You may have heard of pursuing a legal claim due to the “diminished value” of a car. You may also know that the San Diego Lemon Law protects car owners or lessees when a warranty-covered defect that the manufacturer cannot repair after a reasonable number of attempts substantially affects their vehicle’s value. But how exactly does a diminished value claim in California differ from a Lemon Law claim? Contact The Barry Law Firm for a FAST & FREE consultation to learn more and discuss your options for filing a Lemon Law claim.
What Is the California Lemon Law?
The California Lemon Law provides financial relief to consumers who purchase or lease vehicles that suffer from a serious issue that the vehicle’s manufacturer or their authorized dealer cannot fix after a reasonable number of repair attempts. What is considered a “reasonable” number of repair attempts varies under the specific circumstances of a case.
A defect can qualify a car as a lemon if it is covered by the manufacturer’s original warranty and affects the vehicle’s use, safety, or value. Under California’s Lemon Law, the owner or lessee can demand that the vehicle manufacturer buy back the lemon car and refund them for what they have spent on the defective vehicle, including for:
- Money paid to purchase or lease the car, including down payments and monthly lease or auto loan payments
- Sales and use taxes
- License and registration fees
- Expenses related to the vehicle’s defects, including towing fees, out-of-pocket repair expenses, and rental car fees
- Attorney’s fees and legal costs incurred to pursue the Lemon Law claim
What Is a Diminished Value Claim in San Diego, CA?
A diminished value claim refers to a legal claim that a vehicle owner may pursue after they are in a car crash caused by another driver. Diminished value claims provide compensation to vehicle owners for the loss of value in their car after an accident. There are three main ways a vehicle’s value may be reduced:
- Inherent or stigma-related value loss – People often view vehicles that have undergone repairs after car accidents as inherently less valuable than those that have not been in collisions. They may worry whether an issue in the vehicle caused the crash or whether damage from the accident has made the car less safe or reliable. An inherent or stigma-related loss claim compensates a car owner for their vehicle’s reduced value due to these concerns.
- Immediate value loss – An accident-damaged vehicle will have a lower value than an undamaged or repaired car. An immediate diminished value claim compensates car owners for the loss of the car’s value before repairs.
- Repair-related value loss – Sometimes replacement or aftermarket parts used to repair an accident-damaged vehicle may not match the quality of the original equipment manufacturer (OEM) parts. In other cases, they may create visible signs of accident repairs (such as mismatches in paint or bodywork). Repair-related diminished value claims compensate vehicle owners for this loss of value.
Differences Between Diminished Value Claims and Lemon Law Claims
Diminished value and Lemon Law cases have several key differences, including:
- Origin – A diminished value claim arises from a car accident, as the crash and the damage it causes to a vehicle can reduce its value. On the other hand, a Lemon Law claim occurs when a vehicle leaves the factory with a serious warranty-covered defect that the manufacturer cannot fix after a reasonable number of repair attempts.
- Liable parties – The driver or other parties at fault for a car crash may be liable under a diminished value claim. However, a vehicle manufacturer can be held accountable by an owner or lessee in a Lemon Law claim.
- Recoverable compensation – Diminished value claims enable vehicle owners to recover compensation for the loss in value of their cars. Lemon Law claims allow owners to recover what they paid for their vehicles, plus expenses related to repair attempts and legal fees for their case.
Which Claim Should You File?
You can file a diminished value claim if you’ve had an accident caused by another driver, as you may have the right to recover compensation from that driver or their insurance company for the loss of value in your vehicle due to the collision and the damage it caused. Alternatively, you may have a Lemon Law claim if you’ve purchased or leased a vehicle with a substantial defect covered by the manufacturer’s original warranty, which the manufacturer cannot fix after a reasonable number of repair attempts.
What Types of Defects May Warrant a Lemon Law Claim Due to Lost Value?
Any warranty-covered defect that substantially lowers a vehicle’s resale or trade-in value could potentially warrant a California Lemon Law claim, including:
- Water leaks
- Extensive paint defects or body panel misalignments
- Air conditioning or heating system problems
- Defective doors, hinges, and windows
- Faulty warning lights and sensors
- Extreme rattling and other noises
- Malfunctioning electrical or infotainment systems
If you aren’t sure whether your vehicle’s defect qualifies, a Lemon Law attorney from The Barry Law Firm can help.
Our Lemon Law Attorneys Can Help If You Want to File a Lemon Law Claim
A Lemon Law lawyer from The Barry Law Firm can help you file a San Diego Lemon Law claim by:
- Assembling the evidence needed to prove that your car has a qualifying condition that makes it a lemon
- Calculating your expenses and losses, including car payments, taxes, fees, and repair costs
- Negotiating with the vehicle manufacturer on your behalf to take the stress off your shoulders
- Pursuing your claims as long as necessary, even when that means going to court
When you choose The Barry Law Firm to handle your case, we’ll take care of everything for you – and we’ll do it all at no cost to you. Regardless of the outcome of your claim, you’ll never get a bill from us.
Call The Barry Law Firm for Lemon Lawyers You Can Trust
When your vehicle has suffered a warranty-covered defect that the manufacturer has failed to correct after a reasonable number of attempts, and your vehicle’s resale or trade-in value has significantly decreased because of it, you may qualify for financial relief under California’s Lemon Law. Contact The Barry Law Firm today for a free, no-obligation consultation with an experienced Lemon Law attorney to learn more about your rights to seek compensation for loss in car value.
