California Lemon Law: Dealing with Failure to Disclose Title Brands
Title brands are one of the few things a dealer—meaning the dealership, which has specific legal obligations to disclose certain information—is required to disclose in California. The most common title brands are Salvage/Total Loss; True Mileage Unknown (Odometer Rollback); Junk; Lemon Law Buyback; Flood/Water Damage and Grey Market.
If a vehicle has a title brand, the dealer is required to put a big red warning label on the vehicle and must give you an NMVTIS (National Motor Vehicle Title Information System) report before you purchase the vehicle. If the dealer failed to properly disclose a title brand to you before you purchased a vehicle, , in California can help get your money back. Car buyers can file a claim against the dealership if these title brands are not disclosed, ensuring their rights are protected under California law.
Salvage/Total Loss
A Salvage brand occurs when an insurance company decides the cost to repair a vehicle or car after an accident is high enough that the insurance company would rather deem the vehicle a salvage or total loss than pay to repair the vehicle. The fact that a vehicle has been in a serious accident, even one that results in structural damage (also known as frame damage), does not mean the vehicle is a salvage or total loss vehicle.
California does not use the Junk or Flood/Water Damage title brands. If the vehicle was Junk or Flood/Water Damage in another State, it will be deemed Salvage in California. Salvage vehicles should be regarded as dangerous until your own mechanic and body shop technician have inspected the vehicle.
True Mileage Unknown (Odometer Rollback)
True Mileage Unknown (“TMU”) and Odometer Rollback designations occur when the odometer on the vehicle is not accurate. This can be the result of someone intentionally changing the odometer to commit fraud, mechanical defects that either cause the odometer to show an incorrect reading or the odometer is reset when specific parts are replaced; or if someone replaces the original tires/wheels with a larger or smaller size and fails to adjust the computer settings to the new size tires (this will also result in an inaccurate speedometer until the settings are corrected). However it happens, a TMU designation is a bad thing.
Any warranties and service contracts based on mileage will be voided by a TMU title brand. TMU vehicles often have 50,000 – 200,000 more miles than shown on the odometer, which leads to a lot of unexpected mechanical problems. This is a common risk when purchasing a used car.
Junk Title Brand
A Junk title brand means the vehicle has been dismantled and used for parts. California does not use the Junk title brand. Instead, vehicles that were Junk in another State will be deemed Salvage in California.
It is important to note that junk title brands may not apply to certain types of vehicles, such as a motor home, which may have different legal considerations.
Lemon Law Buyback
Many states, including California, require the Lemon Law Buyback title brand when a manufacturer repurchases a vehicle from a consumer under the state’s Lemon Law. In California, the Lemon Law Buyback brand is required only when a vehicle is repurchased under Civil Code § 1793.2(d)(2) (failure to repair under warranty after a reasonable number of attempts). In theory, the manufacturer will have fixed the defects before reselling the vehicle, but that is not always the case.
If you are considering filing a lemon law claim in California, it is important to know that California’s lemon law covers cars, trucks, new cars, new vehicles, used vehicles, certified pre-owned vehicles, and leased vehicles that have a manufacturer’s warranty. The law applies when a vehicle meets the criteria of having defects that substantially impair its use, value, or safety, and the manufacturer or dealership has made a reasonable number of repair attempts or multiple attempts to fix the issue. If the defect cannot be repaired, consumers—including car buyers and victims of defective vehicles—may be entitled to a refund of the purchase price or a replacement vehicle. California lemon law covers both purchasing and lease situations, and manufacturers are responsible for honoring the car warranty or vehicle warranty. Lemon law cases can be complex, so having an experienced attorney or lemon law attorney from a reputable law firm or law offices is crucial to guide you through the whole process, represent you in court or courts if needed, and help you achieve a great settlement. Many top notch law firms and lawyers offer a free case evaluation and serve clients throughout Southern California. Consumer attorneys play a key role in protecting the rights of consumers and ensuring that victims of defective vehicles get a working vehicle under the state’s lemon law and other relevant laws.
Flood And Water Damage
Vehicles that have sustained water damage receive the Flood/Water Damage brand in some states. California does not use the Flood or Water Damage title brands. California’s title brand laws do not cover water damage specifically, but such vehicles may still be deemed Salvage. Instead, vehicles that were Flood or Water Damage in another State will be deemed Salvage in California.
Water damage can cause mold or mildew, and damage to the engine, and are known to cause significant electrical/computer problems.
“Grey Market” Vehicle
A Grey Market vehicle is one that was originally built for a country other than the United States. Unlike the other title brands, Grey Market vehicles are not broken or defective. Grey Market vehicles were designed to comply with another country’s regulations and may need to be converted or modified to comply with California law, including smog standards.
Another significant issue is that manufacturer warranties are usually country-specific, which means the manufacturer will not perform warranty repairs on a Grey Market vehicle. Fortunately, California requires dealers to provide an equivalent warranty or vehicle warranty when selling a grey market vehicle.
Learn More About How Auto Law Firm, PC, Can Help You
At Auto Law Firm, PC, attorney Michael Klitzke and the experienced legal team can help clients throughout California, including in San Diego and Los Angeles file claims and get their money back. To schedule a free consultation and learn more, call 619-984-1239 or fill out an online contact form.