What AB 1755 and SB 26 changed in California lemon law

If you have been reading about a new California lemon law for 2025, you have probably seen two bill numbers: AB 1755 and SB 26. Together, these AB 1755 lemon law changes added a new set of procedures for claims against car manufacturers. They did not take away your right to a buyback or replacement when a new vehicle cannot be fixed. They did change the steps, the timing and, in some cases, the money.

The most important point is easy to miss. The new procedures apply only to manufacturers that chose to opt in. This guide explains what changed, for whom, since when, and what to do differently, as of October 2026. It is general information, not legal advice.

The short version

• Two laws. AB 1755 was signed on September 29, 2024, and most of it took effect January 1, 2025. SB 26 was signed on April 2, 2025, as an urgency law that took effect immediately, and it turned AB 1755's procedures into an opt-in system for manufacturers.
• Opt-in only. The new procedures, found in Code of Civil Procedure §§ 871.20 to 871.30, apply only to manufacturers that elected them. Claims against other manufacturers follow the older rules.
• Notice before a civil penalty. For opted-in manufacturers, you must send a written demand at least 30 days before suing if you want to seek a civil penalty. The manufacturer gets a chance to buy back or replace the vehicle first.
• A new deadline. Suit generally must be filed within one year after the warranty expires, and never more than six years after the vehicle was first delivered, with some exceptions that pause the clock.
• Your core rights stay. The buyback-or-replace remedy, the mileage offset formula, the 18-month or 18,000-mile presumption, the civil penalty of up to two times damages, and attorney's fees all remain in the Song-Beverly Act.

Why did California change its lemon law?

AB 1755 was written in the last weeks of the 2024 session. According to the Assembly Judiciary Committee's August 2024 analysis, it aimed to resolve lemon law cases earlier and with less litigation, through pre-suit notice, quick document exchange and early mediation. The consumer group Consumers for Auto Reliability and Safety opposed it and urged a veto. The Department of Consumer Affairs notes that the Governor's signing message called for further changes in 2025, and SB 26 followed, making the new system something each manufacturer could choose.

Who the AB 1755 changes apply to: opt-in manufacturers

Under § 871.20, the new chapter covers lawsuits seeking restitution or replacement against a manufacturer that has elected to be governed by it. If no election covers the year your vehicle was sold, the new procedures do not apply to your case.

The election rules are in § 871.29 and § 871.30:

• Vehicles sold in 2025 and earlier. A manufacturer had 30 days after SB 26 took effect to elect the new procedures for all vehicles it sold in 2025 and earlier.
• Later years. A manufacturer elects by written notice by October 31 of the year before. Each election covers five consecutive calendar years of sales and cannot be revoked during that period.
• Public list. The Department of Consumer Affairs' Arbitration Certification Program must post the list of opted-in manufacturers by December 15 each year.
• Disclosure at sale. At sale, the manufacturer must tell the buyer which procedures govern the vehicle.

Which companies opted in? The official list is on the Department of Consumer Affairs' website, and you should check it there, because it can change each year. Reports citing that list, from a California lemon law firm in May 2025 and from Consumers for Auto Reliability and Safety in February 2026, both named General Motors, Ford, Stellantis (Chrysler, Dodge, Jeep and Ram), Hyundai, Kia, Mercedes-Benz, Nissan and Subaru. The consumer group's list also named Infiniti, Isuzu and Mitsubishi. If your manufacturer is not on the current list, the older procedures generally apply to your claim.

The 30-day written notice before a civil penalty

This is the change that most affects drivers. Under § 871.24, if you want to ask for a civil penalty against an opted-in manufacturer, you must first send it a written notice at least 30 days before you sue. That section became operative on July 1, 2025; SB 26 moved the date back from April 1, 2025, as BBB National Programs reported.

The notice must:

• give your name, the vehicle identification number (VIN), and a brief repair history;
• demand that the manufacturer buy back or replace the vehicle;
• be sent by email to the address the manufacturer posts on its website for lemon law notices, or by certified or registered mail, return receipt requested, to the address in the owner's manual or warranty booklet.

The contact information must be posted in English and Spanish. Minor mistakes do not disqualify you, but you must have the vehicle when you send it.

Then the clock runs for the manufacturer. If, within 30 days of receiving the notice, it offers a buyback or replacement plus reasonable attorney's fees and costs, and it completes the transaction within 60 days, you can no longer seek a civil penalty. If it makes no offer within 30 days, you may sue and ask for a civil penalty.

