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Lemon Law for Leased Vehicles in Los Angeles

Reviewed by Jacob Shayesteh, Esq., founding attorney · Updated October 2026

Leasing is a common way to drive in Los Angeles, especially for newer luxury cars and EVs whose technology changes quickly. If your leased vehicle keeps returning to the dealer for the same problem, California lemon law protects you the same way it protects a buyer. You do not have to wait until the lease ends, and you should not simply turn the car in and walk away.

Leases are covered under California lemon law

Two parts of the Song-Beverly Act make this clear:

Civil Code section 1795.4(b) gives a lessee the same rights against the manufacturer as a buyer.
Civil Code section 1793.2(d)(2)(D) says a lessee of a new motor vehicle is a “buyer” for the refund-or-replace remedy.

So if your leased car has a warranty defect that substantially impairs its use, value, or safety, and the manufacturer cannot fix it after a reasonable number of attempts, you may be entitled to a lease buyback or a replacement. The same 18-month/18,000-mile presumption in section 1793.22(b) applies: 4 or more repairs for the same problem, 2 or more for a serious safety defect, or more than 30 days out of service. Read the short version at does California lemon law cover leased vehicles.

A leased demonstrator sold with a manufacturer’s new car warranty can also qualify. Leases of ordinary used cars face the same limits as used car purchases after Rodriguez v. FCA US, covered in our used and CPO car guide.

How a lease buyback works

In a lease buyback, three parties are involved: you, the manufacturer, and the leasing company (often the manufacturer’s own finance arm). The manufacturer generally:

Refunds to you the money you paid under the lease, minus the mileage offset.
Pays the leasing company what is needed to end the lease.
Takes the vehicle back.

Once it is done, you owe nothing more on the lease and you walk away from the vehicle.

What is typically refunded

Restitution under section 1793.2(d)(2)(B) includes the amount paid or payable plus collateral charges and incidental damages. In a lease, that usually means:

Amount due at signing. Your down payment or capitalized cost reduction, first month’s payment, and fees paid at signing.
Monthly payments you have made.
Collateral charges such as sales or use tax, license, registration, and other official fees.
Incidental damages such as reasonable towing, rental car, and repair costs you actually paid.
Trade-in credit you applied to the lease, depending on how the contract was written. Negative equity rolled in from a prior car is handled differently, and we review it case by case.

Items generally excluded include nonmanufacturer add-ons installed by a dealer or by you, such as aftermarket tint or wheels from a third party.

The mileage offset on a lease

The manufacturer may reduce the refund by an amount for your use of the vehicle. Under section 1793.2(d)(2)(C), it is the vehicle’s price multiplied by the miles driven before you first took it in for the problem, divided by 120,000. On a lease, the “price” used for this math is often debated. We review your lease to see which figure applies.

In our experience, the offset is measured from the first visit where you reported the problem, even if the dealer could not verify it that day, once the defect is later confirmed. That is one more reason to bring the car in early. Our California lemon law calculator can give you a rough idea, and our page on how the mileage offset is calculated explains it further.

The lease payoff

The manufacturer pays the leasing company directly. The settlement paperwork should spell out that the lease is terminated and that you are released from remaining payments. Ask us to confirm how the following are handled before you sign:

Excess mileage charges. LA commutes add miles quickly, and you do not want a surprise bill.
Excess wear and tear charges.
Disposition or turn-in fees.
Your security deposit, if you paid one.

Keep making your monthly lease payments on time until the payoff is confirmed. Missed payments can create credit issues and complicate the paperwork.

Replacement and cash-and-keep options

A manufacturer may offer a replacement vehicle instead of a buyback. Under section 1793.2(d)(2), you may choose restitution instead of a replacement. Some lessees prefer a cash-and-keep settlement, especially if the defect was finally fixed and the lease ends soon. We walk through the tradeoffs with you.

End-of-lease timing: do not turn it in first

This is where lessees make the most costly mistakes. If your lease is ending soon and the car has a history of repairs, call us before you:

Return the car to the dealer at lease end.
Buy out the lease.
Trade it in on a new lease.

Here is why. For manufacturers that opted into the AB 1755 procedures, Code of Civil Procedure section 871.24 requires you to have possession of the vehicle when your attorney sends the pre-suit demand. A lawsuit filed without that demand also requires possession at filing and cannot seek civil penalties. Turning in the car can limit your options. Learn more about what changed with AB 1755.

Depending on your timing, options may include a short lease extension from the leasing company while the claim moves forward. We help you choose the path that protects the claim.

A hypothetical example

Say you lease a new SUV from a dealer in the San Fernando Valley and commute on the 101 every day. Within the first year, the backup camera goes black and the screen reboots while driving. The dealer updates the software three times and replaces a module once. Each visit is on a repair order, and the problem keeps coming back.

In our experience, a software update can count as a repair attempt. If the manufacturer agrees to a buyback, it would refund what you paid under the lease, minus the offset tied to your mileage at the first camera visit, and pay the leasing company to close out the lease. This example is for illustration only. Your result depends on your facts.

What to keep for a lease claim

The full lease agreement, including the itemization of amount due at signing.
Every repair order, with dates in and out and mileage.
Monthly statements from the leasing company.
Recall notices. You can check your VIN for open recalls any time.
Rental car, rideshare, and towing receipts.

If the dealer is keeping your car for weeks or says it cannot find the problem, see what to do when your LA dealer will not fix your car. EV lessees should also read our Los Angeles EV lemon law guide.

What it costs

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. Prior results do not guarantee a similar outcome.

See our Los Angeles lemon law attorney page or our California lemon law attorney home page to learn more.

More Los Angeles lemon law guides

Get a free case review

If your car, truck, or SUV keeps going back to the dealer, call us for a free case review at 877-536-6620. Our office is at 10850 Wilshire Blvd, Suite 1010, in Westwood, and we help drivers across Los Angeles County in English and Spanish. 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.

Frequently Asked Questions

Does California lemon law apply to leased cars?

Yes. Civil Code sections 1795.4 and 1793.2(d)(2)(D) give a lessee of a new motor vehicle the same rights as a buyer, including a buyback or replacement.

What is refunded in a lease buyback?

Generally the amount you paid at signing, your monthly payments, collateral charges like taxes and registration, and incidental costs, minus a mileage offset. The manufacturer pays off the lease directly.

Will I owe excess mileage charges after a lease buyback?

The settlement should address this. We review the paperwork to confirm the lease is terminated and how mileage, wear, and turn-in fees are handled.

Should I keep paying my lease during the claim?

Yes. Keep paying on time until the payoff is confirmed so your credit is protected and the paperwork goes smoothly.

Attorney advertising. Prior results do not guarantee a similar outcome.