What Is the Average Lemon Law Settlement In California?

Buying a new car is supposed to be a satisfying experience, with the heady combination of new-car smell and knowing that you have years of smooth, trouble-free driving ahead. When an unexpected mechanical or electrical problem arises with a new car, it’s disappointing, but when the problem recurs after the first repair attempt, you might begin to smell a lemon. Speaking with an experienced California lemon law attorney can help you understand your rights and next steps if this happens.

Some lemon car owners in California wonder if filing a lemon law claim is worthwhile. What is the average settlement for a California Lemon Law claim?

A Lemon Law Settlement Depends on Many Factors

The average California Lemon Law settlement is based on the cost of the defective vehicle. Generally, the settlement includes a “buyback” or “repurchase” of the subject vehicle. This includes a reimbursement of all amounts paid or payable for the vehicle, minus a statutory mileage offset based on the miles driven before the first repair attempt for the defect. Several factors affect the value of a lemon law settlement.

There is no reliable “average” lemon law settlement amount because each claim is unique and depends on individual factors, such as the following:

• The type and severity of the defect
• Whether or not the defect caused a safety concern
• The value of the make and model of the vehicle
• The vehicle’s age and mileage
• The number of failed repair attempts made on the vehicle
• Any additional expenses caused by the defective vehicle, such as transportation costs, vehicle towing, and registration renewal expenses.

The total number of days a vehicle spent in repair shops or out of use due to the mechanical defect, as well as any manufacturer delays in response or cooperation, also significantly impacts the total amount a claimant recovers in a California Lemon Law settlement.

Maximizing a California Lemon Law Settlement

A lemon law claimant can take steps to maximize their settlement by acting quickly once they suspect that their vehicle is a lemon. Since the manufacturer is entitled to a deduction based on miles driven before the first repair attempt, it is important to take the vehicle to the dealership for repair as soon as you experience symptoms of the defect. Delayed repair attempts will reduce the amount of the claimant’s Lemon Law refund. A car owner may file a lemon law claim for a vehicle that’s still under warranty and has had four or more failed repair attempts or two or more failed repairs for a defect that is a safety hazard. A car that has spent 30 or more non-consecutive days in a repair shop may also qualify.

A lemon-car owner may streamline their claim and increase their chances of a full and fair lemon law settlement by carefully documenting all repair attempts, keeping copies of their communications with the manufacturer, and documenting evidence of any related expenses.

Most lemon law claims take several months to resolve, but compiling evidence of the expenses and inconvenience of the defect helps to advance your claim more quickly.

How Can a California Lemon Law Lawyer Help?

The Lemon Law attorneys at Young & Young offer a free evaluation of your lemon law case. The claimant has nothing to lose by hiring legal representation, because the manufacturer pays all legal fees. Call Young & Young, APC to discuss which outcome is right for your circumstances. Some claimants choose a buyback of their purchase price or a “cash and keep” settlement based on the diminution in value of the vehicle due to the defect.