Are Used and Leased Cars Covered by California Lemon Law? (2025 Update)

If you’re dealing with a problematic vehicle, you’re probably wondering: “Does California’s Lemon Law protect me if my car is used or leased?” It’s one of the most common questions we get at our law office, and the answer isn’t as straightforward as you might think. With significant changes taking effect in 2025, understanding your rights has never been more crucial.

The short answer? Yes, both used and leased vehicles can be covered by California’s Lemon Law – BUT there are important conditions that determine your protection. Let’s break down exactly what you need to know.

New and Newly Leased Vehicles: Full Protection Under the Law

If you purchased or leased a brand-new vehicle in California, you’re in the best position for Lemon Law protection. New cars, trucks, motorcycles, and even RVs are fully covered under California’s Song-Beverly Consumer Warranty Act as long as they’re still under the original manufacturer’s warranty.

This means if your new vehicle has substantial defects that affect its safety, value, or use – and the manufacturer can’t fix them after a reasonable number of attempts – you may be entitled to a full refund or replacement vehicle.

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Used Vehicles: The Certified Pre-Owned Requirement

Here’s where things get more complicated. Used vehicles are only covered by California’s Lemon Law if they are certified pre-owned vehicles that remain under the original manufacturer’s warranty.

This is a crucial distinction that many consumers don’t realize. A recent California Supreme Court decision significantly limited lemon law protections for regular used cars, even those with active warranties. The court determined that used cars don’t qualify as “new motor vehicles” under the Act, creating a challenging situation for consumers who purchase used vehicles from independent dealers or private parties.

However, certified pre-owned vehicles still maintain protection because they:

  • Come with manufacturer backing and certification
  • Include extended warranty coverage from the original manufacturer
  • Meet specific quality standards set by the manufacturer
  • Are typically sold through authorized dealerships

If you bought a used car that isn’t certified pre-owned, your Lemon Law options may be severely limited, even if the vehicle is still under some form of warranty coverage.

Leased Vehicles: Generally Protected Under the Law

Good news for lessees: California’s Lemon Law applies to leased cars, whether new or used, as long as the vehicle is still covered by the original manufacturer’s warranty.

If you leased a defective vehicle, you have the same rights and protections as if you had purchased it outright. This includes the right to pursue a refund of all payments made or a replacement vehicle if the manufacturer can’t adequately repair the problems.

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For your leased vehicle to qualify for Lemon Law protection, it must meet these criteria:

  • Leased in California for personal, family, or household use
  • Still covered by the original manufacturer’s warranty
  • Has substantial defects that impact safety, value, or use
  • The manufacturer has had reasonable opportunities to repair the issues

The protection applies even if you’ve already returned the vehicle to the dealership, provided the problems occurred during your lease period and were properly documented.

Major Changes in 2025: What You Need to Know

Starting in 2025, California’s Lemon Law underwent significant procedural changes that affect how consumers can pursue claims. These changes make it more important than ever to act quickly and follow proper procedures.

Stricter Time Limits

The biggest change is the new filing deadline for those manufacturers that opted into the new law. You now have much less time to bring a lemon law claim. Under the 2025 rules, claims must be filed within one year after the warranty expires or six years from the vehicle’s delivery date, whichever comes first.

This represents a major tightening from the previous four-year statute of limitations that was based on when the defect was discovered. The clock is ticking faster, so don’t delay if you suspect you have a lemon.

Pre-Suit Demand Requirement

Before you can pursue civil penalties under the updated law, you must first send a written demand to the vehicle manufacturer requesting a repurchase or replacement. This isn’t just a casual letter – it must include specific information:

  • Detailed description of the defects
  • Documentation of all repair attempts
  • Copies of your purchase or lease contract
  • Repair orders and service records
  • Vehicle registration information

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The manufacturer then has 30 days to respond to your demand. If you skip this step, you can still file a lemon law claim, but you won’t be eligible to seek civil penalties, which can significantly reduce your potential recovery.

Vehicle Possession Requirements

Under the 2025 rules, you must have the vehicle in your possession when you send the repurchase or replacement demand letter. This means you can’t pursue penalties if you’ve already traded in or sold your lemon vehicle before initiating the formal process.

Expanded Coverage

The updated law now explicitly covers a broader range of vehicles, including cars, trucks, motorhomes, travel trailers, and towable RVs. This expansion provides protection for more consumers dealing with defective recreational vehicles.

Why You Need Experienced Legal Help

These 2025 changes make navigating California’s Lemon Law more complex than ever. Manufacturers and their legal teams are well-versed in these new requirements and may use procedural missteps to deny valid claims.

Here’s where having an experienced Lemon Law attorney like Sotera Anderson becomes invaluable:

  • Proper Documentation: We ensure all required paperwork is completed correctly and submitted on time
  • Strategic Timing: We help you meet the new, stricter deadlines while building the strongest possible case
  • Manufacturer Negotiations: We handle communications with manufacturers and their representatives
  • Maximizing Recovery: We pursue all available remedies, including civil penalties when appropriate

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Attorney Sotera Anderson has successfully helped countless California consumers navigate these complex requirements and secure fair compensation for their lemon vehicles. The process doesn’t have to be overwhelming when you have expert guidance.

Don’t Let Procedural Requirements Derail Your Case

The new 2025 rules create numerous opportunities for manufacturers to escape liability based on technicalities. Missing a deadline, failing to include required documentation, or not following the proper demand procedures can jeopardize your entire case.

This is particularly important for consumers with used or leased vehicles, where coverage requirements are already more restrictive. You can’t afford to make mistakes that could cost you thousands of dollars in potential recovery.

Take Action Today

If you’re dealing with a problematic new, certified pre-owned, or leased vehicle in California, don’t wait to explore your options. The new time limits mean that delays can be costly, and the procedural requirements demand careful attention to detail.

Contact the Law Offices of Sotera L. Anderson today for a free consultation about your potential Lemon Law case. We’ll review your situation, explain your rights under the updated 2025 rules, and help you understand whether your vehicle qualifies for protection.

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Remember, California’s Lemon Law is designed to protect consumers from defective vehicles, but only if you follow the proper procedures within the required timeframes. Don’t let a lemon vehicle continue to drain your finances and cause you stress – get the experienced legal help you need to pursue the compensation you deserve.

