Bought a Used Car from Dealer with Problems? You Have Certain Rights!
Did you recently purchase a used car “as-is” from a car dealership, only to find that it keeps having problems? If so, you may be feeling frustrated and unsure of what to do. But don’t worry, you have legal rights as a consumer. In this article, we’ll walk you through the steps you can take to address the issues you’ve experienced with your used car. You have the right to have the car repaired or to receive a refund if the seller is unable to fix the problems. Keep documentation of all communication and repairs, and don’t be afraid to assert your rights and seek legal action if necessary.
If you’ve purchased a defective car from a dealer in California please contact Cali Lemon Lawyers for a free used car lemon law case evaluation.
Purchasing a Vehicle “As-is” Provides You Certain Rights
Consumers who purchase a vehicle “as-is” from a seller, whether it be a car dealership or an individual, do not have the same protections as they would if they were buying a car that is covered by a warranty. An “as-is” sale means that the seller is selling the vehicle in its current condition and is not responsible for any repairs or issues that may arise after the sale. The buyer is accepting the car “as is” and is responsible for any repairs or problems that occur after the purchase. However, there are some exceptions to this rule.
In some states, the “implied warranties” of the sale still apply to “as-is” sales. These implied warranties state that the seller has promised that the car is fit for its normal use and that any defects that existed at the time of the sale will be repaired at the seller’s expense. The consumer has the right to have the car repaired or to receive a refund if the seller is unable to repair the problems. The consumer should provide written notice to the seller detailing the problems and allowing the seller a reasonable opportunity to fix the issues. If the seller fails to do so, the consumer may have the right to take legal action. It is important for the consumer to keep documentation of all communication and any repairs made in order to strengthen their case.
Used Car Lemon Laws Differ from One State to Another
Used car lemon laws exist in every state, offering security to used car drivers. The lemon law in California mandates auto dealers to address faults with used cars during the first few weeks of ownership.
If you are in this situation, it is essential to know your legal rights. Read on to learn more about the used car lemon law and what rights you have when buying a used car.
Laws Governing Used Cars Aren’t Always Specific
When it comes to used car sales, some precise lemon law requirements that apply to new cars are left unclear. Therefore, lemon law cases that involve secondhand vehicles can be more complex, and customers may have a tougher time pursuing them.
Suppose a manufacturer cannot repair a vehicle after a realistic number of attempts. In that case, the manufacturer must either give the customer a replacement or refund the sales price. This sales price must account for the use of the car before the defect was discovered.
The Formula for this Calculation Isn’t Always Clear
The law establishes a formula for determining this amount in the event of new vehicle acquisitions. However, this is not the case when purchasing a secondhand car, which is why it is always advisable to contact a lemon law attorney to help ensure that your legal rights are protected during this process.
Does the Used Car You Purchased from a Car Dealer Qualify as a Lemon in California?
As mentioned before, California lemon law governs and protections used car buyers’ rights. However, these laws also protect car dealers from unfair claims made on used cars. The used car lemon law demands that certain requirements be met if the secondhand car is to qualify as a lemon.
Lemon Law Requirements
If you bought a used car that fits the following criteria, you are eligible for a refund or an exchange, according to the California Department of Consumer Affairs:
- A dealer or manufacturer’s warranty is included with the vehicle
- The vehicles purchased have major flaws
- You purchased the car from a dealer, and it was not a private sale
- The secondhand vehicle has been in for an unreasonable amount of time for repairs
- After a 2 or more repairs, the fault cannot be corrected
Used Car Problems Within 30 days
If a consumer has experienced used car problems within 30 days of purchasing the vehicle, they may be protected by the “implied warranties” of the sale. These implied warranties state that the seller has promised that the car is fit for its normal use and that any defects that existed at the time of the sale will be repaired at the seller’s expense. The consumer has the right to have the car repaired or to receive a refund if the seller is unable to repair the problems. The consumer should provide written notice to the seller detailing the problems and allowing the seller a reasonable opportunity to fix the issues. If the seller fails to do so, the consumer may have the right to take legal action. It is important for the consumer to keep documentation of all communication and any repairs made in order to strengthen their case.
California’s civil law was revised in 2013, requiring “buy here, pay here” sellers to provide a dealer warranty for the first 1,000 miles driven or for the first 30 days, depending on which comes first. Should the car dealer be unable to remedy motor vehicle problems within the first 30 days or 1,000 miles, the car owner is entitled to a reimbursement.
The Types of Vehicles that Qualify as a Lemon
The owners of secondhand vehicles in California who acquired their cars predominantly for “private, family, or home” uses are legally protected from defective manufacturing under the California Lemon Law.
This law also applies to used cars bought for commercial reasons, provided that the total mass of the vehicle is less than 10,000 pounds and the company has no more than five vehicles licensed in its name.
SUVs, Cars, RV trailers, and all types of watercraft are all considered “vehicles” protected by this law.
It is important to remember that a vehicle must have a warranty to qualify, and this doesn’t need to be a manufacturer’s warranty but is also covered by a dealer warranty.
