Prevailing Through Endurance

What are your rights when a recall impacts vehicle resale value?

On Behalf of | Oct 16, 2024 | Lemon Law

Vehicle recalls can affect a car’s resale value, leaving consumers questioning their rights. In California, lemon laws and consumer protection laws provide specific rights to owners when a manufacturer recall impacts vehicle value. 

Understanding these rights helps consumers take the right steps to protect their investment.

Manufacturer obligations

When a recall occurs, the manufacturer must notify the vehicle owner and provide a free repair or replacement to address the defect. The manufacturer must make reasonable efforts to repair the vehicle within a set number of attempts. If they fail to fix the problem, the vehicle qualifies as a lemon. In such cases, the manufacturer must offer a refund or replacement vehicle, protecting the consumer’s financial interest.

Diminished resale value

A recall can reduce a vehicle’s resale value, especially if the defect remains unfixed or if the recall becomes widely known. In California, consumers can seek compensation for diminished resale value if the defect cannot be adequately repaired. If the manufacturer fails to resolve the recall issue, the vehicle may be considered a lemon, leading to further consumer protection options, such as a buyback or compensation for the lost value.

Lemon law protections

California’s lemon law protects consumers when a recalled vehicle cannot be repaired after a reasonable number of attempts. If the vehicle meets the criteria for a lemon, the consumer can pursue a refund, a replacement, or compensation for the decreased value. This law ensures that consumers do not get stuck with a defective vehicle that is difficult to sell due to the recall.

Protecting your investment

Consumers have rights when a recall affects their vehicle’s resale value. Knowing these rights helps consumers receive fair treatment from manufacturers.