CarMax, one of the largest used car dealerships in the U.S., is currently facing a class action lawsuit alleging that it falsely advertised a 125+ point inspection for its vehicles, when in reality, those inspections were never performed. For consumers, this raises serious concerns about the reliability of the used vehicles they purchased and whether those cars might qualify as lemons under California law. In this article, we will break down the details of the lawsuit, explain why a used car sold without such an inspection could be a lemon, and what consumers can do if they find themselves in this situation.
CarMax Class Action Lawsuit: The Allegations
In 2023, a class action lawsuit was filed in the U.S. District Court for the Eastern District of California by plaintiff Douglas Pilcher, who claims CarMax failed to perform its advertised 125+ point inspections on multiple vehicles he purchased. Pilcher alleges that after purchasing a Lexus RX350 F-Sport, he encountered numerous issues, including malfunctioning door locks, deep scratches in the paint, and later, transmission problems. Pilcher’s experience didn’t stop there. He later purchased an Acura RDX and encountered further problems, including a flat spare tire, leaking radiator, and non-functional backup camera. Upon discovering that the vehicle was not even all-wheel drive, despite being advertised as such, Pilcher decided to take legal action.
According to the lawsuit, CarMax sold around 810,000 used vehicles nationwide in the fiscal year ending February 2023, with an average vehicle price of $28,000. Consumers were led to believe that these vehicles had undergone a rigorous 125+ point inspection to ensure reliability and safety. However, Pilcher claims that CarMax never performed these inspections and falsely certified them as completed to make sales.
For consumers who trusted CarMax’s certification, the lawsuit raises a significant concern: If these inspections were never done, could their car be considered a lemon under California warranty laws?
How California’s Lemon Law Applies to Used Cars
California has some of the strongest lemon laws in the country. These laws are designed to protect consumers from purchasing vehicles that have serious defects affecting their use, safety, or value. While lemon laws are often associated with new cars, California’s lemon law also covers certain used cars under specific circumstances.
Under California’s Song-Beverly Consumer Warranty Act, a used car can qualify as a lemon if:
- It is still under the manufacturer’s original warranty: This includes any remaining new car warranty that has not yet expired.
- It has a serious defect: The defect must substantially impair the use, safety, or value of the vehicle.
- Reasonable repair attempts were made: The dealer or manufacturer must be given a reasonable number of attempts to fix the defect. If they fail, the car may be considered a lemon.
If a car is found to be a lemon, the manufacturer is required to either replace the vehicle or refund the purchase price.
Why a Lack of Inspection Could Mean You Have a Lemon
When CarMax sells a vehicle advertised as having undergone a 125+ point inspection, consumers rely on that certification as a guarantee of the car’s quality. If those inspections were never performed, buyers might unknowingly purchase a defective vehicle.
If a used car sold by CarMax has significant defects that should have been identified during the inspection process, it could meet the criteria for a lemon under California law. Here’s how:
- Defects Affect Use, Safety, or Value: Cars with issues like malfunctioning locks, faulty transmissions, or leaking radiators can severely impair the safety and reliability of the vehicle. If these problems arise soon after purchase, they may substantially affect the car’s use or value.
- Inspection Failures: The fact that these inspections were not performed means defects may not have been discovered before the sale. If the defect was present at the time of sale and not disclosed, it strengthens the argument for the vehicle being a lemon.
- Repair Attempts: As in the case of Pilcher, multiple failed repair attempts after the sale are common indicators of a lemon. California’s lemon law allows consumers to seek recourse if the dealer or manufacturer is unable to fix the problem after a reasonable number of attempts.
What To Do If You Have a CarMax Lemon
If you believe your CarMax vehicle qualifies as a lemon, there are specific steps you can take to protect your rights under California’s lemon law:
- Document Everything: Keep detailed records of all repair attempts, service visits, and communication with CarMax. This documentation is crucial if you need to prove that the dealer was given a reasonable number of attempts to fix the defect.
- Check Your Warranty: If your vehicle is still under the manufacturer’s original warranty, you may be eligible for a refund or replacement under California’s lemon law. If the vehicle was sold with a CarMax extended warranty or service contract, review the terms to see what coverage may apply.
- Contact an Experienced Lemon Law Attorney: Lemon law cases can be complex, especially when it comes to used vehicles. An experienced lemon law attorney can help you navigate the legal process and determine whether you have a strong case.
- Know Your Rights: Even if CarMax sold you a vehicle “as-is,” you may still have legal recourse if the dealership made false representations about the car’s condition. Advertising that a vehicle underwent a rigorous inspection when it didn’t could be considered a violation of consumer protection laws.
Get Help for Uninspected CarMax Lemons
The CarMax class action lawsuit highlights a serious issue that affects thousands of consumers who relied on the company’s promise of a 125+ point inspection. For those who purchased a vehicle from CarMax and are now experiencing significant defects, there’s a possibility that the vehicle may qualify as a lemon under California law.If you’re dealing with a defective car, don’t wait to take action. The lemon law exists to protect consumers like you from the burden of owning an unreliable vehicle. At Johnson & Buxton – The Lemon Law Guys, we are here to help you navigate your legal options and get the compensation or replacement vehicle you deserve. If you have questions about your vehicle or believe it may qualify as a lemon, contact us today for a free consultation.