In the sunny state of California, owning a reliable car is part of the famous “California dream”.
But what happens when that dream car turns sour and the vehicle is defective?
We expect new and used vehicles to work seamlessly after driving them off of the sales lot. But unfortunately, that is not always the case. Defects stemming from mistakes in the factory happen from time to time – and some end up getting passed the automaker’s quality assurance protocols and onto the sales floor.
There are about 150,000 lemon vehicles sold in California every year. No one wins when a lemon gets sold. Manufacturers are required to make it right (thanks to California lemon law) and consumers are extremely inconvenienced by the legal process.
It’s in the best interests of everyone for dealerships to prevent lemon vehicles from being sold altogether. Here’s how they can set themselves up to do this.
Dealers’ Duty: More Than Just Sales
Dealers play a crucial role in the car-buying journey. Their first responsibility is to ensure they sell vehicles that are safe and dependable. It’s a task that goes beyond the showroom.
It involves a commitment to offering vehicles that are not just attractive and functional, but are fundamentally safe and reliable.
This duty starts from the moment a car is acquired for sale. The process involves verifying the vehicle’s history, conducting thorough inspections, and addressing any issues before the car is even presented to a customer. It’s about creating a foundation of trust and ensuring that every vehicle that rolls off the lot is up to the standard, safeguarding the dealer’s reputation and the consumer’s safety.
Buying and selling a defective vehicle can have serious ramifications for a dealership – from legal expenses to reputation damage.
Understanding the California Lemon Law: A Safety Net for Consumers
The California lemon law – known as the Song-Beverly Consumer Warranty Act – serves as a safety net, protecting consumers from defective vehicles – and holding dealerships accountable to the warranty.
As a dealership, you need to understand the basics of California lemon law.
When you sell a used vehicle, you are required to specify on the buyer’s guide whether the vehicle has a warranty or is being sold “as is”. The standard dealer warranty for used cars is 30 days after purchase or before 1,000 miles accrue on the odometer. If a defect comes up within these terms – and you are unable to repair it with a reasonable number of attempts – the consumer may file a lemon law claim.
If the car is being sold “as is”, it means the consumer takes full responsibility for all defects once they drive it off of the lot.
If you’re not sure about your lemon law obligations as a dealership, get in touch with a California lemon law lawyer to learn more.
Honest Disclosure: The Best Policy
As a dealership, you can certainly sell vehicles that were ruled as lemons. However, you will need to clearly indicate that the vehicle is a lemon law buyback. Disclosing this means placing a decal on the window of the driver’s side door and making sure the vehicle’s title and registration indicate the lemon status.
Dealers have a legal obligation to disclose any known issues with the vehicles they sell. Hidden problems can lead to lemon law cases.
You may also disclose any known defects to potential buyers. By being upfront about a vehicle’s condition, dealers can avoid misunderstandings and legal complications, ensuring a smoother transaction and fostering customer loyalty.
Regular Maintenance: A Dealer’s Duty
Regular maintenance and service of vehicles are not just about keeping them in good shape; it’s a critical responsibility for dealers.
This means ensuring that all vehicles, especially used ones, are regularly checked and serviced. Regular maintenance helps identify potential issues before they become significant problems. This practice is not just beneficial for the vehicle’s health; it also minimizes the risk of future lemon law claims.
When dealers take proactive steps in maintaining their inventory, they safeguard their reputation and provide their customers with reliable, road-worthy vehicles.
Consumer Education: Empowering Buyers
Although this is optional, dealers are recommended to inform consumers about their rights under the California lemon law and warranty law.
This education can include simple, understandable information on what constitutes a lemon vehicle, the implications of warranty law, and the steps a consumer can take if they encounter issues with their vehicle.
By educating buyers, dealers can create trust and help them make informed decisions, which is essential in building a positive reputation.
Working Together for Reliability
Preventing lemon vehicles is a shared responsibility between manufacturers and dealerships.
As dealers commit to quality and transparency, and consumers stay informed, the road becomes a safer place for everyone. Whether you’re buying or selling, understanding and upholding the principles of California lemon law and warranty law is crucial for a smooth and enjoyable driving experience.