Visit our website to learn more about how we can help you navigate California’s updated Lemon Law requirements and fight for your consumer rights.

The Ultimate Guide to California Lemon Law Documentation: Everything You Need to Succeed Under New 2025 Rules

Hey there! If you’ve landed on this page, you’re probably dealing with a problematic vehicle and wondering what changed in 2025 with the California lemon law. Well, buckle up: because there have been some pretty significant updates that affect how you need to handle your documentation and claims.

Before you try to tackle this alone, talk with Lemon Law Attorney Sotera L. Anderson. With the 2025 rule changes, having a professional in your corner ensures your case is handled correctly, increases your chances of success, and makes the process as stress-free as possible.

The good news? You still have strong consumer protections. The challenging news? The rules got stricter, deadlines got tighter, and proper documentation became absolutely critical to your success. Let’s break down everything you need to know to protect yourself under the new 2025 regulations.

What Actually Changed in 2025?

California’s lemon law got a major overhaul thanks to Assembly Bill 1755 (AB 1755) and Senate Bill 26 (SB 26). These weren’t just minor tweaks: they fundamentally changed how lemon law claims work in our state.

The biggest changes include:

  • Much tighter filing deadlines (we’re talking one year after your warranty expires!)
  • Mandatory pre-suit notice requirements that kicked in April 1, 2025
  • Required mediation before you can move forward with full legal discovery
  • New 30-day vehicle retention rules after giving notice

Think of these changes as California saying, “We want to resolve lemon law disputes faster, but you need to follow the rules precisely.” Miss a step or deadline, and you could lose significant rights and compensation. This is exactly where Lemon Law Attorney Sotera L. Anderson can help: we track every deadline, prepare compliant notices, and manage mediation and negotiations for you so you don’t lose leverage or benefits because of a technicality.

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The New Timeline That Changes Everything

Here’s the reality check: Under the 2025 rules, you now have just one year after your vehicle’s express warranty expires to file a lemon law lawsuit, with an absolute maximum of six years from your original delivery date: whichever comes first.

This is a dramatic tightening from previous rules. What does this mean for you? Start documenting problems the moment they appear. Don’t wait, don’t procrastinate, and don’t assume you have unlimited time to figure things out.

The only good news here is that the clock can be paused (legally called “tolling”) for time your vehicle is out of service for repairs, or for up to 60 days after you provide the mandatory pre-suit notice. But this only works if you have rock-solid documentation of these periods. If you’re unsure about your dates or tolling, contact Sotera’s team for a free, no-obligation review—we’ll calculate your deadlines and strategy for you.

Your Documentation Checklist: What You Must Keep

Prefer to have a pro assemble this for you? Our team can review your records, request missing repair orders, and build a clean timeline so mediation and negotiations go smoothly.

Repair Records and Service History

This is your foundation. Every single time your vehicle goes to the shop, you need:

  • Repair records from every visit that note the following:
  • Exact service dates and times when work was performed on the repair records
  • Detailed descriptions of what problems you reported each time
  • Names and contact info of service advisors and technicians
  • Parts replaced and any diagnostic work performed

Time-Out-of-Service Records

The new law has clearer standards for what constitutes a “reasonable number of repair attempts,” which makes tracking your vehicle’s downtime crucial. Document:

  • Drop-off and pick-up dates for every service visit
  • Whether you received a loaner vehicle or went without transportation or had to rent a vehicle yourself
  • Total cumulative days your vehicle was unavailable
  • Any delays in getting parts or scheduling repairs

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Defect Documentation

Beyond repair records, you need detailed documentation of the actual problems:

  • When the defect first occurred or was first noticed
  • How the problem manifests (strange noises, warning lights, performance issues)
  • Frequency of the problem (constant, intermittent, getting worse)
  • Safety concerns the defect creates
  • Photos or videos of the problem when possible
  • Written communication with dealers about the issues

The Critical Pre-Suit Notice Requirement

This is probably the biggest change for 2025. You must now provide formal written notice to the manufacturer before filing a lawsuit if you want to preserve your right to civil penalties: which can significantly increase your compensation if the manufacturer acted in bad faith. We draft and send this notice for clients to preserve penalties and avoid missteps that can weaken your claim.

What Your Notice Must Include

Your written notice isn’t just a simple “fix my car” letter. It must contain:

  • Your full name and complete contact information
  • Your vehicle’s complete Vehicle Identification Number (VIN)
  • A comprehensive summary of your repair history
  • Detailed descriptions of all vehicle issues and defects
  • A specific request for either repurchase or replacement
  • The date you’re providing the notice

Timing and Delivery Requirements

You must send this notice at least 30 days before filing any lawsuit. During this 30-day period, the manufacturer has time to respond to your demand. Your notice must be sent to the manufacturer’s specific designated address.

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The 30-Day Vehicle Retention Rule

Here’s something that catches many people off guard: After you send your pre-suit notice, you must keep the vehicle for 30 days. You can’t sell it, trade it in, or get rid of it during this period.

We’ll guide you on what to do—and what not to do—so you don’t risk your claim during this window. During these 30 days:

  • Continue documenting any additional problems
  • Keep records of any manufacturer communications
  • Note when you try to use the vehicle and what issues occur
  • Save all correspondence related to your claim

Mandatory Mediation: What It Means for Your Documentation

If the manufacturer does not buyback your vehicle after you send the 30 day notice, you can file your lawsuit.  The 2025 rules require mediation before you can move to full legal discovery. This means you need your documentation organized and ready to present to a neutral mediator before you even get to the traditional lawsuit phase. Attorney Sotera L. Anderson represents you in mediation, presents your case clearly, and negotiates for the best outcome—so you don’t have to navigate it alone.

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Best Practices That Strengthen Your Case

Go Beyond the Minimum

While the law specifies minimum requirements, exceeding them strengthens your position:

  • Take photos or videos of defects when safely possible
  • Save all text messages and emails with dealers or manufacturers
  • Keep contemporaneous notes about how defects affect your daily life
  • Document safety concerns in detail
  • Record any out-of-pocket costs for repairs or alternative transportation

Stay Consistent and Accurate

Never alter, backdate, or embellish your documentation. Manufacturers scrutinize records for inconsistencies, and any discrepancies can undermine your entire claim. If you made an error in your initial documentation, note the correction clearly rather than trying to cover it up.

