California’s Lemon Law has been a crucial protection for drivers dealing with defective vehicles, but big changes have been made with the passing of AB 1755 in September 2024.  These new changes went LIVE on January 1, 2025. This new law makes important updates to the Lemon Law that many believe could make it harder for drivers to get the help they need.  At Strategic Legal Practices let us help you navigate these changes in law and assist you in protecting your rights.

For years, the Lemon Law offered a straightforward process for getting a refund or replacement vehicle, but AB 1755 adds new rules that will be difficult for most to navigate.  Critics say these changes could cause delays, add financial stress, and make it harder to trust the protections that were supposed to help with defective cars.

At Strategic Legal Practices, we understand the California Lemon Law and will help you navigate the new bill’s restrictions so you can get the compensation you deserve. Fill out our free case evaluation or give us a call at 888-757-5366 to get started. 

What is California’s Lemon Law?

Before AB 1755 was passed, California’s Lemon Law, officially called the Song-Beverly Consumer Warranty Act, provided strong protections to people who bought or leased goods, especially cars, that came with a written warranty or were expected to work properly.

This law, which has been around since 1970, was created to make sure that when you buy or lease a new or Certified Pre-Owned (CPO) vehicle, it’s reliable and works as promised. If it doesn’t, the Lemon Law made manufacturers responsible for fixing the issue or replacing the vehicle.

In simple terms, it was a safety net for consumers, protecting them from being stuck with defective cars and ensuring businesses followed fair practices. It gave people confidence that what they were buying was worth their money.

Key Provisions of AB 1755

The rules protecting California drivers under the Song-Beverly Consumer Warranty Act have changed with the passing of AB 1755, and unfortunately, these updates could make things tougher for drivers. Here are the key changes you need to know about:

• Pre-Litigation Notice Requirement — Consumers now must send a written notice to the manufacturer at least 30 days before they can file a lawsuit.
• Why This Hurts Consumers: This extra step can delay justice, leaving drivers stuck with undrivable vehicles and rising repair costs while they wait.
• A Win for Manufacturers: The delay gives manufacturers a strategic advantage, using the additional time to address disputes on their terms and potentially delay or undermine a consumer’s legal recourse.
• What Changed: Before this change, drivers could file a lawsuit as soon as they faced multiple failed repair attempts or if the manufacturer or dealership refused to fix the problem.

What is a pre-litigation notice? This refers to a formal notification that’s given to a person or company before you file a lawsuit against them. The notice is a courtesy to the party you intend to pursue legal action against, giving them additional time to resolve the issue.

• Statute of Limitations — Drivers now have stricter deadlines to take legal action.
• Shorter Deadlines: You must file a claim within one year after your warranty expires and no later than six years from when the vehicle was originally delivered to you.
• Why This Hurts Consumers: If your car develops problems outside these tight timelines, you may have no way to seek help, even if the defect makes your car undrivable.
• What Changed: Previously, you had up to four years from when you first discovered a problem to file a claim, regardless of your warranty or when the car was delivered.

What is an express warranty? An express warranty is a written or verbal guarantee from the manufacturer that they will repair or replace a vehicle if it has continual issues or doesn’t meet industry standards. For example, a ten-year, 100,000-mile powertrain warranty covers key components related to the engine, transmission, and drivetrain.

What is the statute of limitations? This is the time limit in which you can take legal action. If you don’t take action within this time, you’ll lose the right sue.

• Mandatory Mediation — Before drivers can take a manufacturer to court, both sides now have to go through mediation with a neutral third party.
• What This Means: Mediation is meant to help both sides reach an agreement, but it pauses the process of gathering evidence and can delay getting the issue resolved.
• Why This Hurts Consumers: While mediation might work in some cases, it can make the process drag on, leaving drivers stuck with a faulty car and no quick relief.
• What Changed: Before this new rule, drivers could go straight to court without having to try mediation first.

What is mediation? In the context of the legal system, the mediation process involves sitting down with both parties of a legal dispute, as well as a non-biased mediator, with the goal of working out the dispute before making the decision to head to court.

• Limits on Negative Equity — If you owe more on your car loan than the car is worth (called “negative equity”), the new changes could make harder for you, financially speaking. This is often referred to as being “upside down” on the loan.
• What This Means for Consumers: Even if the manufacturer agrees to pay off the car in a settlement, you might still have to cover the extra amount you owe. This can leave you with an even bigger financial problem.
• Why This Hurts Consumers: The new rules under AB 1755 make the legal process longer. During this time, a vehicle has more time to lose value, ultimately increasing the negative equity coupled with financial stress.
• What Changed: While the law didn’t focus on negative equity before, these new delays make it much harder for drivers to avoid bigger financial losses.

Implications of AB 1755

It’s important to remember that consumers pursuing a Lemon Law case are often everyday individuals with busy lives and limited financial resources. When their vehicle becomes inoperable, and the manufacturer or authorized dealer fails or refuses to resolve the issue, it places a significant strain on their finances, disrupting their budget and daily life.

The changes introduced by AB 1755 add additional steps the vehicle owner must take before filing a lawsuit against the manufacturer which also impose strict timelines to act.  With these changes to California’s Lemon Law, seeking legal guidance promptly is more important than ever. The Lemon Law experts at Strategic Legal Practices are here to help you navigate these new challenges with confidence and ease, ensuring you get the support and justice you deserve.

Strategic Legal Practices Fights to Protect Your Rights!  (H2)

Strategic Legal Practices is dedicated to safeguarding your rights.   Our founder, Payam Shahian, and our team of legal experts have been fighting against regressive legislation that threatens to undermine consumer protections. We are committed to ensuring you remain protected from unfair practices.

Alongside delivering robust legal representation, Strategic Legal Practices actively raises awareness about the potential negative impacts of constraining consumer protection bills. We always strive to educate and empower the public while advocating for a fair legal system that protects consumer rights.

If you’d like us to represent your lemon law case, get in touch with us by calling 888-757-5366.