What Does Certified Pre-Owned Mean After Rodriguez v. FCA US?

In Rodriguez v. FCA US, LLC (2024) 17 Cal.5th 189, the California Supreme Court held that a used car does not count as a “new motor vehicle” under the lemon law just because some of the original factory warranty is left. The car qualifies under that part of the law only if a manufacturer’s new car warranty was issued with the sale. The decision did not mention certified pre-owned (CPO) programs by name. A CPO car is not automatically in or out. It depends on who issued what warranty, and when. In our cases, we continue to review CPO, demonstrator, and dealer-owned vehicles.

What the court actually decided

The buyers in Rodriguez bought a two-year-old truck with about 55,000 miles from a used car dealer that was not affiliated with the manufacturer. The bumper-to-bumper warranty had expired, but the manufacturer’s powertrain warranty was still in effect. After repeated engine repairs, they sued the manufacturer under the lemon law’s refund-or-replace rule, Civil Code 1793.2(d)(2).

That rule applies to a “new motor vehicle,” which Civil Code 1793.22(e)(2) defines to include “a dealer-owned vehicle and a ‘demonstrator’ or other motor vehicle sold with a manufacturer’s new car warranty.” The buyers argued their truck was a “motor vehicle sold with a manufacturer’s new car warranty” because warranty coverage remained.

The Supreme Court disagreed. It held that the phrase means “a vehicle for which a manufacturer’s new car warranty is issued with the sale.” A car that merely still has time left on a warranty issued when it was first sold new does not fit. The court affirmed the ruling for the manufacturer and disapproved an older appellate case, Jensen v. BMW, to the extent it said otherwise.

Why the court read it that way

The court pointed to the structure of the Song-Beverly Act, which treats new and used goods differently. Used goods are covered by a separate section, Civil Code 1795.5, which places express warranty obligations on the dealer or distributor that gives a warranty on a used product at the time of sale, rather than on the original manufacturer. The court also noted that dealer-owned vehicles and demonstrators are named examples of cars that are not truly new but are sold like new cars with a full new car warranty. The court said the Legislature remains free to change the definition.

What this means for different types of vehicles

Ordinary used cars with leftover factory warranty

Generally, these no longer qualify for the lemon law’s refund-or-replace remedy against the manufacturer. In our experience, an ordinary used car bought from a used car lot, without a CPO program or a newly issued warranty, usually does not qualify for a buyback after Rodriguez. The opinion notes the manufacturer’s argument that such owners may still have other remedies, such as under the California Commercial Code or the federal Magnuson-Moss Warranty Act, but the court expressly did not decide those policy arguments. Other claims, such as against the selling dealer, depend on the facts.

Demonstrators and dealer-owned vehicles

These are named in the statute. A demonstrator is defined as a vehicle assigned by a dealer to show the qualities of that model. If it was sold with a manufacturer’s new car warranty, it remains within the definition of “new motor vehicle.”

Certified pre-owned vehicles

Rodriguez did not address CPO programs. CPO programs vary by manufacturer. Many are sold through the brand’s franchised dealers and come with a certified warranty issued at the time of the CPO sale, often in addition to any remaining factory coverage. Questions that matter for a CPO car include:

• Who issued the CPO warranty: the manufacturer, the dealer, or a third-party administrator?
• Was a warranty issued with your sale, and what does it cover?
• Did you buy from a franchised dealer of that brand?
• What do your contract and CPO paperwork say?

Even when the manufacturer’s refund-or-replace rule does not apply, Civil Code 1795.5 can give a used car buyer warranty rights against the seller that gave an express warranty at the time of sale, subject to exceptions in that section. In our cases, the firm takes CPO, demo, and dealer vehicles, and we look closely at the warranty documents for each one. Read our page on whether California lemon law covers used cars for more.

Leased vehicles

New leases are covered. Civil Code 1795.4 gives lessees the same rights as buyers, and 1793.2(d)(2)(D) confirms a lessee of a new motor vehicle counts as a buyer. See lemon law for a leased car you still owe on.

How to check where your car stands

1. Find your sales contract. Look for whether the car was sold as new, as a demonstrator, as a dealer or loaner vehicle, or as used.
2. Find your warranty paperwork. For a CPO car, locate the CPO certificate or warranty booklet and note who issued it.
3. Check the odometer at sale. A car with very low miles and a “demo” note on the contract may be treated differently from a typical used car.
4. Collect repair orders. Every visit, with dates and mileage.
5. Check for recalls. Use our VIN recall lookup.
6. Talk to a lawyer before you assume you have no case. Small details in the paperwork can matter.

Common questions after Rodriguez

Does the decision affect new car buyers?

No. If you bought or leased a new car, the lemon law applies the same way it did before. The presumption in Civil Code 1793.22 still applies within the first 18 months or 18,000 miles: four or more repairs for the same problem, two or more for a defect likely to cause death or serious injury, or more than 30 cumulative days out of service.

What if I bought a used car from the brand’s own dealer?

Buying from a franchised dealer does not by itself make a used car “new” under the statute. What matters is the warranty issued with the sale and how the car was sold. That is why the CPO paperwork matters.

Did AB 1755 change any of this?

AB 1755 (2024) added new procedures for lemon law cases against manufacturers that opt in, starting in 2025. It did not change the Rodriguez holding. See what changed with AB 1755.

Next steps

If your CPO, demo, or dealer car keeps going back to the shop, gather your contract and warranty papers and estimate a buyback with our California lemon law calculator. If the dealer keeps saying the car is fine, read what to do when the dealer says it is operating as designed. A California lemon law attorney or Los Angeles lemon law attorney at our firm can review your documents. You pay nothing, win or lose. We are paid only if you win, and the manufacturer pays our fees, including in settlements. If a case is lost, our firm covers the costs.

Call 877-536-6620 for a free case review, in English or Spanish.

Frequently Asked Questions

What did Rodriguez v. FCA US hold?

The California Supreme Court held in 2024 that a used car with an unexpired factory warranty is not a new motor vehicle under the lemon law unless a manufacturer's new car warranty was issued with the sale.

Does Rodriguez apply to certified pre-owned cars?

The opinion did not address CPO programs by name. Whether a CPO car qualifies depends on the warranty issued with your sale and who issued it.

Are demonstrators still covered by the lemon law?

Yes. Civil Code 1793.22(e)(2) names dealer-owned vehicles and demonstrators sold with a manufacturer's new car warranty as new motor vehicles.

Does Rodriguez affect new car or lease buyers?

No. New vehicles and new leases are covered as before.

What if my used car has no CPO warranty?

It generally does not qualify for a manufacturer buyback after Rodriguez, though other claims may exist depending on the facts and the warranty given at sale.

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