Act Quickly

The compressed timelines mean you can’t afford to wait. Start documenting issues immediately when they occur, and don’t delay in seeking repairs or maintaining records. Dealers may not retain service records indefinitely, and your memory of specific details will fade over time.

Common Mistakes That Can Sink Your Case

Don’t let these common errors derail your claim:

  • Failing to provide pre-suit notice before filing a lawsuit (you’ll lose civil penalties)
  • Not maintaining complete repair orders or service records (can’t prove reasonable repair attempts)
  • Missing time-out-of-service documentation (weakens your claim even with proven repair attempts)
  • Not keeping the vehicle for 30 days after pre-suit notice (may result in court sanctions)
  • Poor organization of documents (creates doubt about your attention to detail)

Avoid these pitfalls by getting qualified legal help early—one call to our office can save your claim and your sanity.

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Your Action Plan Moving Forward

If you’re dealing with a lemon vehicle in California, here’s your immediate action plan:

  1. Start documenting everything now: don’t wait for the next repair attempt
  2. Contact Lemon Law Attorney Sotera L. Anderson for a free, no-obligation case evaluation—we’ll review your documentation, calculate your deadlines, and lay out your best path. There are no fees or costs to you; manufacturers pay our legal fees under California law.

The 2025 changes to California’s lemon law make proper documentation more critical than ever, but they don’t eliminate your consumer protections. With careful attention to the new requirements and meticulous record-keeping, you can still build a strong case for repurchase of your problematic vehicle.

Remember, the manufacturers have teams of lawyers and specialists working on their side. Make sure you have the documentation and expertise to level the playing field. Your consumer rights are still strong under California law: you just need to follow the new rules precisely to protect them.

If you’re feeling overwhelmed by these new requirements or want professional guidance on your specific situation, don’t hesitate to reach out. At the Law Offices of Sotera L. Anderson, we make the process stress-free: start with a free, in-depth, no-obligation case evaluation, and let us handle the notices, deadlines, mediation, and negotiations. You pay nothing out of pocket—manufacturers pay our legal fees. We offer personal, hands-on representation, quick resolutions, and a track record of 5-star reviews. Visit calemonlawattorney.com or call 855-965-3666 to get help today.

Do You Really Need a Lemon Law Attorney Now? Truth About 2025’s New Rules

If you’ve been wondering whether California’s 2025 lemon law changes make it easier or harder to handle your case alone, I’ve got some straight talk for you. The short answer? These new rules actually make having an experienced lemon law attorney more important than ever before.

I know that might sound like a lawyer just trying to drum up business, but hear me out. The changes that went into effect this year have created a much more complex legal landscape that’s frankly trickier to navigate without professional help.

What Actually Changed in 2025?

Let’s start with the big picture. California implemented the most sweeping lemon law reforms in years through Assembly Bill 1755, which took effect January 1, 2025. These weren’t minor tweaks, they fundamentally changed how you have to approach a lemon law claim.

The state also passed Senate Bill 26 in April 2025, which added another layer of complexity by letting manufacturers choose which set of rules they want to follow. Yes, you read that right: different car companies might be operating under completely different procedures.

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The New Roadblocks You’ll Face

Mandatory Written Notice Requirements

Here’s one of the biggest changes: you now must contact the manufacturer in writing and formally request a repurchase before you can file certain types of damage claims. This isn’t just a courtesy heads-up: it’s a legal requirement that can make or break your case.

The problem? There’s a specific way this notice needs to be written, and if you get it wrong, you could torpedo your entire claim before it even gets started. You also have to send the notice to a specific address. I’ve already seen cases where well-meaning consumers sent generic complaint letters that didn’t meet the technical requirements, effectively resetting their legal timeline or worse.

Compressed Time Windows

The new law also shortened your window for taking legal action. You now have to request a repurchase within six years of when your vehicle was originally sold OR within one year of your warranty expiring: whichever comes first. That might sound generous, but when you factor in all the new procedural steps you have to complete first, that time gets eaten up fast.

The Manufacturer Response Game

Once you send that required written notice, manufacturers have 30 days to respond, then another 30 days to actually process a repurchase if they agree to it. Sounds straightforward, right? Wrong.

What the law doesn’t tell you is how to handle it when manufacturers send inadequate responses, try to drag out the process, or claim they never received your notice. Manufacturers also delay and make it more complicated by asking for information and documents that technically are not required under the lemon law. These are common tactics that can derail inexperienced consumers but are manageable when you have legal representation.

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The Opt-In Confusion

Here’s where things get really messy. Thanks to SB 26, manufacturers can now choose whether they want to follow the new AB 1755 procedures or stick with the old rules. This means that depending on who made your car, you might be dealing with completely different legal requirements.

How are you supposed to know which rules apply to your Kia versus your neighbor’s Jeep? Most consumers have no idea, and honestly, even some attorneys are still figuring out which manufacturers have opted in and which haven’t.

New Dispute Resolution Hoops

The 2025 changes also added mandatory arbitration for attorney fee disputes for certain timeframes and required mediation before you can go to trial. While these might sound like consumer-friendly alternatives to court, they’re actually additional procedural hurdles that require specific legal knowledge to navigate effectively.

Arbitration and mediation aren’t just “let’s sit down and talk it out” sessions. They have their own rules, deadlines, and strategies that can significantly impact your case outcome.

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When the “Simple” Route Might Work

To be completely fair, there are a few scenarios where you might be able to handle a lemon law case yourself under the new rules:

  • Your defect is extremely obvious and well-documented
  • The manufacturer is being cooperative (rare, but it happens)
  • You have a very straightforward case with clear-cut evidence
  • You’re comfortable navigating complex legal procedures and deadlines

But even in these “simple” cases, the margin for error has gotten much smaller. One missed deadline or incorrectly formatted notice could cost you thousands of dollars in potential recovery.

Why Attorneys Are More Valuable Now, Not Less

We Know the Procedural Maze

The new rules created a complex procedural maze that changes depending on which manufacturer you’re dealing with. Experienced lemon law attorneys have already worked through these new procedures and know how to avoid the common pitfalls.

