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    May 11, 2024

    When Does Song-Beverly Apply to a Used Vehicle Sale?

    JK
    By Jamie Keeton
    Mediation Specialist
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    Song-Beverly is most commonly associated with new vehicle lemon law claims, but the statute has a separate provision that applies to used vehicles, and it catches dealers off guard more often than it should. California Civil Code section 1795.5 imposes real warranty obligations on dealers who sell used vehicles with an express warranty. Understanding when those obligations attach, and when they do not, is essential for anyone handling a used vehicle dispute on either side of the table.


    The Trigger: An Express Warranty

    Section 1795.5 does not apply to every used vehicle sale. It applies when a retailer sells a used consumer good and makes an express warranty in connection with that sale. Cal. Civ. Code § 1795.5(a). That distinction matters. A dealer who sells a vehicle as-is, with no warranty, is in a different legal position than one who hands the buyer a document promising that the vehicle is covered for ninety days or one thousand miles.

    When a dealer does issue an express warranty, the statute is clear about the consequence: the dealer assumes the same warranty obligations that a manufacturer bears under the main Song-Beverly statute. The dealer steps into the manufacturer's shoes and bears full responsibility for making the vehicle conform to that warranty.

    That is a significant obligation, and some dealers issue warranty language without fully appreciating what they are promising.


    What Qualifies as an Express Warranty

    An express warranty under Song-Beverly does not require a formal warranty certificate. Cal. Civ. Code § 1791.2 defines it broadly as any written statement arising out of a sale pursuant to which the warrantor undertakes to preserve or maintain the utility or performance of the consumer good or provides for service or repair for a specified period of time.

    In practice, warranty language in a retail installment sales contract, a separate warranty document, a window sticker, or a written statement made in connection with the sale can all create an express warranty obligation. Dealers who include boilerplate warranty language in their standard sales paperwork without carefully considering what it promises have sometimes found themselves facing section 1795.5 obligations they did not intend to create.

    The lesson for dealers is straightforward: warranty language has legal consequences, and the decision about what warranty to offer on a used vehicle is worth treating as a deliberate business decision rather than a documentation formality.


    The Implied Warranty Limitation

    When a used vehicle is sold with a written express warranty, the statute also imposes an implied warranty of merchantability, but its duration is limited. Under section 1795.5(c), the implied warranty on a used vehicle sold for more than five hundred dollars runs for thirty days or one thousand miles, whichever comes first, unless a longer written warranty is provided.

    That limitation is one of the important differences between new and used vehicle claims under Song-Beverly. A new vehicle buyer gets the full implied warranty protections of the statute. A used vehicle buyer gets a shorter window, calibrated to the reality that used goods carry more inherent uncertainty about their condition at the time of sale.


    Where Section 1795.5 Does Not Reach

    The statute has limits that matter for evaluating whether a claim exists.

    The as-is defense is real and available. A dealer who sells a used vehicle with no warranty, and who complies with the disclosure requirements under the Federal Trade Commission's Used Car Rule and California law, does not trigger section 1795.5. The as-is sale is a legitimate transaction structure, though as discussed in a separate article in this series, the as-is defense has meaningful limitations that dealers sometimes overlook.

    The statute applies to retailers, not private sellers. A private individual selling a used vehicle is not subject to section 1795.5 regardless of what representations are made in connection with the sale. The statute's obligations fall on those who sell consumer goods in the ordinary course of their business.

    Finally, section 1795.5 governs the dealer's warranty obligation separately from any original manufacturer warranty that may still be in effect on the vehicle. If a consumer buys a used vehicle that is still within the manufacturer's new vehicle warranty period, both obligations can coexist, but they arise from different relationships and different documents.


    The Practical Implication

    For dealers, the most effective risk management approach to section 1795.5 is to make the warranty decision deliberately. What warranty are you offering, what does it cover, and what is the realistic cost of honoring it if the vehicle has a problem? A dealer who has thought through those questions before issuing a warranty is better positioned than one who discovers the answer in a demand letter.

    For consumers and their counsel, the threshold question in any used vehicle warranty case is whether an express warranty was actually issued and what it covers. The strength of the section 1795.5 claim follows from the answer to that question.

    If you are handling a used vehicle warranty dispute and want to discuss how mediation might help move it toward resolution, we are glad to talk.

    Need professional Lemon Law mediation?

    Don't navigate complex consumer disputes alone. Let Jamie Keeton's expertise work for you to achieve a faster, fairer resolution.

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