Leasing a car is a popular alternative to buying, especially in California, where many drivers prefer newer models with fewer long-term maintenance worries. But what happens if that leased car starts having serious problems? Is there any legal protection if your leased vehicle turns out to be a lemon?
The short answer is yes. California Lemon Law applies to leased vehicles just as it does to purchased ones. If you’re dealing with repeated repairs or safety issues, you have rights—and the manufacturer has obligations.
In this article, we’ll explain how the leased car lemon law in California works, what makes a leased vehicle qualify as a lemon, and what steps you need to take to file a claim.
Are Leased Cars Covered by California Lemon Law?
Yes, they are. The Song-Beverly Consumer Warranty Act, better known as California Lemon Law, doesn’t just protect buyers—it also applies to lessees, as long as the lease is for personal, family, or household use and the vehicle is still under the manufacturer’s original warranty.
This includes:
- New leased vehicles
- Some used leased vehicles that are still under the factory warranty
- Certified pre-owned leased cars, if the manufacturer warranty is active
So whether you’re driving a leased sedan, SUV, truck, or electric vehicle, you are entitled to the same protections as someone who bought the car outright.
When Is a Leased Car Considered a Lemon?
A leased vehicle qualifies as a lemon if it has a substantial defect that:
- Is covered by the manufacturer’s warranty, and
- Can’t be repaired after a reasonable number of attempts
That defect must impair the use, value, or safety of the car. Examples include:
- Engine stalling
- Transmission issues
- Faulty brakes or steering
- Repeated electrical problems
- Defective airbags or safety systems
What Counts as a “Reasonable Number” of Repairs?
California law doesn’t set a strict number, but generally:
- Two or more repair attempts for serious safety defects
- Four or more attempts for less dangerous but recurring problems
- Or, the vehicle is out of service for 30 days or more (total, not consecutive)
Once that threshold is met, the manufacturer is legally required to offer a replacement vehicle or a buyback—even for leased vehicles.
Key Differences Between Leased and Purchased Lemon Law Claims
While lemon law leased vehicles claims follow the same legal standards as purchased cars, there are a few differences in how claims are handled.
1. Buyback Calculation
In a purchase scenario, the manufacturer refunds the buyer for their down payment, monthly payments, taxes, and registration. In a lease, the structure is different.
If your leased vehicle is a lemon, the manufacturer must:
- Refund the lease payments you’ve already made
- Cover the initial lease inception fees
- Pay off the remaining lease obligation
- Reimburse you for incidental costs like rental cars or towing
Essentially, the manufacturer steps in and buys out your lease, removing the financial burden from your shoulders.
2. Your Relationship with the Leasing Company
When you lease, the car is technically owned by the leasing company (often a bank or the automaker’s financing arm). This doesn’t affect your ability to file a lemon law claim, but it may mean coordinating with the leasing company when processing paperwork for a buyback or replacement.
Most experienced lemon law attorneys—like the team at Seven Law—will handle this for you.
3. Replacement Option
If you prefer a replacement vehicle instead of a refund, you can opt for a new leased vehicle with similar value and features. The new lease will be issued under comparable terms, and you won’t be on the hook for the defective one anymore.
Your Rights as a Lessee Under California Law
If you’re leasing a car in California, you have the same rights to a properly functioning vehicle as anyone else. Here’s what that means in plain terms:
- You have the right to expect your leased car will operate safely and reliably
- You have the right to multiple repair attempts—but not endless ones
- You have the right to a buyback or replacement if the defect persists
- You have the right to legal representation—and if you win your case, the manufacturer pays your attorney fees
These leased vehicle rights in California are there to protect you from being stuck with an unsafe or unreliable car.
What to Do If You Think Your Leased Vehicle Is a Lemon
If your leased car is giving you repeated problems, follow these steps:
1. Document Everything
Keep records of all service visits, repair invoices, dates the car was in the shop, and any communications with the dealership or manufacturer. Details matter.
2. Check Your Warranty
Make sure the defect occurred while the manufacturer’s warranty was still active. This is a key requirement for a valid lemon law claim.
3. Give the Dealer a Fair Chance to Repair
Allow the dealership an appropriate number of repair attempts. Don’t skip this step—lemon law claims rely on proof that the manufacturer had a chance to fix the issue.
4. Consult a Lemon Law Attorney
Once you’ve met the legal threshold, contact an attorney who specializes in California lemon law. They’ll help file your claim, negotiate with the manufacturer, and secure the compensation or replacement vehicle you’re entitled to.
How Seven Law Can Help
Dealing with a defective leased vehicle is frustrating and time-consuming—but you don’t have to fight the system alone. At Seven Law, we focus exclusively on California lemon law and know exactly how to deal with uncooperative car makers and dealerships.
We handle everything—from gathering documentation and working with the leasing company to negotiating the buyback or replacement.
Best of all? You pay nothing out of pocket. If we take your case, the manufacturer is responsible for our fees if we win.
Think Your Leased Car Might Be a Lemon? Let’s Find Out.
Don’t keep driving a defective vehicle. Get the answers you need today with a free case review from Seven Law. We’ll tell you if your leased car qualifies and walk you through the next steps—at no cost to you.