Bought a used car that turned into a nightmare? Your legal protections in California depend entirely on who sold it to you—and the differences are stark.
The Core Truth About Used Car Protection
California’s lemon law protection for used cars breaks down simply: dealer purchases offer real legal remedies, while private sales leave you almost completely on your own. But even with dealer purchases, the specifics matter.
Buying from a Licensed Dealer: What Protection You Actually Get
Implied Warranty of Merchantability
When you buy a used car from a California dealer, you automatically get an implied warranty of merchantability—unless the car is sold “as is.” This warranty means the vehicle must be safe and functional for basic transportation.
Duration: The implied warranty runs concurrently with any express warranty the dealer provides. By law, it lasts a minimum of 30 days and a maximum of 3 months. If the dealer doesn’t specify a duration for their express warranty, the implied warranty defaults to the maximum 3-month period.
What’s covered: The warranty applies to defects that substantially impair the vehicle’s safety, use, or value. This includes engine failure, transmission problems, brake malfunctions, and steering issues.
What’s not covered: Normal wear and tear, minor cosmetic issues, and problems you caused through misuse.
Buy Here, Pay Here Dealers: Stricter Requirements
If you financed directly through the dealership (a “buy here, pay here” arrangement), California law requires them to provide a minimum 30-day or 1,000-mile written warranty. This warranty must cover:
- Engine and transmission
- Brakes and steering
- Electrical systems
- Air conditioning
- Emissions components
This warranty is mandatory—even if the dealer doesn’t give you the paperwork, you’re still protected by law.
When Lemon Law Kicks In for Used Cars
If your dealer-purchased used car has warranty-covered problems that can’t be fixed, California’s lemon law may apply. The standard is whether the dealer has had a “reasonable number of attempts” to fix the problem during the warranty period.
The Lemon Law Presumption: Primarily for New Vehicles
California law includes specific “presumption” guidelines that help determine when repair attempts are reasonable. Under the Tanner Consumer Protection Act (California Civil Code § 1793.22), a vehicle is presumed to be a lemon if problems occur within 18 months or 18,000 miles (whichever comes first) of delivery and meet one of these criteria:
- Four or more repair attempts for the same problem, or
- Two or more attempts for a serious safety defect that could cause death or injury, or
- Vehicle out of service for 30+ days for warranty repairs
Important limitation: The Tanner Act presumption technically applies to “new motor vehicles” by its own terms. However, this doesn’t mean used cars lack protection.
How This Applies to Used Cars
For used vehicles purchased from dealers with warranties, the lemon law still provides protection—but courts evaluate these cases based on all the circumstances rather than relying on the statutory presumption. Factors courts consider include:
- The severity of the defect
- The number of repair attempts made
- How long the vehicle was out of service
- The length and terms of the warranty coverage
Critical timing for used cars: The defect must first appear within the warranty period. Since used car warranties are typically short (30 days to 3 months for most dealer sales, or 30 days/1,000 miles for Buy Here Pay Here), you must document problems immediately.
Bottom line: While the specific 18-month/18,000-mile presumption was designed for new vehicles, used car buyers with dealer warranties can still pursue lemon law claims if the dealer fails to fix substantial defects after reasonable repair attempts during the warranty period.
The “As Is” Exception
Dealers can sell vehicles “as is” to avoid the implied warranty—but this isn’t absolute. If the dealer certifies the vehicle, provides any written warranty, or sells you a service contract, they cannot disclaim the implied warranty. Many consumers don’t know what “as is” actually means in California.
Contract Cancellation Option
The two-day cancellation right you may have heard about is not automatic. Dealers can offer this as an optional add-on for a fee. If you purchase this option, you can return the vehicle within two business days for any reason. Most dealers charge for this option, so factor it into your negotiations.
Other Dealer Protections
Dealers must disclose material facts about the vehicle, including accident history, frame damage, and known defects. If a dealership fails to disclose important information, you may have grounds for fraud or misrepresentation claims beyond lemon law.
Private Seller Purchases: Buyer Beware
Private party sales in California come with virtually no lemon law protection. Period.
No warranty: There’s no implied warranty, no mandatory disclosure requirements, and no lemon law buyback rights.
Your only recourse: If the seller knowingly lied about the car’s condition or concealed major defects, you might have a fraud claim. But proving the seller knew about problems and intentionally hid them is difficult and expensive. Learn more about what to do if a private seller lied.
Small claims court: For losses under $12,500 (or $6,250 if you’re a business), you can file in small claims court without an attorney. However, you’ll need clear evidence of fraud or misrepresentation.
Gray Areas: Curbstoners and Unlicensed Dealers
Curbstoning: Illegal but Common
“Curbstoners” are unlicensed individuals who regularly buy and sell cars while posing as private sellers. This is illegal in California. If you can prove someone is curbstoning, you may have additional legal options.
Red flags:
- Seller has multiple vehicles listed
- Title isn’t in the seller’s name
- Seller refuses to meet at their home
- Same phone number on multiple ads
- Seller seems unusually knowledgeable about financing and car values
If you suspect curbstoning, contact the DMV and consult an attorney.
What You Should Do
When Buying from a Dealer
- Read the buyer’s guide carefully. It must be displayed on the vehicle and shows whether there’s a warranty or if it’s sold “as is.”
- Get everything in writing. Verbal promises mean nothing in court.
- Act fast if problems arise. Used car warranties are short. Document issues immediately and return to the dealer for repairs.
- Keep detailed records. Save all repair orders, invoices, and correspondence. Note dates and days the vehicle was out of service.
- Know when to escalate. If the dealer can’t fix the problem after reasonable attempts during the warranty period, demand a refund or replacement in writing.
When Buying from a Private Seller
Since you have minimal legal protection:
- Get a pre-purchase inspection by an independent mechanic. Worth every penny.
- Run a vehicle history report (Carfax or similar) to check for accidents, floods, or title problems.
- Test drive thoroughly in various conditions to identify potential issues.
- Budget for repairs. The lower purchase price should account for repair risk and no warranty protection.
When Problems Surface
With a dealer purchase:
- Return immediately for warranty repairs
- Document every visit and repair attempt
- After multiple failed repairs during the warranty period, send a formal demand letter for a refund or replacement
- Consult a lemon law attorney if the dealer resists
With a private purchase:
- Gather evidence of any false statements made during the sale
- Consider small claims court for amounts under $12,500
- Accept that pursuing fraud cases is often more expensive than the car’s value
The Bottom Line
California provides lemon law protection for used cars purchased from licensed dealers—but only during the brief warranty period. Private party sales offer almost no protection, which is why they’re cheaper.
Understanding your rights before problems arise saves time, money, and frustration. If you’re dealing with a defective used car bought from a dealer, you have real legal options worth pursuing.
Need Help With a Lemon Car?
If you purchased a used car from a California dealer and it’s giving you serious problems, you may have legal options. Consumer Action Law Group offers free consultations to review your case and explain your rights under California’s lemon law.
Call (818) 254-8413 for a free consultation.