The notice also limits what you can do with the car:

• You must keep the vehicle for at least 30 days after the manufacturer receives the notice, or 60 days if it makes an offer.
• If no offer comes within 30 days, you may sell the vehicle, but SB 26 added a condition: to keep a civil penalty claim, you must first tell the buyer in writing why you asked for a buyback and about any pending lawsuit.
• You can sue without sending the notice, but then you must still have the vehicle when you file, and you cannot add a civil penalty later.

Disputes over attorney's fees before a lawsuit go to neutral, binding arbitration.

The new filing deadline

Under § 871.21, a lawsuit against an opted-in manufacturer must be filed within one year after the express warranty expires, and in no case more than six years after the vehicle was originally delivered. The clock is paused while the vehicle is out of service for repairs of the defect, while a qualified third-party dispute program handles the claim, and for up to 60 days after you send the pre-suit notice.

That can be short. The law firm Bowman and Brooke, gave the example of a vehicle bought January 1, 2020, with a five-year warranty: the lawsuit would be due by January 1, 2026. For manufacturers that did not opt in, the older limitations rules still apply; those have generally given drivers four years, often counted from when the problem was or should have been discovered. Do not count on four years until you know which rules apply.

Early disclosures, short depositions and mediation

For lawsuits filed on or after January 1, 2025, against an opted-in manufacturer, § 871.26 sets a fast track. It does not apply to people who represent themselves.

• Within 60 days after the manufacturer answers, both sides exchange documents without waiting to be asked. You provide your contract, payment history and payoff, repair orders and receipts. The manufacturer provides its warranty and repair records, related service bulletins and recalls, its buyback policies, and its evaluation of any pre-suit demand.
• Within 120 days, each side may take a deposition of up to two hours of the other.
• Within 90 days, the parties schedule mediation, which must happen within 150 days of the answer. Other discovery waits until mediation ends.

Lawyers who do not comply face mandatory sanctions: $1,500 for a plaintiff's lawyer and $2,500 for a defense lawyer, unless there is good cause.

Changes to the buyback money

The basic buyback formula in Civil Code § 1793.2(d)(2) did not change, including the mileage offset of 120,000 in the denominator. For opted-in manufacturers, § 871.27 adds several rules:

• The manufacturer may subtract optional equipment, service contracts and GAP coverage bought from third parties. Items supplied by the selling dealer remain recoverable.
• The manufacturer may subtract negative equity from a trade-in that was rolled into your contract.
• A noncash manufacturer rebate toward the down payment is not counted in the price paid.
• For leases, amounts paid to extend the lease or buy out the residual can be recovered.
• The manufacturer does not pay future interest you will not owe once the loan is paid off.
• No release other than a standardized form may be required. Once you sign it, the manufacturer must complete the buyback within 30 days or pay $50 a day, and must pay your lender, your fees and any civil penalty within one business day after you return the vehicle.

The cap on the civil penalty itself, up to two times actual damages for a willful violation under Civil Code § 1794(c), was not changed. To see how the offset works with your own numbers, try our lemon law buyback calculator.

Is there a sunset date?

No. Neither law has an end date. The text of SB 26 states the Legislature's intent to evaluate AB 1755 and SB 26 starting January 1, 2029. Until then, each election lasts its five-year period.

Manufacturers also have other paths. The Department of Consumer Affairs describes three: opt in to the new procedures, stay under the existing lemon law statutes, or use a state-certified arbitration program, where decisions are typically issued within 40 days after a claim is accepted.

What should you do differently now?

1. Find out which rules apply. Check the Department of Consumer Affairs list for your manufacturer and the year your vehicle was sold. Your sale paperwork should also say.
2. Keep the vehicle. Do not sell or trade it in before you talk to a lawyer. Selling too early can cost you the civil penalty.
3. Write down the warranty end date. If your manufacturer opted in, the one-year-after-warranty deadline may be close, especially on an older vehicle.
4. Send the notice the right way, or let a lawyer send it. Use the exact email address or mailing address the manufacturer publishes, and keep proof of delivery. A letter sent to a dealer or a general customer service line may not count.
5. Gather your documents now. The early disclosure rules mean your contract, payment history, payoff quote and every repair order will be needed within weeks of filing.
6. Do not sign a release you do not understand. Opted-in manufacturers must use a standardized release.

Used and leased vehicles can be covered too, with their own rules; see our guides on used cars under the lemon law and leased cars, and how long a lemon law case takes under the new timelines. Our California lemon law lawyers review cases statewide, in English and Spanish, and the manufacturer pays our fees when you win.

Frequently asked questions

This guide is general information about California and federal law and about public records as of its date. It is not legal advice, and reading it or contacting us does not create an attorney–client relationship. Allegations in lawsuits are claims, not findings. Prior results do not guarantee a similar outcome. Attorney advertising.