Does the California Lemon Law Cover Leased Cars?

TL;DR: Yes, California’s Lemon Law applies to leased cars—new or used—as long as the vehicle is still covered by the manufacturer’s warranty. If your leased car has been in the shop repeatedly for the same issue or is unsafe to drive, you may qualify for a refund, replacement, or cash settlement.

Two people shaking hands in front of a car.

California Lemon Law & Leased Cars: What You Need to Know

Many people assume Lemon Law protections only apply to purchased vehicles. That’s not true. Under California’s Song-Beverly Consumer Warranty Act, leased cars are also covered—as long as the defect occurs during the manufacturer’s warranty period and meets other requirements.

Whether you leased a new EV, SUV, or certified pre-owned sedan, you have rights if your car turns out to be defective.

What Leased Vehicles Qualify?

The vehicle was leased in California for personal, family, or household use
It’s still under the original manufacturer’s warranty (even if it’s used)
The vehicle has a substantial defect that impacts safety, value, or use
The manufacturer has had a “reasonable number of attempts” to fix the problem

Note: The Lemon Law applies even if the car was later returned to the dealership—as long as the problem arose during the lease and was documented properly.

Real Example: $25,700 Settlement for a Defective Leased EV

A Los Angeles client leased a new electric sedan. Within weeks, it developed a drivetrain issue that left them stranded twice. Despite two software updates and a full motor replacement, the issue persisted.

We filed a claim and recovered:

$19,300 in lease payments and fees
$3,200 in incidental costs (rental car, towing, charging expenses)
$3,200 in civil penalties due to the manufacturer’s delayed response

Total compensation: $25,700

3 Things to Do If Your Leased Vehicle is a Lemon

Gather Documentation: Service records, lease agreement, repair orders, and mileage at each visit.
Track Time Out of Service: Days the vehicle was in the shop help prove impact and delay.
Speak with a Lemon Law Attorney: We’ll evaluate your case and help you pursue a refund, replacement, or cash settlement.

Deadline tip: You have four years from when you first noticed the defect to file your claim. Don’t wait.

Common Questions About Leased Cars & Lemon Law

Can I still file if I already returned the car?: Yes—if the issue happened during the lease and is documented, you can still recover damages.
What if I leased a certified pre-owned vehicle?: CPO vehicles are eligible as long as they’re still covered by the original or extended manufacturer’s warranty.
Will I get reimbursed for lease payments?: Yes. You may recover lease payments, taxes, fees, and incidental costs. A mileage offset may apply for early use before the defect.
What if the dealer said the Lemon Law doesn’t apply to leases?: They’re wrong. Leased vehicles are specifically protected by the law under Civil Code §1790 et seq.