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Understanding the California Lemon Law: A Guide for Consumers

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What If the Dealer Can’t Fix My Car? Loaners, Refunds, and Next Steps

October 29, 2025 by Chuck Panzarella

What If the Dealer Can't Fix My Car? Loaners, Refunds, and Next Steps

You’ve made four trips to the dealer for the same problem. Your car’s been in the shop for weeks. The technicians keep saying they’re “working on it” or “waiting for parts.” Meanwhile, you’re juggling rental cars, missing work, and wondering if you’ll ever get this resolved.

When a dealer can’t fix your car, California’s lemon law provides specific rights and remedies. Understanding these protections can make the difference between months of frustration and getting real solutions.

Understanding “Reasonable Repair Attempts” Under California Law

California’s lemon law doesn’t require dealers to fix your car forever. There are legal limits.

The Legal Standards

The Tanner Consumer Protection Act (part of the Song-Beverly Consumer Warranty Act) creates a presumption that your vehicle is a lemon if, within the first 18 months or 18,000 miles:

  • Four or more repair attempts for the same non-safety defect
  • Two or more repair attempts for defects likely to cause death or serious bodily injury
  • 30+ days out of service due to warranty repairs (doesn’t need to be consecutive)

These are presumptions, not absolute requirements. Your car can still qualify as a lemon even if it doesn’t meet these exact numbers.

What Counts as a “Repair Attempt”

  • Diagnostic time counts: Even if no repair is performed, the time spent diagnosing counts toward your 30 days
  • Parts delays count: Waiting time counts if the vehicle can’t be safely driven
  • Multiple visits for the same problem: Each visit counts as a separate attempt
  • “Could not duplicate” still counts: Even if the dealer says they couldn’t replicate the problem, it’s still a repair attempt

What Doesn’t Count

Routine maintenance (oil changes, tire rotations), problems caused by misuse, purely cosmetic issues, and unrelated repairs don’t count toward lemon law thresholds.

Your Rights During Extended Repairs

About Loaner Vehicles

California lemon law does not guarantee you a loaner vehicle during repairs. However, many manufacturers and dealers provide courtesy loaners, especially for extended repairs. Check your warranty booklet—some manufacturers include loaner vehicle provisions in their warranty terms.

If a loaner isn’t available, you may be entitled to reimbursement for:

  • Rental car fees
  • Rideshare costs for essential transportation
  • Public transportation costs above your normal usage
  • Towing costs related to the defect

Important: Days your vehicle spends in the shop count toward the 30-day threshold regardless of whether you have a loaner vehicle.

Keep Track of Everything

Save all documentation:

  • Every repair order with dates in/out and mileage
  • Loaner or rental agreements
  • Receipts for transportation costs
  • Written communications with the dealer and manufacturer

When to Escalate to a Lemon Law Claim

You should consider taking formal action when:

  • The same problem persists after four repair attempts (two for safety issues)
  • Your vehicle has been out of service for 30+ days
  • The dealer admits they can’t fix the problem
  • The manufacturer isn’t responding to your complaints

The New Written Notice Requirement (Effective July 1, 2025)

Under AB 1755, before you can seek civil penalties in a lemon law lawsuit, you must send written notice to the manufacturer at least 30 days before filing. Your notice must include:

  • Your name and contact information
  • Vehicle Identification Number (VIN)
  • Description of the defect and repair history
  • Dates and details of repair attempts
  • Clear statement that you want the manufacturer to repurchase or replace your vehicle

Send this notice to the address or email provided in your owner’s manual or warranty booklet. The manufacturer then has 30 days to respond.

Your Remedy Options

Buyback/Refund

If your vehicle qualifies, the manufacturer must provide a lemon law buyback. The manufacturer must refund:

  • Your down payment
  • All monthly payments made
  • Payoff of your loan balance
  • Incidental expenses (towing, rental cars)
  • Registration, taxes, and fees

If you leased your vehicle, you’re entitled to similar relief including lease termination and refund of lease payments.

