Does the lemon law cover a leased car in California?

If your leased car, truck or EV keeps going back to the dealer for the same problem, the lemon law for a leased car in California works much the same as it does for a purchase. You do not own the vehicle, but the law says you have the same rights against the manufacturer as if you had bought it. People are often told otherwise at the dealership, so it is worth knowing where those rights come from.

This guide explains who counts as a lessee, what a lessee gets back in a lemon law buyback, how the leasing company's payoff is handled, how the mileage offset works on a lease, and what the 2025 procedural changes mean if your lease is ending soon. It is general information as of October 2026, not legal advice about your vehicle.

Are leased vehicles covered by the lemon law?

Yes. The Song-Beverly Consumer Warranty Act says directly, in Civil Code § 1793.2(d)(2)(D), that a buyer of a new motor vehicle "shall also include a lessee of a new motor vehicle." A separate section, Civil Code § 1795.4, gives a lessee the same rights against the manufacturer as if the lessee had bought the goods, and gives the manufacturer the same duties.

The Act defines a "lease" in Civil Code § 1791(g) as a contract for the use of consumer goods by an individual for a term exceeding four months, used primarily for personal, family or household purposes. Most standard 24-, 36- and 39-month car leases fit that definition. A summary of California law used by BBB AUTO LINE's arbitration program adds that the vehicle must have been leased at retail in California, or leased by a full-time active-duty service member stationed or living in California.

New leases versus leased used cars

A new vehicle leased from a franchised dealer is the clearest case. A leased vehicle that had a prior owner is less clear after the California Supreme Court's 2024 decision in Rodriguez v. FCA US, which held that a used vehicle is not covered by the buyback rule unless the manufacturer's new car warranty was issued with the transaction. Our guide to used car lemon law in California explains that decision and the other warranty claims that remain.

When a leased vehicle qualifies

The test is the same as for a purchase. The manufacturer or its authorized dealers must have had a reasonable number of chances to fix a defect covered by the warranty, and failed. Under the Tanner Act presumption in Civil Code § 1793.22, as summarized by BBB AUTO LINE, within the first 18 months or 18,000 miles California presumes a vehicle is a lemon after two repair attempts for a defect likely to cause death or serious injury, four attempts for the same problem, or more than 30 total days out of service. Cases outside those numbers can still succeed. What decides most cases is the repair history, so keep every repair order, including visits where the dealer said it could not find the problem.

What a lessee gets back in a lemon law buyback

When a manufacturer repurchases a leased vehicle, the money is split between you and the leasing company. The statute describes restitution as the actual price "paid or payable," plus "collateral charges such as sales or use tax, license fees, registration fees, and other official fees," plus incidental damages such as reasonable repair, towing and rental car costs actually incurred (§ 1793.2(d)(2)(B)).

For a lease, the BBB AUTO LINE summary of California law breaks the lessee's refund down this way:

• The monthly payments you made, up to the repurchase.
• Your down payment, also called a capitalized cost reduction, including the value of any trade-in or deposit.
• Collateral charges you paid, such as sales tax, license and registration fees.
• Incidental damages, such as reasonable repair, towing and rental car costs, and charges like early termination fees and earned finance charges.
• Less a reasonable offset for your use of the vehicle, and an offset for physical damage beyond normal wear.

Every case is calculated on its own paperwork. Our lemon law buyback calculator gives a rough estimate and shows which numbers from your lease contract matter.

How the leasing company is paid off

You do not have to pay off the lease yourself. In a buyback, the manufacturer pays the leasing company directly. According to the same BBB AUTO LINE summary, the leasing company receives the payoff amount under the lease, less the security deposit it holds and any refund due for the unexpired part of a service contract or insurance included in the lease. Your security deposit comes back to you.

For manufacturers that opted in to the 2025 procedures, the California Department of Consumer Affairs says the vehicle payoff, attorney's fees and any civil penalties are paid within one business day after the vehicle is returned. Once the buyback closes, the lease ends and you walk away without a lease-end inspection bill.

The manufacturer's own finance arm often holds the lease. That does not change your rights. It sometimes makes the payoff faster, because the money moves inside the same corporate family.

The mileage offset on a lease

The manufacturer may subtract an amount for the miles you drove before the problem first appeared at the shop. Under § 1793.2(d)(2)(C), the offset is the vehicle's price multiplied by a fraction: the miles driven before you first brought the vehicle in for the defect, divided by 120,000. Miles driven after that first visit do not count.

Here is a simple example. If the price figure used is $45,000 and you drove 6,000 miles before the first repair visit, the offset would be $45,000 × 6,000 ÷ 120,000, or $2,250. On a lease, which "price" goes into the formula can be disputed. This is one reason to have a lawyer check the manufacturer's numbers before you sign a release.

What the 2025 lemon law changes mean for lessees

In 2024 and 2025 the Legislature passed AB 1755 and SB 26, which created a new set of procedures in Code of Civil Procedure §§ 871.20 and following. Those procedures apply only to manufacturers that elected to opt in. If the manufacturer of your leased vehicle did opt in, several rules affect lessees in particular:

• Written notice first. To seek civil penalties, you must send the manufacturer written notice at least 30 days before suing, with your name, VIN, a short repair history and a demand for repurchase or replacement (CCP § 871.24).
• Keep the vehicle. You must have the vehicle when you send the notice and keep it for at least 30 days after the manufacturer receives it, and for the full 60 days if the manufacturer makes an offer. Turning the car in at lease end during that window can cause problems.
• A shorter deadline. For opted-in manufacturers, a buyback suit must generally be filed within one year after the express warranty expires and no later than six years after original delivery, with some tolling (CCP § 871.21).

Our full guide to California's 2025 lemon law changes covers the rest, including early mediation and limits on discovery. For how these steps affect timing, see how long a lemon law case takes.

If your lease is about to end

Many lessees learn they may have a lemon law claim just as the lease is ending. Before you turn the vehicle in, buy it out or roll into a new lease with the same brand:

1. Gather every repair order, your lease contract and the warranty booklet.
2. Talk to a lawyer about whether to send a written notice first, and how the notice rules above affect your turn-in date.
3. Do not sign a lease-end or "goodwill" agreement that includes a release of claims without having it reviewed.
4. Keep photos and video of the problem, and note the mileage at each repair visit.

How LaCour handles leased-vehicle cases

We review leased-vehicle claims for free, in English or Spanish, and tell you plainly whether the repair history supports a buyback. When it does, California's lemon law requires the manufacturer to pay your attorney's fees and costs if you win. Learn more about our California lemon law practice.

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.