So you think your vehicle may qualify as a lemon, but what about that hefty loan you have to make monthly payments on? Although you may plan on discarding the vehicle, you must make monthly payments toward the car you purchased- whether you decide to pursue a lemon law claim or not. Any vehicle owner that stops making payments risks going into default, regardless of the car’s condition. Meaning, the vehicle owner may face legal actions and repossession of their car. Thus devaluing the owner’s credit report and potential lemon law claim. This is a good rule of thumb for both leased and purchased cars.
The same applies for leased cars. The lessee is obligated to make payments on the car, even if it is a lemon. For example, the lessee will continue to make car payments while they pursue a lemon law claim in court…. If not, then defaulting on your lease will cause your credit score to drop and put your rights under the lemon law at risk.
Continuing to pay for a car with no sign of improvement in the near future may seem counterproductive. However, once a lemon law buyback occurs you are reimbursed for your monthly payments, registration fees, insurance payments, etc. So as you may have guessed, paying registration fees and insurance payments are also critical to protecting your rights under the California lemon law.