The Usage Deduction

The manufacturer can deduct a “mileage offset” calculated as:

(Mileage at first repair attempt ÷ 120,000) × Purchase price

Example: If you paid $30,000 and first brought the car in at 5,000 miles: (5,000 ÷ 120,000) × $30,000 = $1,250 deduction

Replacement Vehicle

Instead of a refund, you can request a comparable replacement vehicle. If you choose this option:

  • You get a new vehicle of the same make and model (or comparable)
  • A new warranty starts
  • You receive credit for payments already made
  • The manufacturer covers sales tax and registration for the new vehicle

Working with the Manufacturer

When repair attempts fail, escalate to the manufacturer’s customer service:

  1. Find the right department: Look for “Customer Relations” or “Owner Relations”
  2. Have your information ready: VIN, complete repair history with dates, photos of problems
  3. Document every interaction: Names, case numbers, promises made, timelines given
  4. Follow up in writing: After phone calls, send emails summarizing what was discussed
  5. Escalate strategically: Start with customer service, then case manager, then regional manager

Common manufacturer stall tactics include: claiming they’re “researching the problem,” promising new parts that never arrive, or suggesting software updates will fix hardware problems. If you suspect the dealer or manufacturer is being dishonest about your vehicle’s condition or history, learn what to do when a dealer lies to you.

Critical 2025 Changes You Need to Know

California lemon law underwent major changes in 2025 through AB 1755 and SB 26:

New Deadlines (Effective January 1, 2025)

You must file a lemon law lawsuit:

  • Within one year after your express warranty expires, AND
  • No more than six years from your vehicle’s original delivery date

This is a dramatic change from the previous four-year statute of limitations. These tight deadlines mean you need to act quickly.

Mandatory Mediation

If you file a lawsuit, both sides must participate in mediation within 90-150 days. Litigation is paused until mediation is complete.

Manufacturer Opt-In System

Some manufacturers have opted into the new AB 1755 procedures; others remain under the old rules. This affects how your case proceeds and what deadlines apply.

Used Vehicles

Following the California Supreme Court’s October 2024 ruling in Rodriguez v. FCA US LLC, used vehicles are no longer covered by lemon law remedies against manufacturers—even if they have remaining warranty coverage. Only certified pre-owned vehicles with manufacturer CPO warranties may qualify. However, you may still have rights under other laws, particularly if the dealer failed to disclose material facts about the used vehicle or if it was sold as-is with undisclosed defects.

Special Considerations for Electric Vehicles

If you own an electric vehicle experiencing battery, charging, or software defects, the same lemon law protections apply. These issues can be particularly frustrating given the specialized nature of EV repairs.

Legal Remedies

When to Consider an Attorney

  • You’ve met the legal thresholds but the manufacturer refuses to act
  • The manufacturer is dragging out the process
  • You’re facing safety concerns
  • The financial loss is substantial

What You Can Recover

Under the Song-Beverly Act:

  • Buyback or replacement of your vehicle
  • Attorney fees paid by the manufacturer (you typically pay nothing out of pocket)
  • Incidental damages (towing, rentals, lost wages)
  • Civil penalties for willful violations (if you followed the written notice requirement)

Protecting Yourself

Financial Protection

  • Keep detailed records of all expenses related to the defect
  • Don’t continue driving if safety issues exist
  • Save all repair invoices and communications
  • Maintain copies of your purchase documents, warranty, and financing paperwork

Safety First

If your vehicle has safety defects, don’t drive it—no amount of inconvenience is worth risking your safety or others’. Report safety defects to NHTSA (National Highway Traffic Safety Administration).

The Bottom Line

When dealers can’t fix your car, California law provides powerful remedies. Key action items:

  1. Document everything from day one
  2. Know the thresholds: 4 attempts, 30 days, or 2 attempts for safety issues
  3. Act quickly: New 2025 deadlines mean time is critical
  4. Send written notice: Required before seeking civil penalties (effective July 1, 2025)
  5. Don’t let repair problems create additional harm: Get safe transportation immediately

Remember: The dealer’s inability to fix your car is the manufacturer’s obligation to resolve—and California law gives you the tools to enforce that obligation.

Need Help with Your Lemon Car?

If you’re dealing with a vehicle the dealer can’t fix, don’t navigate this process alone. Consumer Action Law Group is experienced in California lemon law cases and offers free consultations to evaluate your claim.

Call (818) 254-8413 to speak with an experienced lemon law attorney who can review your repair history, explain your rights under the new 2025 laws, and help you get the refund or replacement you deserve.

Filed Under: Blog, Lemon Law Blog

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  • Wrongful Repossession in California: Defenses, The 15-Day Letter, and Getting Your Car Back
  • What If the Dealer Can’t Fix My Car? Loaners, Refunds, and Next Steps
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