We Handle the Technical Requirements

That mandatory written notice I mentioned? We know exactly how to format it, what language to use, and how to ensure it meets all legal requirements. We also know how to document delivery so manufacturers can’t claim they never received it.

We Understand Manufacturer Tactics

Car companies didn’t suddenly become more consumer-friendly just because the law changed. If anything, they’ve developed new ways to take advantage of the additional procedural requirements to delay or deny valid claims. We’ve seen these tactics before and know how to counter them.

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The Cost Reality Check

Here’s something most people don’t realize about California lemon law: if you win your case, the manufacturer typically has to pay your attorney fees. That means hiring an experienced attorney often doesn’t cost you anything out of pocket, but trying to go it alone and losing could cost you everything.

Under the new rules, with all their additional complexity, the risk of making a costly mistake has gone way up, while the potential benefit of professional representation has stayed the same.

The Legislative Uncertainty Factor

There’s another wrinkle you should know about. Governor Newsom noted that many automakers have complained that some of the new AB 1755 procedures are “unworkable.” The lawmakers have already agreed to introduce another bill in the current legislative session to potentially modify these rules again.

This ongoing uncertainty means the legal landscape could continue shifting. Attorneys who specialize in this area stay on top of these changes, but individual consumers trying to navigate their own cases could easily get caught off guard by new developments.

Making the Right Choice for Your Situation

Look, I’m not going to tell you that every single person with a lemon vehicle needs an attorney. But I will tell you that the 2025 changes have made the process significantly more complex and technical, with much less room for error.

If you’re dealing with a potential lemon, the smartest move is usually to at least consult with an experienced lemon law attorney to understand your options. Most of us offer free consultations, so you can get professional advice about your specific situation without any upfront cost.

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The bottom line? California’s 2025 lemon law changes were supposed to streamline the process, but they’ve actually made professional legal representation more valuable than ever. Don’t let the new procedural requirements turn your valid lemon law claim into a missed opportunity.

If you think you might have a lemon vehicle, don’t wait: those new compressed timeframes mean every day counts. Get the help you need to navigate these new rules and protect your consumer rights.

Send your purchase contract and repairs records to Lemon Law Attorney Sotera Anderson for a free case review: Sotera@CaLemonLawAttorney.com

7 Mistakes You’re Making with Your California Lemon Law Claim (and How to Fix Them)

Getting stuck with a lemon car is frustrating enough – but making preventable mistakes with your California Lemon Law claim can turn a bad situation into a complete nightmare. After years of helping consumers fight back against defective vehicles, I’ve seen the same errors pop up again and again. The good news? These mistakes are totally avoidable once you know what to look for.

Let’s dive into the seven biggest blunders people make with their lemon law claims and exactly how you can steer clear of them.

Mistake #1: Playing the Waiting Game with Repairs

Here’s a scenario I see all the time: Your car starts making a weird noise, but you think, “Maybe it’ll just go away.” Months pass, the problem gets worse, and only then do you finally take it to the dealer. By then, you’ve already hurt your case.

California Lemon Law requires that you give the manufacturer a “reasonable number” of repair attempts for the same issue. When you wait too long to start the repair process, it can look like the problem wasn’t that serious or persistent in the first place.

The Fix: Don’t be a hero – take your car in as soon as you notice recurring problems. Even if it seems minor, document it. That weird rattling sound today could be evidence of a major transmission issue tomorrow. The sooner you start building your paper trail, the stronger your case becomes.

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Mistake #2: Terrible (or Non-Existent) Record Keeping

This is the big one – the mistake that kills more lemon law cases than any other. Poor documentation is like trying to prove you went to a concert without keeping your ticket stub. It’s nearly impossible to demonstrate your case without proper records.

I’ve seen consumers lose legitimate claims simply because they couldn’t prove the timeline of repairs or the persistent nature of their vehicle’s defects. Every repair attempt, every conversation, every day your car spent in the shop – it all matters.

The Fix: Become a documentation machine. Here’s your checklist:

  • Always request detailed repair invoices, even if they “couldn’t find the problem”
  • Keep every work order, warranty document, and service record
  • Maintain a repair log with dates, symptoms, and outcomes
  • Note how problems affect your daily life (missed work, safety concerns, etc.)
  • Take photos of any visible defects

Think of it this way: if you can’t prove it happened, legally it didn’t happen.

Mistake #3: Speaking in Code to Your Service Advisor

Walking into a dealership and saying “my car is acting weird” is like calling 911 and saying “something bad happened.” The more vague you are about problems, the harder it becomes to build a solid case.

Vague complaints lead to vague repair attempts, which create weak documentation. Your service records should tell a clear story of persistent, specific defects.

The Fix: Be as specific as possible when describing problems. Instead of “the transmission is acting up,” try “the transmission jerks violently when shifting from second to third gear, especially when accelerating from a stop.” The more detail you provide, the better your service records will support your eventual claim.

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Mistake #4: Forgetting About Phone Calls and Conversations

Many people keep their repair paperwork but completely ignore documenting their conversations with dealers, service managers, and manufacturer representatives. These interactions often contain crucial admissions or promises that could strengthen your case.

The Fix: Keep a communication log that includes:

  • Date and time of each conversation
  • Name and title of who you spoke with
  • Summary of what was discussed
  • Any promises made or next steps agreed upon
  • Follow up with email confirmations when possible

If a service manager tells you “we’ve seen this problem in other cars” or “the manufacturer is aware of this issue,” that’s gold for your case – but only if you document it.

Mistake #5: Playing Beat the Clock (And Losing)

California gives you four years from when you first experienced warranty-covered problems to file a lemon law claim. Sounds like plenty of time, right? Wrong. Many people wait until year three or four to take action, then panic when they realize how much work is involved in building a proper case.

The Fix: Don’t wait until you’re staring down a deadline. As soon as you suspect you might have a lemon, start keeping detailed records and consider consulting with a lemon law attorney. Even if you’re not ready to file a claim yet, getting professional advice early can save you from costly mistakes down the road.

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Mistake #6: The “Maybe One More Try” Trap

This might sound backwards, but there’s actually such a thing as too many repair attempts. California law only requires a “reasonable number” of tries to fix the same problem – typically four attempts, or two if the defect could cause serious injury.

