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Updates to California's Lemon Law might impact your next car purchase

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When buying a car, you must do your due diligence.

"I had a lady come in with an exhaust system. It was rusted out," said mechanic Eric Stahr.

Stahr says the customer had no idea she’d bought a car with an issue and it cost her.

"The exhaust system needed to be replaced. [It] cost probably $1,000 to $2,000," Stahr continued.

If purchased from a car dealership, that customer would be covered under California’s current Lemon Law — legal protection for buyers if their vehicle is sold with a significant defect making it unsafe or unusable.

But come January 2025, that changes with the passing of AB 1755, says lawyer Jessica Anvar with The Lemon Law Experts.

"They're putting a lot of pressure on consumers to do a lot of research into the law to understand it and comply with the new mandates," Anvar explained.

One big change is an updated statute of limitations for filing claims, from 10 years to six.

"They've paid for a warranty that goes up to ten years, 100,000 miles. But now, under the new law, they can't bring a Lemon Law claim past six years at the latest," Anvar said.

Another change affects how manufacturers issue refunds for faulty cars.

"You would have to pay the negative equity upfront out of your own pocket before you could get a refund and the average amount of negative equity these days is about $6,400," said Rosemary Shahan, founder of Consumers for Auto Reliability and Safety (C.A.R.S.).

In addition, Shahan says before a buyer can invoke a lemon case, they must contact the manufacturer in writing detailing the issues and work done. And to further complicate things, not all manufacturers are participating in the new law.

"Know your rights, do your research, look at the Consumer Affairs website, see if the manufacturer of your vehicle has elected into AB 1755," Anvar said.

And it doesn’t hurt to get a second opinion.

"Have it checked out by a quality mechanic before you buy it. For me, [that's] the best advice I could give," Stahr concluded.