Lemon Law and Extended Warranties: Do They Help or Hurt Your Case?

For many people in Los Angeles, their vehicle is one of their largest financial investments. Many car owners seek to protect that investment by purchasing an extended warranty, which continues the repair and maintenance coverage originally provided by the manufacturer’s warranty.

An extended warranty will ensure that you do not pay for covered repairs to your vehicle, but nothing guarantees that your vehicle won’t need repairs. When a motor vehicle in California has problems requiring repeated repairs or that cannot be fixed, the owner may be able to turn to protections offered by California’s Lemon Law.

But how will having an extended warranty affect a potential Lemon Law claim in Los Angeles? It may complicate your case, but an extended warranty doesn’t necessarily change your legal rights under the Lemon Law – as long as the problem starts while still covered under the original manufacturer’s warranty.

If you are tired of dealing with never-ending car repairs and the details of automotive warranties, the Lemon Law attorneys of The Barry Law Firm can help you like we’ve helped thousands of California car owners. If you are experiencing car problems covered by your original warranty that the dealership has been unable to repair, contact us for a free consultation about your rights under California’s Lemon Law.

What Is the California Lemon Law?

The California Lemon Law says that a vehicle is considered a lemon if the manufacturer cannot resolve a substantial defect covered by the original manufacturer’s warranty after a reasonable number of repair attempts. The issue must affect the vehicle’s usability, safety, or value.
The owner or lessee has the right to demand that the manufacturer buy the lemon vehicle back. The manufacturer is also required to pay the car owner for all reasonable costs incurred because of the faulty vehicle, such as for repair, towing, and rental car costs.

A reasonable number of repairs can vary from case to case. If the defect poses a significant danger, two or more attempts to fix the problem are typically considered reasonable under California Lemon Law. Manufacturers may be entitled to more than two attempts to fix the problem if it’s less severe. In certain circumstances, a vehicle may automatically qualify as a lemon if it is out of service for an inordinate amount of time.

The law applies to new and leased vehicles as long as the problem was covered by the manufacturer’s original warranty when it first occurred and was reported. If the manufacturer’s warranty expires after that, the owner may still pursue a Lemon Law claim. However, California’s Lemon Law does not apply if the problems start after the original manufacturer’s warranty has expired and only the extended warranty is still valid.

Extended Warranties vs. Manufacturer Warranties

It is important to distinguish between the manufacturer’s original warranty and an extended warranty if you are considering a Lemon Law claim.

Manufacturer’s Warranty

A manufacturer’s car warranty is provided with the vehicle’s purchase price and generally covers vehicle defects or failures for a period of time after purchase. They usually do not cover the cost of routine maintenance, parts susceptible to normal wear and tear, or abuse.

Extended Warranty

Extended warranties — also known as service contracts — are optional add-on products available for an additional fee from the dealership or third parties (e.g., auto clubs and insurance companies). They extend the coverage on a new car beyond the manufacturer’s warranty limits. Plans vary in length of coverage, what they cover, and price.

Obtaining an extended warranty may reduce the financial stress of buying a car, particularly for those who own unreliable models. It’s essential to understand a service contract’s small print, though. Extended warranties often have many restrictions, including what’s covered and where the vehicle may be serviced. They also do not extend your Lemon Law protections after the original manufacturer’s warranty expires.

The Potential Impact of Extended Car Warranties on Lemon Law Claims

A California Lemon Law claim must be based on an unrepairable problem with a motor vehicle covered by the original manufacturer’s warranty. The vehicle’s problem must also have originated while the manufacturer’s warranty was still valid.

An extended warranty is separate from a manufacturer’s warranty. It has no impact on a California Lemon Law claim. However, it may make it harder for consumers to tell whether they still have a manufacturer’s warranty covering their issue.

On the plus side, having an extended warranty may require the manufacturer (through a dealership) to continue to try to repair your vehicle at no cost to you. This will depend on your service contract’s coverage, but many provide “bumper-to-bumper” coverage.

On the downside, an extended warranty gives a dishonest dealership or manufacturer’s representative ammunition for obscuring the facts and denying your rights.

For example, they may tell you that work on your car has been done under your service contract and not the manufacturer’s warranty, giving you no basis for a Lemon Law claim. Or you may be told that the extended warranty covers your vehicle’s needs, but your Lemon Law rights expired when the manufacturer’s warranty ran out – even though the problem started before it expired. These are false statements, but few consumers fully understand California’s Lemon Law or the fine points of motor vehicle warranties.

If you suspect your vehicle’s problems qualify it as a lemon under California law, you should consult an experienced California Lemon Law attorney. At The Barry Law Firm in Los Angeles, we focus our practice entirely on California Lemon Law claims and have helped thousands of consumers recover their investments in faulty motor vehicles.

What Can a CA Lemon Law Attorney Do for You?

One or more members of The Barry Law Firm’s team of experienced Lemon Law experts would be happy to meet with you for a free initial consultation about a potential claim. In fact, if we can pursue a claim for you, we will do it at no charge to you.

Let The Barry Law Firm help you by:

• Assessing your case – We’ll confer with you and review the terms and conditions of your vehicle’s purchase or lease contract, warranties, repair records, and other documents to determine the potential for you to file a successful Lemon Law claim.
• Preparing your claim – We can explain and help you take the steps required to pursue a California Lemon Law claim, if appropriate for you.
• Gathering evidence – A Lemon Law case is built on records of repair attempts, correspondence between the car owner and dealership, and the costs incurred by the owner due to loss of use of their vehicle. We can help you organize documents you have and obtain materials the dealership or manufacturer possesses. We can also research and compile information about similar cases, problems, or recalls pertaining to your vehicle’s model and prepare expert witnesses in case your claim goes to trial.
• Aggressively negotiating – When possible, it’s better to negotiate a settlement to a Lemon Law claim and avoid going to trial. We will press your vehicle’s manufacturer to settle and present all reasonable offers to you with our advice. Whether to accept a settlement offer will always be your decision.
• Representing you in court – If a trial is required to settle your Lemon Law claim, we will be prepared to present a strong and persuasive case on your behalf.
• Maximizing your recovery – In addition to a refund of what you have paid for your car, you also have a right to be compensated for towing, rental cars, and other out-of-pocket costs incurred due to your defective vehicle. We’ll calculate all of your recoverable losses and demand payment of full damages to you. And, as California law provides, we’ll demand that your vehicle’s manufacturer be ordered to pay your legal fees.

Call Today for Free Help with a Lemon Vehicle

It is important to note that there is a limited time to file a Lemon Law claim against a manufacturer, so don’t hesitate to contact us. The Barry Law Firm is devoted solely to helping consumers resolve ongoing car problems by exercising their rights under California’s Lemon Law. If your vehicle has had issues covered by the original manufacturer’s warranty that their dealership has been unable to correct, you may be due a refund of money spent on the faulty vehicle.

Don’t let the dealership or others use an extended warranty to obscure the facts. The Barry Law Firm can fully explain and protect your rights and seek compensation for you. Contact us for a fast and free legal consultation and pursuit of your California Lemon Law claim. Reach out online or call us today.