Purchasing a vehicle is a significant financial investment, and many Californians rely on financing to make their dream cars a reality. But what happens if the vehicle you’re still paying for is a lemon? The good news is that California’s Lemon Law provides robust protections for consumers, even those who owe money on their vehicle loans.
At Shainfeld Law, P.C. our California lemon law attorney is here to help you understand how the law applies to your situation and what steps you can take to protect your financial interests.
Understanding California Lemon Law
The California Lemon Law, officially known as the Song-Beverly Consumer Warranty Act, is a beacon of hope for consumers who find themselves with a defective vehicle. If your car has significant issues that cannot be repaired after a reasonable number of attempts, this law ensures you are not left stranded. You may be eligible for a refund or replacement, providing much-needed relief. This law applies to new and certified pre-owned vehicles with a manufacturer’s warranty.
What Happens If You Still Owe Money on the Vehicle?
One of the most common questions we hear is how the Lemon Law applies when a consumer is still making payments on a vehicle loan.
Here’s what you need to know:
- Refunds and Loan Balances
If you qualify for a refund under California Lemon Law, the manufacturer is required to:
- Reimburse you for your down payment.
- Refund any monthly payments you’ve already made.
- Cover the remaining loan balance owed to the financing company.
This ensures you’re not left paying for a defective vehicle you no longer own. However, manufacturers are entitled to deduct a “mileage offset,” which accounts for vehicle use before the defect was discovered. This means they can reduce your refund by a certain amount for the miles you’ve driven before the first repair attempt. The deduction is calculated based on the number of miles driven before the first repair attempt.
- Replacement Vehicles and Financing
If you choose a replacement vehicle instead of a refund, the manufacturer will work with your lender to transfer the loan to the new car. This process ensures that your financing terms remain consistent, and you won’t face additional financial burdens.
- Handling Negative Equity
Negative equity occurs when you owe more on your loan than the vehicle’s current value. In some cases, this can complicate Lemon Law claims. However, our skilled California Lemon Law attorney can negotiate with the manufacturer to address the negative equity as part of your refund or replacement, ensuring you’re not stuck covering the difference.
How Shainfeld Law, P.C. Law Can Help
At Shainfeld Law, P.C., we are not just another law firm. We specialize in California Lemon Law cases and have a proven track record of helping countless clients secure refunds or replacements for defective vehicles.
Our experience handling financing situations ensures that you can move forward without financial strain, with confidence in our ability to deliver the best outcome through:
- Expert Negotiation: We work directly with manufacturers and lenders to resolve your case efficiently.
- Comprehensive Support: We handle every aspect of your Lemon Law case, from gathering evidence to filing claims.
- No Upfront Costs: We achieve a favorable outcome in 99% of cases, with the manufacturer covering all your legal fees.
California Lemon Law is not just a set of rules; it’s a shield protecting your consumer rights. It offers strong protections, even to those still financing their vehicles. Don’t hesitate to act if you suspect your car is a lemon. Remember, you have the right to a refund or replacement. Contact our experienced Los Angeles lemon law attorney at Shainfeld Law, P.C., today by calling 888-609-2593 or request a free consultation online. Let us help you navigate the process while protecting your financial interests.