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Bill

SB 26

Civil actions: restitution for or replacement of a new motor vehicle.

2025-2026 Regular Session Introduced by Ash Kalra and 1 co-sponsor

California law now allows courts to order either vehicle refunds or replacements for new cars with persistent defects manufacturers cannot fix.

Chaptered by Secretary of State. Chapter 1, Statutes of 2025.
#civilactions #restitutionfororreplacementofanewmotorvehicle
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WeVote Research Nonpartisan
Bill Summary · SB 26

Legislative bill overview

SB 26 modifies California's "Lemon Law" by expanding civil remedies available to consumers who purchase defective new motor vehicles. The bill allows courts to order either restitution (refunds) or replacement vehicles as remedies when manufacturers fail to repair substantial defects within a reasonable number of repair attempts.

Why is this important

This change strengthens consumer protections by giving courts greater flexibility in providing meaningful relief—particularly important since some consumers may prefer a replacement vehicle over a refund. It addresses gaps where current law remedies may not fully compensate buyers for the inconvenience and financial loss of owning a persistently defective vehicle.

Potential points of contention

  • Manufacturer costs: Requiring replacement vehicles instead of refunds could increase financial burdens on manufacturers, potentially raising vehicle prices for all consumers
  • Definition clarity: The bill's effectiveness depends on how "substantial defect" and "reasonable number of repair attempts" are interpreted and applied by courts
  • Lender complications: Replacement remedies may create complications with vehicle financing arrangements, trade-ins, and title transfers that refunds avoid

Compiled from official sources — confirm details with the bill’s official record.

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