If your vehicle is exhibiting a substantial defect that severely impacts its use, value, or safety, it would seem clear that you could potentially have a good basis for a lemon law claim (provided you also satisfy other criteria regarding mileage, warranty, timeframes of reporting, and more that vary by state).
You would think dealing with a malfunctioning vehicle would be difficult enough without the manufacturer slow-walking, minimizing, or even avoiding your claim. Tesla is in the news for, in some instances, contributing to buyback delays. How could this happen?
Most Tesla Buyback Claims Occur in California
It’s easy to see why Tesla is in the news regarding issues with their vehicles; they sell many thousands of them per year. The number of claims in California is not surprising if you take into account that that is where the majority of Tesla owners live. So, in our discussion here, we’ll look at Tesla and California lemon law.
Please note that a free consultation with an experienced lemon law attorney can provide you with insights specific to your situation. We encourage you to take advantage of our free case review (866-440-2460), whether you live in California or elsewhere.
How Lemon Laws Work
As we mentioned, a vehicle has to exhibit a substantial defect to be considered a lemon. The defect must severely impact the vehicle’s use, value, or safety. We’ll review California lemon law, and then we’ll look at how Tesla has acted in some cases regarding buybacks.
Note: all states use the same substantial defect premise, then add their own additional lemon qualification criteria.
California Lemon Law Details
In California, the law “presumes” your car is a lemon if any of these occur within the first 18 months or 18,000 miles:
- The manufacturer or its agents fail to resolve a life-threatening issue (like brakes or steering) in 2 attempts.
- The manufacturer or its agents fail to fix the same substantial problem in 4 attempts.
- Time in shop: The car is out of service for more than 30 total days for repairs.
Your lemon law attorney will navigate the notification of the manufacturer regarding your claim and handle applicable reporting deadlines.
Note: It’s likely you are bound by Tesla’s ‘forced arbitration’ clause unless you opted out in writing within 30 days of your purchase. This moves your case to a private hearing, but your legal protections remain the same. Your attorney can represent you throughout the arbitration process to ensure you receive a fair settlement. The law requires the manufacturer to pay for your reasonable attorney fees if you win.
Learn more about California lemon laws here.
With the aforementioned points in mind, we’ll see what could occur to create a barrier to a claim. Note that there is the potential for buyback delays with any manufacturer. Here we’ll look at some issues that have come up with Tesla and then how a lemon law attorney can help you overcome them.
For more information on arbitration and other frequently asked lemon law questions, click here.
Tesla’s Specific Issues Involving Buybacks
It’s true that other manufacturers can pose challenges to getting a buyback, but Tesla’s been in the news a lot; its popularity has been high (with a few peaks and valleys). In the last four years, they’ve sold over 2 million units in the US. With this share of the EV market and the industry-wide increasing trend of faulty technology contributing to claims, it stands to reason that Tesla might, just on a percentage basis, be involved in a number of lemon law cases.
These three points can occur when pursuing buybacks and, with Tesla, may add to the length of time it takes to resolve a claim.
- Tesla may offer a “goodwill” buyback to settle a case so they don’t have to actually get the car designated as a lemon. Then, after the buyback, they can resell the vehicle without a branded title.
You might think that if you’re offered a “goodwill” buyback to quickly settle your case, that that would be a viable option. Again, we encourage you to schedule a free consultation with a lemon law attorney (866-440-2460) before you act, as this quick buyback offer may not be in your best interest.
- Tesla may deny warranty coverage by claiming a vehicle is “out of spec” or blame drivers for issues that it may have known about.
- Even after agreeing to a buyback, Tesla owners report waiting months for final paperwork. In one December 2024 case, a Model 3 owner waited over 50 days after the agreement just to receive the documents needed to sign over the car while still paying insurance and interest on the faulty vehicle.
Still, how is dealing with Tesla for a buyback different from dealing with other manufacturers?
- Due to Tesla’s legal structure, bottlenecks may occur where cases can sit for months.
- In 2024, Tesla repaired over 5 million vehicles via OTA updates. But OTA fixes may not spell the end of a vehicle’s problems. Some OTA updates may, in some instances, be used as a way to slow-walk the legal clock.
Key point: Your attorney can push for the settlement to finally conclude, and even then Tesla’s response can take months. Even so, the attorney’s skill and experience provide the best opportunity to gain compensation for your vehicle exhibiting a substantial defect.
Image Source: Unsplash
How a Lemon Law Attorney Benefits You
With all the delays involved in the cases we’ve mentioned and linked to, it is important to note that consumers may have had to wait even longer if a lemon law attorney didn’t handle their claim. A lemon law attorney anticipates challenges and fights for the client’s rights so the manufacturer is held accountable to provide compensation for defective vehicles.
The Attorney Stays Focused on the Facts
Obscuring the facts can be one way manufacturers stall lemon law buybacks, and sometimes they do so by blaming technological ‘glitches’ or ‘not being able to reproduce errors’ or problems when the vehicle is in for repairs. A lemon law attorney gathers all the evidence from the client, plus repair records and also expert testimony, to structure a case that proves the vehicle is defective.
The goal is to prove that defect and not let the manufacturer put the blame on the owner for neglect or abuse of the vehicle. Whether the car or truck is electric or any other type, the attorney will use state, and sometimes federal, law to protect the client’s rights for a buyback (or replacement, if that is what the client wants).
Note: Every case is different and involves differing timeframes when your vehicle’s problems occurred. Regarding California lemon law, your attorney will discuss with you the difference between the ‘presumption window’ (18 months or 18,000 miles from delivery) and the statute of limitations window (one year after the warranty expires or six years after the purchase date of the vehicle).
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Depending on your specific situation, the attorney will take into account potential Tesla administrative delays that can be designed to push you out of the “easier” presumption window and into the “harder” one where you have to fight uphill.
Example of how the attorney can protect your rights even after the presumption window closes: The attorney can file a claim even at year three or four, using the car’s internal digital logs to show that the defect started back during the warranty period (if it did), to hold Tesla accountable for the full refund.
Trust Allen Stewart, P.C. for Expert Lemon Law Representation
Allen Stewart, P.C. provides expert representation for all types of lemon law claims, including Tesla buybacks. Our attorneys are well-known across the country and have won many cases, including in California, New York, and Texas. We hold manufacturers accountable to provide compensation for lemon vehicles.
Do you wonder if you need a lawyer for your buyback case? Please know that Tesla and all manufacturers will defend their interests with their legal teams. You must have experienced lemon law attorneys representing you. You don’t need to be concerned about paying our lawyers. The manufacturer is obligated to pay your attorney costs when you win your case.
Time is of the essence with lemon law claims. Don’t wait. Contact Allen Stewart, P.C. now (866-440-2460), or schedule your consultation online.