Song Beverly Warranty Rights

The Song-Beverly Consumer Warranty Act, which can be found starting at California Civil Code section 1790, provides protection for consumers who purchase or lease new motor vehicles and other consumer products. As it relates to new motor vehicles, the law provides that if the manufacturer or its representative in this state, such as an authorized dealer, is unable to service or repair the vehicle to meet the terms of an express written warranty after a reasonable number of repair attempts, the manufacturer is required to promptly return the purchase price to the buyer or replace the vehicle. The term buyer also includes a lessee under the law.

What Must be Returned Under the Song-Beverly Consumer Warranty Act? 

The amount that must be returned includes the down payment, monthly payments, and the price paid for manufacturer-installed items but does not include the price paid for non-manufacturer or aftermarket items installed by the dealer. The buyer cannot be required to accept a replacement vehicle by the manufacturer and is free to choose a refund. Conversely, the buyer cannot force the manufacturer to replace their vehicle, as long as the manufacturer is offering a refund of the amount paid for the purchase price as required by law.

Whatever remedy the consumer chooses, the manufacturer is responsible to pay for sales or use tax; license, registration, other official fees, plus any incidental damages that the buyer may have incurred such out of pocket repair costs, towing, and rental car expense.

What Will the Buyer be Charged For? 

The buyer may be charged for their use of the vehicle by the manufacturer. This usage fee applies whether the vehicle is replaced or the purchase price is refunded. The amount that may be charged for use is determined by dividing the number of miles on the vehicle at the time it is first delivered for repair of the problem justifying repurchase or replacement by 120,000 and then multiplying that decimal by the actual price paid for the vehicle.

For example, if the buyer paid $30,000 for a car and it had 5,000 miles on the odometer at the time it was delivered for repair of a problem justifying repurchase, the buyer would be charged 5,000 (mileage)/120,000 (set by law) x $30,000 (purchase price) which equals a usage fee of $1,250. Even if the buyer drove an additional 20,000 miles before the manufacturer agreed to repurchase the vehicle, the usage fee would be set using this formula based on the first repair attempt. The usage fee is deducted from any refund the buyer receives for the repurchase.

Song-Beverly applies for the entire period of your warranty. For example, if a vehicle is covered by a five year 60,000 mile warranty, and the buyer discovers a nonconformity after three years (but less than 60,000) miles, which is not repaired after a reasonable number of repair attempts, the manufacturer may still have to repurchase or replace the vehicle as outlined above.

Song-Beverly does not apply if the problem was caused by abuse after the vehicle was delivered. Be sure to follow the terms of the owner’s manual for maintenance and proper use of the vehicle.

Statute of Limitations of Song-Beverly Consumer Warranty Act

The statute of limitations to file a law suit for breach of warranty for violation of Song-Beverly is four years from the date of breach. However, the buyer should act promptly to try to resolve the problem as soon as they believe a valid claim exists so as not to allow an argument by the manufacturer that the delay was an indication that problems must not have been that substantial.