TL;DR
- Assembly Bill 1755 introduces significant changes to California’s lemon law starting January 2025
- New pre-litigation notice requirements may delay but could streamline resolution
- Shortened discovery process aims to reduce court backlogs
- Manufacturers face stricter 60-day settlement compliance deadlines
- Used car warranty protections remain uncertain after recent Supreme Court ruling
- Consumer advocacy groups warn of potentially weaker protections
Table of Contents
- What Is California’s Lemon Law?
- Why Did California Change the Lemon Law in 2025?
- Key Changes in Assembly Bill 1755
- New Pre-Litigation Notice Requirements
- How the Discovery Process Changes
- Stricter Manufacturer Compliance Deadlines
- Impact on Used Car Buyers
- What This Means for Your Case Timeline
- Consumer Advocacy Concerns
- How to Protect Your Rights Under the New Law
Introduction
If you’re planning to buy a car in California in 2025, the legal landscape just shifted dramatically. In September 2024, Governor Gavin Newsom signed Assembly Bill 1755, ushering in the most significant changes to California’s lemon law in decades. These reforms, effective January 2025, aim to address the flood of over 22,000 lemon law cases clogging California’s court system annually. While the changes promise faster resolutions for some, they also introduce new hurdles for consumers seeking justice for defective vehicles. In this post, we’ll break down exactly how AB 1755 affects your rights as a car buyer, from stricter manufacturer deadlines to new pre-litigation requirements, and what you need to do to protect yourself.
What Is California’s Lemon Law?
California’s lemon law, formally the Song-Beverly Consumer Warranty Act, protects consumers who purchase or lease defective vehicles. A “lemon” is defined as a vehicle with substantial defects that impair its use, value, or safety, which the manufacturer or dealer cannot repair after a reasonable number of attempts—typically two or more for serious issues. If your vehicle qualifies, you’re entitled to a refund or replacement, including costs like taxes and registration fees.
California’s lemon law is among the strongest in the U.S., with 22,000 cases filed in 2023 alone, compared to Texas’s 9,000 and Florida’s 12,000. Consumers can also seek civil penalties up to twice the vehicle’s value if manufacturers act willfully. However, the law’s complexity often requires legal expertise to navigate successfully, especially with the 2025 changes.
Why Did California Change the Lemon Law in 2025?
The catalyst for AB 1755 was a court system overwhelmed by lemon law cases. In 2023, Los Angeles County reported that 10% of its civil caseload involved lemon law disputes, with some courts facing delays of up to 18 months. Legislative analysis pointed to “aggressive law firms” driving high case volumes, often exploiting vague discovery rules to prolong disputes.
Judges, manufacturers, and even some consumer advocates pushed for reform to reduce backlogs while maintaining protections. Manufacturers argued that frivolous lawsuits inflated costs, while judges sought streamlined processes to clear dockets. The result? AB 1755, a compromise balancing consumer rights with judicial efficiency, though not without controversy.
Key Changes in Assembly Bill 1755
AB 1755, signed in September 2024, targets three main areas: pre-litigation notices, discovery processes, and manufacturer compliance. Most provisions take effect January 1, 2025, with discovery changes phased in by April 2025 to allow courts to adjust. Governor Newsom signed the bill reluctantly, citing concerns over reduced consumer protections but acknowledging the need for reform.
The law aims to reduce court congestion while ensuring manufacturers address valid claims promptly. However, consumer advocates warn that new requirements could complicate access to justice, particularly for used car buyers. Below, we dive into the specifics of each change and what they mean for you.
New Pre-Litigation Notice Requirements
Starting January 2025, consumers must send a written pre-litigation notice to manufacturers before pursuing civil penalties in court. This notice must detail the defect, repair attempts, and desired remedy (refund or replacement). Manufacturers have 30 days to respond with a settlement offer or repair attempt.