Some consumers keep bringing their car back for repair attempt number five, six, or seven, thinking it shows persistence. Actually, it can work against you by suggesting you’re okay with the endless repair cycle.

The Fix: Know when to stop. Once you’ve hit the reasonable number of repair attempts (usually four for most issues, two for safety-related problems), it’s time to pivot from repair mode to lemon law mode. Continuing beyond this point wastes time and could potentially run you up against statute of limitations deadlines.

Mistake #7: Going It Alone Against the Manufacturer

Here’s the tough truth: car manufacturers have teams of experienced lawyers whose job is to minimize payouts on lemon law claims. They know every technicality, every loophole, and every way to drag out the process hoping you’ll give up.

Meanwhile, you’re trying to navigate complex legal requirements while dealing with the daily frustration of driving a defective vehicle. It’s not a fair fight.

The Fix: Level the playing field by working with an experienced California lemon law attorney. Most work on contingency, meaning the manufacturer pays their fees when you win. A good attorney will help you avoid the other six mistakes on this list while handling negotiations and legal filings.

What Counts as a Lemon in California?

Don’t make the mistake of thinking only major mechanical failures count. California’s Lemon Law covers any defect that substantially impairs your vehicle’s use, value, or safety. This includes:

  • Persistent electrical problems
  • Chronic air conditioning issues
  • Recurring transmission glitches
  • Paint defects that affect the car’s value
  • Infotainment system failures

Even seemingly “minor” issues can qualify if they keep happening and significantly impact your driving experience.

The Bottom Line

Avoiding these seven mistakes won’t guarantee you’ll win your lemon law case, but it will give you the best possible shot at getting the compensation or replacement vehicle you deserve. Remember, the manufacturers are counting on you to make these errors – don’t give them the satisfaction.

If you’re dealing with a potential lemon in Los Angeles, Orange County, Riverside, or anywhere else in California, don’t wait to start building your case properly. The sooner you begin documenting everything and seeking professional guidance, the stronger your position becomes.

Your lemon law rights exist for a reason – make sure you’re positioned to use them effectively.

If you think you have a lemon, call Lemon Law Attorney Sotera Anderson for help. 855-965-3666

What Does “Negative Equity” Mean for your Lemon Law Case?

What Is Negative Equity in Car Buying?

If you’ve ever bought a car while still owing money on your previous vehicle, chances are you’ve heard phrases like “negative equity” or being “upside-down” on your loan. But what does that actually mean, and why does it matter in a California Lemon Law case?

Negative equity happens when you owe more on your car loan than the car’s current market value. Let’s put it in plain terms:

  • You owe $20,000 on your car loan
  • The car is only worth $15,000 if you trade it in

That $5,000 gap is your negative equity.

This often happens when you trade in a vehicle you still owe money on and roll that balance into a new car’s financing. The old loan joins the new one, making your starting balance much higher.

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A simple diagram showing a car’s value versus the loan balance.


How Lemon Law Buybacks Usually Work

California’s Lemon Law exists to protect consumers stuck with cars that just won’t stop having problems. If your new vehicle has significant defects that can’t be repaired, the manufacturer may have to buy it back and refund what you’ve paid.

Here’s what lemon law compensation typically includes:

  • Your down payment
  • Monthly car payments you’ve made
  • Registration, taxes, and official fees
  • Payoff of your remaining loan balance
  • Incidentals
  • Attorney Fees and Costs

But it gets tricky when you have negative equity—especially if it was rolled over from a previous vehicle.


The Negative Equity Dilemma: Who Covers That Debt?

When car buyers roll negative equity into a new car loan, then get rid of that car (for example, under Lemon Law), the following happens:

  1. The buyback process determines how much the manufacturer is supposed to pay you.
  2. Some expect the manufacturer to pay off everything owed on the car—including the negative equity from your trade-in.
  3. In reality, manufacturers often exclude negative equity from the buyback calculation or argue it should be deducted.

This means, with a lemon buyback, you might find yourself still owing thousands of dollars in negative equity—money that has nothing to do with the new lemon car, but everything to do with your prior trade-ins and loans.

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A sad face next to a car and a pile of “debt” receipts showing what’s left over after a buyback.


What Does California Law Say About Negative Equity in Lemon Cases?

This is where things get foggy, even for legal experts.

  • Consumer perspective: Negative equity was part of the “price paid or payable”—it’s the amount you actually financed and are on the hook for, so why shouldn’t it be reimbursed?
  • Manufacturer’s view: They shouldn’t be responsible for clearing debts from your previous vehicle—you’re only entitled to what the lemon car itself is worth, plus your actual out-of-pocket costs for it.

The California legislature passed new law this year (2025) that says the manufacturer gets to deduct for the negative equity in lemon law buybacks.

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A scale balancing “consumer rights” versus “manufacturer interests” with a question mark overhead.


Why Negative Equity Surprises So Many Lemon Law Clients

Let’s walk through a common scenario:

  1. You’re fed up with your defective car and file a lemon law claim.
  2. Months later, you’re offered a buyback.
  3. You receive the settlement paperwork—and your jaw drops. The manufacturer is not offering to pay the full (high) balance you owe on your loan!
  4. You realize the excluded portion is the negative equity from your last car that got rolled into this one.

Suddenly, your “reimbursement” feels a lot less.

Bottom Line: Always know your negative equity position before purchasing a new vehicle and before pursuing a lemon law case.


Tips to Protect Yourself from Negative Equity Pitfalls

1. Check Your Loan Payoff Versus Your Vehicle’s Value
Use reliable online valuation tools or consult with your lender to get a clear picture. Know what’s left from any previous trade-ins that’s still on your loan.

2. Understand Your Paperwork
Before you sign a new car loan, look for wording about “amount financed,” “negative equity,” or trade-in balances. Know what debt is being rolled forward.

3. Be Upfront with Your Lemon Law Lawyer
Share every detail about your financing—including leftovers from prior cars. This helps your attorney strategize for the maximum recovery possible.

4. Ask for Calculations Early
When negotiating a lemon law settlement, specifically ask how negative equity is handled in their buyback offer. Get those numbers in writing!

