What's New for 2026 - Key Changes & Important Updates
New Statutes Affecting Lemon Law Claims (AB 1755 & SB 26)
Recent legislative changes have introduced new procedures impacting how Lemon Law claims are handled in California.
Assembly Bill 1755 and Senate Bill 26, which took effect in 2025, require new pre-suit written notice obligations and offer manufacturers alternate dispute procedures under the Department of Consumer Affairs’ Arbitration Certification Program.
Under these laws:
- Consumers must send a written demand to the manufacturer requesting restitution or replacement before seeking civil penalties.
- Manufacturers may opt to resolve claims under the new procedures or through traditional Lemon Law frameworks — or via arbitration if certified by the Department of Consumer Affairs (DCA).
- Certifying manufacturers must disclose Lemon Law notice information on their websites and in warranty materials.
These process changes are among the most significant updates for 2026 and reflect California’s aim to streamline Lemon Law disputes.
Statute of Limitations Clarified
Under current law:
A Lemon Law lawsuit generally must be filed no later than one year after the expiration of the applicable express warranty.
Additionally, a consumer cannot file more than six years after the original delivery date of the vehicle, though tolling may apply in some circumstances.
These timelines are now well-recognized and consistently applied in California Lemon Law claims.
Used Vehicle Coverage — Supreme Court Ruling Impacting Eligibility
Recent court decisions have clarified how California Lemon Law applies to used vehicles, significantly changing how many claims are evaluated today.
In a major departure from earlier interpretations that once permitted so-called “balance-of-warranty” coverage, a California Supreme Court decision confirmed that used vehicles do not automatically qualify under California’s Lemon Law simply because time remains on the original manufacturer’s warranty.
As a result, many used vehicles sold with remaining warranty coverage may not trigger California Lemon Law protections unless coverage is expressly provided by statute or through a qualifying warranty issued at the time of sale.
What Has Not Changed — Core California Lemon Law Protections
Despite aforementioned legal and procedural shifts, many foundational aspects of California Lemon Law remain the same:
The Law Still Applies to Defective Vehicles Covered by Warranty
California’s Lemon Law — part of the Song-Beverly Consumer Warranty Act — continues to protect consumers when a vehicle cannot be repaired after a reasonable number of attempts under the manufacturer’s express warranty.
Qualifying vehicles include:
- New cars, trucks, SUVs, and motorcycles covered by a manufacturer’s warranty.
- Certain recreational vehicles and motor homes within warranty coverage.
Note: Used vehicle coverage under the Lemon Law now depends heavily on specific warranty language and Supreme Court interpretations.
Consumer Remedies Under Lemon Law Remain Strong
If your vehicle meets Lemon Law eligibility, California law still requires manufacturers to either:
- Replace the vehicle, OR
- Repurchase (“buy back”) the vehicle under applicable legal standards.
Consumers may also be entitled to:
- Refunds of purchase price, taxes, finance charges, and other related expenses.
- Payment of towing, rental car costs, attorney fees, and civil penalties in certain cases.
How California Lemon Law Works — An Updated Overview
To qualify under California’s Lemon Law:
California does not specify a fixed number of repair attempts, though common industry practice often treats four or more attempts as sufficient for a presumption of a lemon for recurring issues – with fewer attempts required for safety-related defects.
Written Notice Requirement (Post-2024/2025 Change)
As noted above, recent law changes now require consumers to send a formal written demand to the manufacturer before pursuing civil penalties, a step that did not exist under older Lemon Law procedures.
This written notice must clearly demand restitution or replacement and is a prerequisite for certain legal actions under updated procedures.
Arbitration & Alternative Paths
Under California’s 2025 Arbitration Certification Program, consumers can pursue approved arbitration programs as an alternative to court. Certified arbitration programs offer a structured, often faster resolution route and are recognized by the Department of Consumer Affairs.
What You Should Do If You Suspect a Lemon
To protect your rights under California Lemon Law:
California continues to maintain one of the nation’s strongest consumer protection regimes for defective vehicles. However, changes taking effect through 2026 — especially around written notice, arbitration options, used vehicle eligibility, and filing deadlines — mean that understanding updated procedures is essential.
Working with an experienced California Lemon Law attorney can help ensure your rights are fully protected in light of these updates.
Our Lemon Law lawyers in California will help you understand which option is in your best interest.
Don’t navigate this process alone. With proven California Lemon Law services provided by our team at no cost to you, there’s simply no reason to delay.
We work with clients from Bakersfield, Berkeley, Fresno, Long Beach, Los Angeles County, Oakland, Orange County, San Francisco, Sacramento, San Diego, San Jose, and the entire state of California.