California Lemon Law and Other Legal Changes in 2026

If you’ve recently bought or are planning to buy a vehicle in California, you should know that the rules designed to protect you are evolving. California’s lemon law protects you if the vehicle you purchase has a defect. In simple terms, if it’s a lemon. 

Over the past year, lawmakers have rolled out important developments already, and another reform is scheduled for 2026. The changes are intended to take pressure off the current system, which is struggling under the weight of surging claims. This article will explain how the recent updates to the lemon law affect you, and what the upcoming changes mean for car buyers. 

Rising Lemon Law Claims

For years, Lemon Law claims in California have been rising faster than the courts can handle them. If you filed a claim, that meant frustratingly long wait times, even with an experienced California lemon law attorney on your side. Courts became congested as judges were handing huge volumes of complicated cases. Many disputes could have been resolved but instead moved to litigation, which added to the backlog. As a result, the system was in danger of stalling entirely. 

The reason behind skyrocketing claims was threefold. Firstly, manufacturers felt the hit of the pandemic. Production standards suffered, resulting in more defects. Consumer awareness increased, driving more people to take action. Finally, electric vehicles brought another level of complexity to claims that slowed things even further. The State was forced to act. 

What Changed in 2025: Assembly Bill 1755 Explained

The Song-Beverly Consumer Warranty Act, which is the official name for Californian Lemon Law, went through some critical changes in 2024. These were implemented through the California Assembly Bill 1755, which came into effect in 2025. It’s important to note that manufacturers can opt in to the new process and procedures, or elect to resolve claims under existing California Lemon Law statutes. Under the new law, timing and paperwork is more important than ever. 

Stricter Deadlines

The law clarifies a defined time window you have to file a lemon law claim. This is linked to the end of the warranty or the original purchase or delivery date. Previously, you had an open-ended timeline. Now, it’s generally one year after the warranty ends or up to six years from when you bought the vehicle. 

Protections for Used Vehicles

AB 1755 also narrowed Lemon Law coverage for used cars. If you bought a second-hand vehicle that’s still covered by the manufacturer’s original warranty, you may still be protected under Lemon Law. The same goes if you have a pre-owned (CPO) vehicle warranty. However, if the original warranty has expired, or the car came with a basic dealer warranty, your options are more limited. 

Written Notice

This is one of the biggest procedural changes. You can no longer take your dispute straight to court. Instead, you have to notify the manufacturer in writing before filing a lawsuit. This gives the manufacturer a formal opportunity to fix the problem and resolve your dispute. If you skip this step, your claim won’t move forward. The aim is to reduce congestion by resolving cases more quickly and keeping disputes out of court where possible. 

The CARS Act Arrives in October 2026 

From October 1, 2026, California’s Combating Auto Retail Scams (CARS) Act comes into force. This law doesn’t change Lemon Law itself but it does affect what happens when you buy a car, especially a used one. The goal is to stop misleading tactics and pressure-led sales. 

3-Day Cooling Off Period 

Now, after purchasing a used car from a licensed dealer, you have a three-day window in which to change your mind. This rule applies if:

• You bought the car from $50,000 or less 
• You haven’t driven it more than 400 miles
• The vehicle is undamaged 

The dealer can charge a restocking fee, but they cannot refuse the return if the conditions are met. You don’t need to give a reason. 

Clearer Pricing Requirements 

Dealers must disclose the full price of the vehicle upfront. They can no longer hide charges or reveal them late in the buying process. Optional add-ons cannot be included unless you’ve explicitly agreed to them. They must also be clearly stated and provide actual value and benefit to you as the buyer. 

Stricter Sales Rules 

Finally, the law cracks down on misleading sales practices. Dealers must operate with full transparency around financing terms, monthly payments, and what you’re agreeing to when you sign on the dotted line. The idea behind this is to avoid a situation where you say later down the line that you didn’t understand the deal, or felt pressured into agreeing to something you didn’t want. 

Endnote

California’s Lemon Law reforms are a necessary response to sustained system strain. They’re not a rollback of consumer protections, but rather an attempt to make the process more efficient. The 2025 changes focused on reducing court congestion. 

The upcoming 2026 CARS Act, while not a Lemon Law specifically, should reduce your chances of buying a defective vehicle in the first place. Ultimately, being educated about both helps you understand your rights, avoid confusion, and make more informed decisions when shopping for your next car.