5. Consider Expert Help
These cases can hinge on technicalities and negotiations. The team at the Law Offices of Sotera L. Anderson focuses on guiding California car owners through every twist and turn—including the negative equity issue. Read more about tips for a successful lemon law claim.

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A checklist titled “Avoiding Lemon Law Surprises” with check marks next to each tip above.


FAQ: Negative Equity & California Lemon Law

Q: Does negative equity mean I can’t get any money back in a lemon law case?
A: Not at all! You’re still eligible for a buyback if your car qualifies as a lemon. The negative equity issue only affects how much is reimbursed and whether you’ll have leftover debt after the buyback.

Q: Should I never roll over negative equity when buying another car?
A: If you can avoid it, that’s safest. Rolling over old debt means you’re always playing catch-up… and it can cause problems if the new car turns out to be a lemon.

Q: Can my lemon law attorney force the manufacturer to pay negative equity too?
A: Sometimes—but not always. It depends on negotiations and the history of problems.

Q: How do I know if my situation is complicated by negative equity?
A: If you owed more than your previous car was worth when you traded it in, and that extra balance became part of your new loan, you probably have negative equity. Check your original paperwork or ask your lender for a breakdown.


The Takeaway for California Car Owners

Dealing with a lemon is stressful enough—don’t let negative equity add insult to injury. By understanding how rolled-over debt can impact your buyback, asking smart questions, and working with experienced counsel, you can avoid unpleasant financial surprises.

If you’re unsure about negative equity or want personalized advice about your rights under California’s changing lemon law landscape, reach out to the friendly team at the Law Offices of Sotera L. Anderson. We’re advocates for consumers, and we’ll help you steer clear of unnecessary pitfalls.

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A person happily consulting with an attorney, symbolizing proactive legal help.


Need help with a lemon law claim or confused about negative equity? Browse our site for in-depth guides, or contact us for a free evaluation: Law Offices of Sotera L. Anderson.

New Lemon Law Changes in California: How AB 1755 & SB 26 Affect Your Rights

California’s Lemon Law landscape looks a lot different in 2025. If you’ve bought a car in recent years or you’re stuck with a vehicle that just won’t behave, it’s time to get up to speed on AB 1755 and SB 26—the laws that have shaken up consumer rights, time limits, and the whole process of getting your lemon fixed or replaced.

AB 1755: What’s Changed for You?

AB 1755 kicks off a new era in lemon law by tightening deadlines for manufacturers and putting more steps between you and your day in court. Here’s what stands out:

1. Shorter Statute of Limitations 

Under AB 1755, you must now file your lemon law lawsuit within one year after your vehicle’s express warranty expires—and in any case, within six years of the car’s original delivery to its first owner. Whichever of these comes first is your hard stop.

What does this mean in plain English?

  • If your bumper-to-bumper warranty is three years, you have only four years from when the car was originally leased/sold to make a claim—even if the warranty hasn’t run out!
  • If you’re the second or third owner, the clock is still ticking from that very first delivery date—not from when you bought the car.

Bottom line: Don’t procrastinate.

Why It’s Bad for Consumers: Your vehicle’s warranty might be 10 years, but if you don’t make a claim within 6 years, you’re out of luck.  Also, there is little you can do to enforce the warranty in years 6-10.  That 10 year warranty could be meaningless.

2. Mandatory Written Notice Before You Sue

Starting April 1, 2025, there’s a new pre-suit step: you have to give the manufacturer formal, written notice at least 30 days before you file a lawsuit if you want to seek civil penalties.

Your written notice must include certain information. It must be sent to a specific email or address.

Plus, you have to keep (and not sell or trade-in) the vehicle during those 30 days to allow a response from the manufacturer.

Why this matters: If you skip this step and file a lawsuit anyway, you’ll lose the right to certain penalties. Judges are strictly enforcing this, so don’t leave it to chance.

3. Mandatory Mediation

AB 1755 requires both sides to attend mandatory mediation within 150 days after the lawsuit gets answered (i.e., after the manufacturer files its response). Litigation pauses until mediation is complete.

In English: Both sides have to try to settle first. If mediation fails, only then can you dig in for full discovery and trial.

Why this is bad for consumers: Manufacturers delay the mediation which means it could take 6 months before the mediation even takes place.  Meanwhile, you are stuck with your problematic vehicle.

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SB 26: The Manufacturer Opt-In System

SB 26 creates a two-lane system—with two sets of rules, depending on your car’s manufacturer.

How It Works:

  • Manufacturers were given a chance to “opt in” and adopt all the AB 1755 changes by July 1, 2025. If they did, those rules apply to their vehicles for the next five years (renewable in five-year blocks).
  • If a manufacturer didn’t join by the July 1 deadline, they can still opt in at the end of any year, applying to cases starting the following year.

Why Does This Matter To You?

  • It gets confusing on which manufacturers opted in and which ones did not.
  • It gets confusing on which lemon law applies to your case.
  • If you own a vehicle from an “opted-in” brand (think: some major automakers, but not all), all the new AB 1755 rules apply.
  • If not, the old lemon law process may still be in play. But manufacturers can opt in and out—so always double-check your car’s situation before you act.

Pro tip: Your case could get a whole lot easier (or trickier) depending on which side of this divide your vehicle’s brand falls.

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What’s the Goal? Quicker, Fairer Results—But Not Without Critics

Supporters’ Viewpoint

Supporters of AB 1755 and SB 26 praise the reforms for shaking off the old, slow system. They see the following benefits:

  • Lawsuits should be resolved faster, dragging on for months instead of years.
  • The mediation requirement will hopefully lead to more settlements—meaning less courtroom drama and cost for everyone.
  • Fewer “frivolous” claims as buyers must act quickly and document everything.

Consumer Advocates’ Concerns

Not everyone’s cheering. Consumer advocates say:

  • The tough new deadlines could trip up ordinary car owners who didn’t realize their car was a lemon until it was almost too late.
  • The written notice requirement might let manufacturers stall, ignore, or somehow game the process.
  • Mediation—while sometimes helpful—can also pressure consumers to settle for less.

The big complaint? The new system is undeniably more complex, and anyone who doesn’t stay on top of the paperwork, timelines, and manufacturer rules could lose out.

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How These Changes Affect California Car Owners

Let’s put it simply: Everything is more time sensitive.