How Many Repair Attempts Must Be Made Before a Customer Can Expect a Refund or Replacement?
The manufacturer should repair the vehicle within a fair number of attempts. Failure to repair the used vehicle warrants a replacement or a buyback under the lemon law. However, you may be wondering how many attempts are reasonable.
Major Faults
The answer lies in the type and nature of the problem. Manufacturers typically only get two opportunities to resolve the issue for a major fault that impacts the vehicle’s safety.
This would be the case if the problem were with the braking system, power steering, gearbox, motor, or any other critical system. Suppose the manufacturer is unable to repair the vehicle in one or two attempts. In that case, it is required to issue a refund.
Persistent Defects
Suppose a persistent flaw in the car poses a risk of death or serious physical injury to its occupants. In that case, two or more attempts at repairing the flaw are considered acceptable before reimbursement is necessary.
Should more than four attempts have been made without any resolution, compensation is necessary. Additionally, the criteria have been reached if the vehicle has been in the workshop for repair for 30 days or more and the issue has not been rectified.
Most Used Cars Bought from Car Dealers Come with an Express Warranty or Power Train Warranty
Understanding the types of warranties that dealers often issue can help you understand your rights. You can find the details of your warranties by checking the buyer’s guide given to you when you make the purchase.
The sections below discuss two of the most common warranties: express and powertrain warranties.
Express Warranty
If a secondhand vehicle or truck is sold to a customer with an express warranty, California’s lemon law immediately imposes an implicit warranty of merchantability.
This is a simple and basic warranty or service contract that offers the guarantee that the car can provide safe transportation.
It is essentially a promise that the dealer will conduct the necessary replacement or repairs for any defective components within an allotted period. If a used car owner experiences a problem with their vehicle within that time, they are entitled to these services.
Powertrain Warranty
Powertrain warranties are issued by manufacturers. Unlike an express warranty, which is a short-term warranty, a powertrain warranty is an extended warranty, lasting for up to 10 years or 100,000 miles in certain cases.
This warranty is essentially a promise the manufacturer makes to repair or replace the vehicle’s powertrain should it become damaged or worn and is often included in the sales contract.
Other Warranties
Most dealers also provide the 30-day or 1,000-mile warranties described above. Even the most basic and smallest warranties are usually sufficient to enforce an implied contract on car deals.
As is customary, dealer warranties typically cover specific parts of a vehicle. If one of these parts has significant flaws, the dealer is required to repair it within a reasonable amount of time or offer you a refund.
“As-is” Buyer Disclosures May Not Let Dealers Off the Hook
Suppose a dealer sells a secondhand vehicle to a customer with any form of express warranty. In that case, the only opportunity for the dealer to avoid the implicit warranty of merchantability is to plainly – and correctly – identify the vehicle as an “as-is” car while it is on exhibit in the dealership.
According to California lemon law, all other methods of removing the implied warranty of merchantability are unsuccessful.
Many dealers, for example, require customers to sign “as-is” contracts when purchasing motor vehicles in order to deceive them into believing their vehicles were bought as they were.
However, signing such an agreement means nothing if the car was not correctly marked as an “as is” car.
Labeling Requirements
In order for a dealer to forgo any future claims, it must mark the vehicle clearly as an “as-is” purchase so that anyone buying a used car knows exactly what they’re getting themselves into before the car purchase.
Here are some of the labeling requirements that dealers are required to follow when marking a vehicle in the dealership:
- The vehicle must be marked as an “as-is” or “with faults” vehicle
- Buyers are responsible for repairing or replacing defective parts
- A buyer enters into the sale at his or her own risk
Because the Department of Consumer Affairs takes labeling so seriously, dealers who fail to properly mark cars as “with faults,” are liable for the repair and replacement of any defective parts, subject to the warranty.
Tips for Those Who Have Purchased a Lemon
If you have purchased a lemon, there are certain steps you can take to ensure that your legal rights are protected. Here are a few tips to help you:
- Maintain records of your sales agreement, warranties, defects, and the details of the attempts made to fix those defects
- Keep a record of the claim made to the manufacturer
- Avoid arbitration, which is a private way to solve the matter that favors businesses over consumers
- Enlist the help of an experienced lemon law attorney to help you fight for your rights
Need Help Understanding the Car Buyer’s Bill of Rights in California?
Whether you purchase a used car as a cash sale or as a vehicle credit applicant, you should know your rights. A knowledgeable and experienced lemon law attorney can help you better understand your legal rights when it comes to used cars.
An attorney can also help you understand your options if your recently purchased used car turns out to be a genuine nightmare and issues begin to surface days or weeks after the sale.
If your secondhand vehicle is still covered by a warranty and has defects, take action to preserve your legal rights by contacting the Cali Lemon Lawyers by Prestige Legal Solutions, P.C. today!
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This article did not answer a key question: Is a dealership that sells a car “as is” required to reveal known defects in the car before the sale?