon law cases but can arise in extreme situations.
3. Selling a Lemon Buyback Without Disclosure
California law requires that vehicles repurchased under the Lemon Law be branded with a “Lemon Law Buyback” title. If a dealer sells you a previously bought-back lemon without disclosing this fact, you have strong legal claims against the dealer.
4. Breach of Implied Warranty (Used Cars)
Under the Tanner Consumer Protection Act, dealers who sell used vehicles must provide an implied warranty of merchantability. If a used car from a dealer has a serious defect covered by this implied warranty, you may have a claim against the dealer.
What to Do If the Dealer Won’t Cooperate
Sometimes dealers make the lemon law process difficult. Common dealer tactics include:
“We Can’t Replicate the Issue”
Dealers sometimes claim they can’t reproduce the defect, especially for intermittent problems. This still counts as a repair attempt. Make sure the repair order reflects that you brought the vehicle in and described the problem, even if the dealer couldn’t reproduce it.
Tip: If possible, record video of the defect occurring. This can be shown to the service advisor and makes it harder for them to claim they can’t replicate it.
Refusing to Provide Repair Orders
You have the right to receive a copy of every repair order. If a dealer refuses, request it in writing and escalate to the dealer’s general manager. California law requires dealers to provide these documents.
Downplaying the Problem
Dealers may tell you the issue is “normal for this vehicle” or “just how it drives.” If you believe the problem is abnormal, document the dealer’s response and continue bringing the vehicle in for each occurrence. These visits build your case.
Suggesting You Go to Another Dealer
While you can take your vehicle to any authorized dealer for warranty repairs, you’re not required to. Each visit to any authorized dealer counts as a repair attempt against the manufacturer.
Manufacturer vs. Dealer: Who Pays What?
| Expense | Who Pays |
|---|---|
| Warranty repairs | Manufacturer (through the dealer) |
| Lemon law buyback/refund | Manufacturer |
| Your attorney’s fees | Manufacturer |
| Extended warranty claims | Warranty company (not manufacturer) |
| Dealer fraud damages | Dealer |
How to Protect Yourself When Dealing with the Dealer
- Always get a repair order — Even if the dealer says there’s nothing wrong, request a written repair order documenting your visit
- Describe the problem in your own words — Ask the service advisor to write down your exact complaint, not their interpretation
- Note the drop-off and pick-up dates — These determine your out-of-service days
- Request diagnostic trouble codes (DTCs) — Ask that any codes be listed on the repair order
- Don’t accept “normal operation” without documentation — If the dealer says the issue is normal, have them put that in writing
- Keep copies of everything — Never rely on the dealer to maintain your records
Should You Contact the Manufacturer Directly?
Before filing a lemon law claim, you may want to contact the manufacturer’s customer service or “owner relations” department. However, be cautious:
- Do tell them about the problem and ask for help
- Don’t accept a settlement offer without consulting an attorney first
- Don’t sign any documents that waive your lemon law rights
- Do document all communications with the manufacturer
Many manufacturers will offer a “goodwill” gesture (free service, extended warranty, or a small cash payment) to make the problem go away. These offers are almost always far less than what you’re entitled to under the Lemon Law.
Get Help with Your Lemon Law Case
Whether your issue is with the manufacturer, the dealer, or both, an experienced lemon law attorney can help you navigate the process. At Lion Lemon:
- We handle all communications with the manufacturer on your behalf
- We evaluate whether you have additional claims against the dealer
- Our services cost you nothing — the manufacturer pays our fees
- We serve clients across all of California for all manufacturers
Contact us today for a free case evaluation.