TL;DR: Under California’s Lemon Law, you may be entitled to compensation including a vehicle buyback (covering down payment, monthly payments, registration, taxes), a vehicle replacement, incidental costs (like towing and rental cars), and potentially civil penalties up to two times your actual damages. Compensation varies by case, so documentation is key.
Types of Compensation Available
- Buyback: Refunds your down payment, monthly payments, taxes, registration, and incidental expenses. A mileage offset may apply.
- Replacement: Manufacturer provides a comparable new vehicle at no cost, minus mileage offset.
- Incidental Costs: Reimbursement for towing, repair attempts, ride-shares, rental cars, or DMV fees.
- Attorney’s Fees: If you win, the manufacturer must cover your legal fees.
- Civil Penalties: If the manufacturer willfully violates the law, you may be awarded up to twice your actual damages (Cal. Civ. Code §1794(c)).
Real Client Example
In 2024, a Bay Area client received a $39,250 settlement for a defective EV leased vehicle. The breakdown included:
- $4,500 down payment reimbursement
- $11,200 lease payoff
- $950 in towing, DMV, and rental expenses
- $12,600 civil penalties
- $10,000 attorney’s fees (covered by the manufacturer)
What to Do If You Think You’re Owed Lemon Law Compensation
- Collect repair invoices, lease or purchase paperwork, and communications with the dealer or manufacturer.
- Track how many days the vehicle has been in the shop.
- Request a final repair attempt and consult a Lemon Law attorney right away.
California’s statute of limitations for Lemon Law claims is four years from when you knew or should have known the vehicle was a lemon (Cal. Civ. Code §1793.2(d)).
Need Help? We’re Here to Fight for What You’re Owed
You don’t have to figure this out alone. If you believe you bought or leased a lemon, contact us for a free case review. We don’t charge unless we win your case.
Written by: Neama Rahmani, Esq. — President of West Coast Trial Lawyers, CA Bar #223819