This change could benefit consumers by encouraging faster out-of-court resolutions—data from 2023 shows 40% of lemon law cases settled pre-trial. However, the mandatory 30-day window may delay justice for those facing uncooperative manufacturers, as failure to comply voids penalty claims. Attorneys recommend precise documentation to meet notice requirements and avoid procedural dismissals.
How the Discovery Process Changes
AB 1755 streamlines the discovery process to reduce court backlogs. Starting April 2025, document sharing is limited to essential records, such as repair orders and warranty agreements. Evidence requests are capped to prevent “fishing expeditions” that prolong cases.
This could shorten case preparation from 6-12 months to 3-6 months, but attorneys warn it may limit access to critical evidence, like internal manufacturer defect reports. “The shortened process helps clear dockets but risks weakening strong cases,” says lemon law attorney Michael Nguyen. Consumers must now rely heavily on thorough repair documentation to build their case.
Stricter Manufacturer Compliance Deadlines
Manufacturers now face a strict 60-day deadline to complete settlements or repairs once an agreement is reached, effective January 2025. Non-compliance triggers financial penalties, including interest on delayed refunds. This protects consumers from manufacturers dragging out settlements—previously, some cases lingered for months post-agreement.
For example, in 2022, 15% of settlements took over 90 days to finalize. The new rule ensures faster resolution, giving consumers quicker access to funds or replacement vehicles. However, manufacturers may push for lower settlements to meet deadlines, so legal counsel is critical.
Impact on Used Car Buyers
A recent California Supreme Court ruling muddied the waters for used car buyers, questioning whether “new motor vehicle” warranties apply to pre-owned vehicles with remaining factory coverage. AB 1755 doesn’t fully clarify this, leaving used car buyers in limbo. Legislative fixes are pending, but no timeline exists.
For now, used car buyers should verify warranty status at purchase and document all repair attempts. Without clear protections, you may face an uphill battle proving lemon status. “Check if the warranty explicitly covers used vehicles,” advises attorney Sarah Kim, “and keep every receipt.”
What This Means for Your Case Timeline
Under the old system, lemon law cases took 12-18 months on average. With AB 1755, expect 6-12 months for most cases, thanks to streamlined discovery and mandatory notices. However, delays may occur if manufacturers exploit the 30-day response window or if evidence is hard to obtain.
Involve an attorney early—ideally after the second repair attempt—to ensure compliance with new notice rules. Waiting too long could jeopardize your ability to seek penalties. A realistic timeline: 1-2 months for notice and response, 3-6 months for discovery, and 2-4 months for settlement or trial.
Consumer Advocacy Concerns
Consumer advocate Rosemary Shahan, president of Consumers for Auto Reliability and Safety, warns that AB 1755 may weaken protections. “The notice requirement adds a hurdle that benefits manufacturers,” she argues, noting that unsophisticated consumers might miss critical steps. Industry groups counter that the changes deter frivolous lawsuits and encourage fair settlements.
Both sides have merit: faster resolutions help consumers, but new rules demand more diligence. The law’s success depends on how courts enforce compliance and whether consumers adapt to stricter requirements.
How to Protect Your Rights Under the New Law
To navigate AB 1755, document everything: repair orders, communications with dealers, and defect descriptions. Send the pre-litigation notice via certified mail to ensure proof of delivery. Watch for red flags, like dealers dismissing defects as “normal” or refusing repairs.
Consult a lemon law attorney if your vehicle requires multiple repairs for the same issue or if the manufacturer delays response. “Early legal advice can save your case,” says attorney David Lee. Familiarize yourself with the 30-day notice and 60-day settlement rules to avoid pitfalls.
Conclusion
California’s 2025 lemon law changes under AB 1755 aim to balance consumer rights with judicial efficiency. New notice requirements, streamlined discovery, and stricter manufacturer deadlines could mean faster resolutions—but only if you’re prepared. Used car buyers face added uncertainty, so vigilance is key. For a free case evaluation and expert guidance, contact Johnson & Buxton today to ensure your rights are protected under the new law.