In this article, you can discover…
- How repair costs are factored into your California Lemon Law case.
- What happens to your vehicle loan or lease during buyback.
- Whether punitive damages factor into California Lemon Law claims.
Can I Include Repair Costs In My Lemon Law Compensation In California?
Repair costs can be included in lemon law compensation in California. If you have a valid lemon law claim and have paid out-of-pocket for repairs to address issues that were covered under the vehicle’s warranty or related to the lemon law claim, you may be entitled to reimbursement.
These expenses are considered part of the compensation owed by the manufacturer, as the consumer should not bear financial responsibility for defects that fall under warranty coverage or lemon law protections.
How Are Incidental Costs Like Towing And Rental Cars Factored Into My Settlement?
Incidental costs such as towing and rental cars are recoverable under California’s lemon law since any expenses directly related to repairing the defective vehicle can be included in the settlement.
For example, if your vehicle breaks down and needs to be towed to a repair facility or if you need a rental car while your vehicle is being serviced, these costs are considered part of your claim. Even less common expenses, such as hotel stays incurred during out-of-town repairs, may be eligible for reimbursement if they are directly tied to the repair process.
Keep all of your receipts and documentation for these incidental expenses because they will go far to strengthen your claim and ensure you are fairly compensated.
What Happens To My Vehicle Loan Or Lease During A Lemon Law Buyback?
During the lemon law process, your vehicle loan or lease remains active, and you are obligated to continue making payments until the case is resolved. This is because the vehicle and its loan or lease remain your responsibility until the manufacturer officially agrees to or is ordered to repurchase the vehicle.
Once the manufacturer takes possession of the vehicle and the buyback is finalized, the loan or lease is terminated or paid off by the manufacturer. At that point, the account will reflect as paid in full. However, until the process is complete and ownership transfers, you must maintain regular payments to avoid penalties or credit issues.
Alex Simanovsky of Alex Simanovsky & Associates, LLC has decades of experience helping consumers navigate California’s lemon law claims, especially when it comes to complex cases involving repair costs and settlements. Alex and his team have successfully recovered compensation for clients facing out-of-pocket expenses for repairs, towing, and other incidental costs tied to defective vehicles. Their dedication to protecting consumer rights ensures clients receive fair treatment and maximum recovery.
If you’re struggling with a vehicle defect, contact Alex Simanovsky & Associates today to secure the justice you deserve.
What Should I Do If I’ve Stopped Making Payments On My Vehicle During A Lemon Law Claim?
We strongly advise against stopping payments on your vehicle during a lemon law claim unless you have explicit permission from your finance company. The finance company that provided the loan or lease is not part of the lemon law process and will typically expect you to adhere to your payment schedule regardless of the vehicle’s condition.
Not making payments can result in repossession, which has serious consequences, including:
- Losing your vehicle since the company that financed it can repossess it, leaving you without transportation.
- Suffer damage to your credit because repossession is reported on your credit history.
- Be ineligible for lemon law protection if your vehicle is repossessed. Under these circumstances, you no longer own it and cannot proceed with a lemon law claim as a result.
If you’ve already stopped making payments, immediately contact your finance company to negotiate arrangements to bring the loan current and avoid repossession. Although your lawyer can handle the lemon law claim, they cannot intervene with the bank to pause or waive payments.
Are Punitive Damages Included In Lemon Law Settlements For Vehicles In California?
Punitive damages are generally not part of settlements or judgments in California lemon law claims. The state’s Song-Beverly Consumer Warranty Act, which governs lemon law cases, focuses on compensating consumers for their losses rather than punishing manufacturers.
However, the law does allow for enhanced damages in certain situations, such as when the manufacturer willfully fails to comply with warranty obligations. Enhanced damages can include:
- Up to two times the actual damages the consumer suffered.
- Attorney’s fees and costs, typically covered if the consumer prevails.
While punitive damages are extremely rare, they might be pursued in separate claims involving fraudulent or egregious behavior by the manufacturer. Consult an experienced attorney to explore all potential remedies for your case.
Does California’s Lemon Law Cover Emotional Distress Or Inconvenience?
California’s lemon law does not provide compensation for emotional distress or inconvenience. The Song-Beverly Consumer Warranty Act is designed to address tangible losses related to a defective vehicle, such as repair costs, incidental expenses like towing or rental cars, and the vehicle’s diminished value.
The law focuses solely on financial and contractual remedies rather than emotional or subjective harms. If you have suffered emotional distress or inconvenience due to a defective vehicle, these claims would need to be addressed through a different legal avenue, not under the lemon law.
What Deductions Might Manufacturers Take From A Settlement Under California’s Lemon Law?
Under California’s lemon law, the only deduction manufacturers are legally permitted to take is for mileage on the vehicle. The calculation is based on the miles you have driven up to the first repair attempt for the defect that qualifies under the Lemon law.
The formula is as follows:
- Take the mileage at the first repair attempt.
- Divide that number by 120,000 (the presumed lifespan of a vehicle).
- Multiply the result by the vehicle’s purchase price as listed in the sales contract.
This calculated amount is deducted from the refund, and no other deductions are allowed by law.
How Do You Assist Clients Who Are Worried About Negotiating With Manufacturers And Fear They Won’t Get A Fair Deal?
We provide comprehensive support to clients who feel apprehensive about negotiating with manufacturers, ensuring they receive a fair outcome without incurring out-of-pocket expenses. Here’s how:
No Cost
We never charge you any direct fees. California law mandates that manufacturers cover the consumer’s attorney’s fees in addition to any settlement or judgment obtained. As such, we negotiate our fees directly with the manufacturer, meaning the consumer keeps 100% of their settlement.
Leveling The Playing Field
Unrepresented consumers often face lowball offers because manufacturers know there’s no immediate threat of legal action. By stepping in, we bring immense leverage to the table, ensuring manufacturers take claims seriously and negotiate fairly.
Streamlining The Process
Many clients come to us after experiencing delays, miscommunications, and frustration while trying to resolve their claims directly with manufacturers. We bypass unnecessary roadblocks by communicating directly with the manufacturer’s legal department, cutting through red tape and accelerating the resolution process.
Securing Fair Settlements
Our experience allows us to advocate effectively, often achieving amicable settlements without the need for prolonged litigation.
All in all, we eliminate the stress and ensure you receive the compensation and resolution you deserve.
Still Have Questions? Ready To Get Started?
For more information on How To Calculate The Value Of Your Lemon Law Settlement In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (844) 885-3666 today.