What You Need to Do:

  • Document everything—dates, repairs, conversations, and notices.
  • Contact Law Offices of Sotera L. Anderson as soon as possible so the written notice can be sent in pronto if you’re running into trouble with your vehicle.
  • Beware: The clock is running from when your car was first delivered, not when you first started noticing issues.

If You’re in the Middle of a Lemon Law Mess (or Think You Might Be):

  • Check which system your manufacturer is under—old rules or new (opt-in) rules.
  • Don’t miss your chance: Waiting too long means you may forfeit your claim, no matter how bad your car is.
  • Consult an expert—the rules have gotten complicated, and mistakes can be costly. Chat with a lawyer who lives and breathes California lemon law (like the Law Offices of Sotera L. Anderson, hint, hint).

Key Dates to Remember

  • January 1, 2025: Phase one of AB 1755 takes effect (shortened limitations, new procedures).
  • April 1, 2025: Written notice requirement and some other key steps become mandatory.
  • July 1, 2025: Manufacturer opt-in deadline; courts gain new enforcement powers.

Missed your window? Even if you’ve already missed one deadline, there may be wiggle room—don’t assume you’re out of options until you’ve talked to a professional.

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California Lemon Law: More Complicated, But Still There to Help

Even with these new headaches and rules, the foundational goals of California’s lemon law haven’t disappeared. You still have the right to a safe, reliable vehicle—and manufacturers are still on the hook for repeated, serious defects under warranty.

Just keep in mind: Evidence and fast action are everything now.

Got questions about your car, your rights, or what deadlines apply to your case? Get the help you need before another week ticks by. For resources, FAQs, and more, check out our main website: Law Offices of Sotera L. Anderson.


The above is general info and not legal advice. Every case is different, so get specific legal help for your situation. Want to learn more about California’s reformed lemon law? 

🔧 Top 5 Mistakes People Make Before Calling a Lemon Law Lawyer

You’ve bought a new car, but it’s spending more time in the repair shop than your driveway. Frustration builds. You’re considering legal help—but before you call a lemon law attorney, there are a few things you shouldn’t do. Avoid making these mistakes.

At our firm, we see too many cases where consumers unknowingly damage their own lemon law claims by taking the wrong steps early on. The good news? These mistakes are avoidable. Here are the top 5 mistakes we see—and how to make sure you’re in the best position to get the refund or replacement you deserve.

1. Not Keeping Repair Records

The Mistake:
Tossing service records, invoices, or repair orders.

Why It Hurts Your Case:
Under California’s lemon law, your claim relies heavily on documentation—especially repair orders and work invoices showing what the dealer did (or didn’t do) to fix the problem.

What to Do Instead:
Every time your vehicle goes in for repairs, make sure you leave with:

  • A repair order when you drop it off

  • A repair invoice when you pick it up
    Review both for accuracy. If something’s missing (like the issue you reported), ask for it to be corrected in writing.


2. Giving the Dealer Unlimited Chances to “Try Again”

The Mistake:
Allowing repair after repair for the same issue—without asking questions or setting limits.

Why It Hurts Your Case:
California’s lemon law doesn’t require an endless number of repair attempts. If the same problem keeps happening after a reasonable number of tries, the law may entitle you to a refund or replacement. But if you keep going back without taking legal action, the manufacturer may argue that you were satisfied with the service.

What to Do Instead:
Once you’ve had 2+ repairs for a serious safety issue, or 4+ repairs for any other recurring issue, it’s time to talk to a lemon law attorney.


3. Accepting Verbal Assurances Without Written Proof

The Mistake:
Trusting the dealer or manufacturer when they say, “We’ll take care of it later.”

Why It Hurts Your Case:
Verbal promises are rarely enforceable. Manufacturers often delay or deny claims later, even if someone at the dealership gave you their word.

What to Do Instead:
Get everything in writing—especially promises about buybacks, repairs, or timelines. If they won’t put it in writing, that’s a red flag.


4. Trying to Handle the Claim Yourself First

The Mistake:
Filing a lemon law claim directly with the manufacturer before consulting an attorney.

Why It Hurts Your Case:
You might unintentionally say something that weakens your claim, agree to a lowball offer, or miss key deadlines. Some manufacturers even pressure consumers into signing releases that prevent them from pursuing a stronger case later.

What to Do Instead:
Speak with a lemon law attorney first. In California, legal fees are paid by the manufacturer if you win—so you have nothing to lose by getting legal help upfront.


5. Waiting Too Long to Take Action

The Mistake:
Letting the months slip by while you hope the problem goes away.

Why It Hurts Your Case:
California has a statute of limitations on lemon law claims. The longer you wait, the harder it becomes to gather records, recall details, or prove the issue started during the warranty period.

What to Do Instead:
If your car still isn’t fixed after a few repair attempts—or the issue keeps coming back—reach out to a lemon law attorney as soon as possible. Timing matters.



A strong lemon law case starts with smart decisions early on. Avoiding these five common mistakes can make the difference between a rejected claim and a full refund or vehicle replacement.

Have questions about your situation? We offer free case evaluations, and we only get paid if we win. Let’s talk before the dealer tries to talk you out of your rights.

📞 855-965-3666 to get started.

Why Mediation Matters in Lemon Law – And What I Bring To The Table

After many years representing car manufacturers in lemon law matters, I transitioned into consumer representation to gain a broader perspective on these cases. With experience on both sides of the aisle, I’ve come to appreciate the value of resolving disputes efficiently and fairly. That insight led me to launch a lemon law mediation practice earlier this year—one focused on helping all parties reach practical, balanced solutions without the burden of prolonged litigation.

Why mediation?

Because not every case has to end in a courtroom battle.

Mediation is a powerful, cost-effective, and efficient tool that allows both sides to be heard—and more importantly, to find common ground. In lemon law cases, where emotions can run high and the details can get technical fast, mediation provides a structured environment for resolution without the delays, stress, and expense of trial.

What makes me different as a lemon law mediator?

1. I’ve sat on both sides of the table.
I spent years representing manufacturers, so I understand how they evaluate risk, what drives their settlement decisions, and how they view each case. Now, I advocate for consumers—and I know how frustrating and exhausting it is to deal with a car that just won’t work. This dual perspective allows me to cut through the noise and get to the heart of the dispute.

