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Leasing a Car That Won’t Stay Fixed? How the Lemon Law Can Apply to Leased Vehicles

Leasing a Car That Won't Stay Fixed? How the Lemon Law Can Apply to Leased Vehicles
Photo Courtesy: George Mkrtchyan, Esq., (Managing Attorney of Court House Lawyers)

By: Curious Fortune Media

The lease-end inspection is booked. The odometer is close to the mileage cap, the check-engine light is back on, and the repair orders from the last two years sit in the glove box. For many lessees, the plan at this point is simple: hand back the keys, pay whatever the lessor bills, and walk away from a car that never ran right.

George Mkrtchyan, Esq., Managing Attorney of Court House Lawyers in Glendale, California, sees that plan differently. His view is that in California lemon law for leased vehicles, the date that counts is when the defect first showed up under warranty, not how many months remain on the lease.

A lessee near turn-in may still have a claim, and the final weeks of a lease can be the point where waiting costs the most.

How Lemon Law For Leased Vehicles Works In California

California’s Song-Beverly Consumer Warranty Act generally treats a leased vehicle much like a purchased one. A lessee drives a car covered by the manufacturer’s warranty, and if the manufacturer cannot fix a covered defect after a reasonable number of attempts, the lessee may have the same path to relief as a buyer.

Lemon law for leased vehicles also uses the same presumption. Under § 1793.22, a vehicle can be presumed a lemon after 2 repair attempts for a defect likely to cause death or serious bodily injury, 4 attempts for the same defect, or 30 or more cumulative days out of service for repairs, all within 18 months or 18,000 miles of delivery. The presumption is a shortcut, not the only route. A car that misses those numbers can still qualify on its repair history.

The Lease Clock And The Lemon Law Clock Run Separately

A lease runs on a calendar set by the contract. The lemon law question runs on the repair record. Those two timelines can drift apart, and the lease end date often pressures owners into treating them as one.

“A date on the lease agreement does not erase a repair history,” Mkrtchyan says. “What usually counts is when the manufacturer was first notified of a defect, and the lease end date does not move that.”

That framing changes how the end of a lease looks. The Federal Trade Commission’s guide to financing or leasing a car notes that a lessee who ends a lease early may owe a substantial early termination charge, and one who exceeds the annual mileage limit will probably pay an additional fee at return. A lessee who turns in a defective car without raising a claim can end up absorbing those charges on a vehicle that may have qualified for relief.

Photo Courtesy: Court House Lawyers

What A Lease Buyback Can Cover

A lease buyback looks different from a purchase buyback because the lessee never owned the car. The leased-vehicle remedies that Court House Lawyers describes can include a return of monthly payments made to date, the down payment, taxes, and incidental costs such as towing and rental cars. Remaining payments can be forgiven, early termination fees waived, and excess mileage charges may be waived as well.

A mileage offset generally comes off the top. It is calculated from the miles on the car at the first repair visit for the defect, which is one reason an early, documented repair visit can shape the outcome long before anyone discusses a buyback.

One Day Before Turn-In: A Lemon Law Lease Example

One of the firm’s lease files shows how tight the timing can get. A client leasing a Jeep Wrangler came to the firm late in the lease. The lemon law claim was filed one day before the lease ended. The client recovered nearly all payments made, minus a low mileage offset.

The example does not mean every late-lease claim resolves the same way. Each claim turns on its own repair history and warranty terms. It does show that a lease nearing its end is not, by itself, a reason to assume the window has closed.

“Near the end of a lease, there is very little room for waiting on the next phone call,” Mkrtchyan admits. “On a short clock, how quickly the file moves can count for more than anything we could say in a letter.”

Reading A Lease Like A Lemon Law Record

For lessees, the practical work starts well before the inspection appointment. Mkrtchyan’s general advice is to take the car in as soon as a defect appears, report the specific symptom rather than a vague complaint, and keep every repair order. A recall notice alone does not make a car a lemon, but a pattern of repair visits for the same concern can build the record a claim relies on.

Mkrtchyan, a member of the Consumer Attorneys Association of Los Angeles (CAALA), handles California lemon law claims for both leased and purchased vehicles from the firm’s Glendale office. His working assumption is that a lease contract and a warranty claim answer different questions, and a lessee is better served when both are read side by side.

The glove box full of repair orders, in that light, is not clutter to clear out before turn-in. It may be the most valuable paperwork the lessee has.

Disclaimer: This article is for general informational purposes only and should not be considered legal advice. Laws, regulations, and individual circumstances may vary. Readers are encouraged to consult a qualified legal professional for advice specific to their situation. Past results do not guarantee future outcomes.

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