Lemon Law vs. Used Car Warranty: What's the Difference?
Understanding Your Vehicle Protections
When it comes to vehicle defects, consumers often confuse the California Lemon Law with used car warranties. While both offer protection, they work very differently. Here’s what you need to know.
California Lemon Law (Song-Beverly Act)
The Song-Beverly Consumer Warranty Act — commonly called the California Lemon Law — applies primarily to new vehicles and certified pre-owned vehicles that are still under the manufacturer’s original warranty.
Key Features:
- Covers new and certified pre-owned vehicles
- Applies when the vehicle is under the manufacturer’s warranty
- Requires the manufacturer to refund or replace the defective vehicle
- Manufacturer must pay your attorney’s fees if you win
- Covers substantial defects that impair use, value, or safety
Used Car Warranties
Used car warranties, also known as service contracts, are separate agreements that may be purchased when buying a pre-owned vehicle. These are governed by different rules.
Key Features:
- Covers specific components listed in the warranty contract
- Duration and coverage vary by contract
- Claims are handled through the warranty provider, not the manufacturer
- May have deductibles and coverage limits
- Does not automatically entitle you to a refund or replacement
Does the Lemon Law Apply to Used Cars?
Yes, in certain cases. California’s Lemon Law can apply to used vehicles if:
- The vehicle was sold with a remaining manufacturer’s warranty
- The vehicle is a certified pre-owned (CPO) vehicle
- The defect occurred during the warranty period
Additionally, the Tanner Consumer Protection Act extends some protections to used cars purchased from dealers with implied warranties.
Which Protection Is Right for You?
| Feature | Lemon Law | Used Car Warranty |
|---|---|---|
| Vehicle type | New / CPO | Any used vehicle |
| Remedy | Refund or replacement | Repair coverage |
| Attorney fees | Manufacturer pays | Not applicable |
| Duration | Manufacturer warranty period | Contract-specific |
Get Expert Advice
Not sure which protection applies to your situation? The experienced attorneys at Lion Lemon can evaluate your case for free and help you understand your rights.