2. I speak the language.
Lemon law cases are highly technical. From repair orders to mileage offsets, there are details that can easily overwhelm someone who isn’t familiar with the territory. I know the legal and practical ins and outs—because I’ve litigated them from both angles.

3. I bring clarity and neutrality.
As a mediator, my role isn’t to take sides—it’s to help both sides understand the strengths and weaknesses of their case and explore resolution options that make sense. I am calm, focused, and solution-oriented. My goal is to move things forward, not let them stall.

4. I respect everyone’s time.
I understand the toll litigation takes, both financially and emotionally. Mediation offers a chance to resolve disputes quickly and confidentially. I approach every mediation with preparation, efficiency, and the intent to help the parties reach closure.

5. I conduct mediations via Zoom—with positivity and purpose.
Virtual mediations aren’t just convenient—they’re effective. I encourage parties to keep their cameras on so everyone can put a face to the person they’re talking to. It fosters human connection, keeps participants engaged, and often leads to more productive conversations. I also set the tone from the start with a warm, positive opening to help all parties feel comfortable and focused. When people feel seen and respected, they’re more open to resolution—and cases move more efficiently.

Whether you’re a plaintiff’s attorney, a defense attorney, or in-house counsel, I invite you to consider mediation—especially with a neutral who understands the nuances of lemon law.

If you’re interested in learning more about my mediation practice or scheduling a session, feel free to reach out.

Let’s resolve more cases. Faster. Fairer. Smarter.

California’s Lemon Law Discovery Process Undergoes Major Changes in 2025

The California Lemon Law has undergone significant changes, particularly in the area of discovery, which went into effect on January 1, 2025. Discovery is a critical phase in litigation where parties exchange information through written questions, document production, and depositions. Under previous law, discovery could begin soon after the lawsuit was served, allowing both sides to prepare for trial while engaging in settlement negotiations. The new law, however, imposes strict limitations on discovery during the initial months of a case.

Key Changes to the Discovery Process

The new law introduces several procedural hurdles that both plaintiffs and defendants must navigate, delaying traditional discovery until certain conditions are met.

1. Mandatory Initial Disclosures (Within 60 Days)

All parties are now required to exchange initial disclosures within 60 days of the defendant filing an answer or other responsive pleading. These disclosures include key documents and information, such as:

  • Vehicle sales or lease agreements
  • Repair records
  • Warranty details
  • Communications with the manufacturer regarding the defect
  • Information related to vehicle financing and market value

2. Limited Early Depositions (Within 120 Days)

Within 120 days of the defendant filing an answer, limited depositions may be conducted, restricted to:

  • The plaintiff
  • The defendant (or the most qualified representative if the defendant is a corporation)
  • Each deposition is capped at two hours and limited to predefined topics related to the vehicle’s service and warranty history.

3. Mandatory Mediation (Within 150 Days)

Before full discovery can commence, parties must schedule and participate in a mediation within 150 days of the defendant’s response. Both sides must attend, either in person or remotely, and costs are equally shared (though recoverable by the plaintiff as part of a settlement or judgment).

Discovery Stay Until Mediation Concludes

With limited exceptions, the new law places a hold on all additional discovery, such as broader depositions, interrogatories, and document requests, until mediation has been completed. If mediation fails to resolve the case, standard discovery procedures resume, including:

  • Additional depositions of the plaintiff and defendant
  • Expanded questioning on warranty policies and repair procedures
  • Access to manufacturer records related to defect evaluations and service bulletins

Consequences for Noncompliance

Failure to adhere to these new discovery rules comes with strict penalties, including:

  • Financial Sanctions: Attorneys may be fined between $1,500 and $2,500 for noncompliance with document production or deposition rules.
  • Dismissal of Claims: Plaintiffs who repeatedly fail to comply may see their case dismissed without prejudice, meaning they must restart the lawsuit process.
  • Evidentiary Sanctions Against Manufacturers: If manufacturers fail to comply, they may be barred from introducing key evidence at trial to dispute vehicle defects.

What This Means for Consumers and Manufacturers

These changes add new procedural steps for consumers seeking relief under the Lemon Law, making it essential to be well-prepared before filing a lawsuit. Plaintiffs must now gather extensive documentation in advance, and both sides must participate in mediation before engaging in full discovery.

For manufacturers, these changes provide a structured timeline to evaluate claims and potentially resolve disputes earlier in the process. However, the risk of evidentiary sanctions for noncompliance underscores the importance of timely and thorough document production.

Conclusion

California’s new Lemon Law discovery rules significantly alter how claims are litigated, placing a greater emphasis on early disclosure and mediation. While these changes aim to streamline the resolution process, they also introduce new challenges that consumers and manufacturers alike must navigate carefully. Anyone considering a Lemon Law claim should consult with an experienced attorney, like Lemon Law Attorney Sotera Anderson, to ensure compliance with the new legal framework and protect their rights under California law.

Announcing Lemon Law Mediation Services – Experience You Can Trust

I am excited to share that I am now offering mediation services with a specialized focus on lemon law cases. With 24 years of legal experience and over 15 years handling lemon law disputes, I bring a unique and comprehensive understanding of the challenges faced by both sides of these cases.

During my career, I have had the privilege of representing both car manufacturers and consumers, spending approximately half of my lemon law practice advocating for each. This dual perspective allows me to approach mediations with insight into the priorities and pain points on both sides, facilitating fair, efficient, and practical resolutions.

I understand the frustrations and complexities that often accompany lemon law disputes. My goal as a mediator is to provide a balanced and solutions-driven process that helps parties avoid the expense and uncertainty of litigation. By leveraging my deep knowledge and hands-on experience, I aim to guide cases toward mutually beneficial outcomes.

I offer remote mediation services via video conferencing, providing convenience and accessibility to attorneys and their clients.

If you are involved in a lemon law dispute and are seeking a mediator with in-depth experience and a balanced approach, I would be honored to assist. Please feel free to reach out to discuss how I can support you or to schedule a mediation session.

I look forward to the opportunity to collaborate with you.

Warmly,

Sotera

 

Schedule a Mediation: https://soteraanderson.com/mediation-calendar/