California Supreme Court: a used car with factory warranty left isn’t a “new motor vehicle” for a buyback

What the court decided

In Rodriguez v. FCA US, LLC (case S274625, decided October 31, 2024), the buyers had purchased a two-year-old truck with about 55,000 miles from a used-car dealer. The factory powertrain warranty was still in effect, and the engine problems continued after several repair visits.

The Song-Beverly Act’s buyback-or-replace remedy applies to a “new motor vehicle,” which includes “other motor vehicle sold with a manufacturer’s new car warranty.” The court ruled unanimously that this phrase covers only a vehicle whose new car warranty is issued with the sale. A used car bought with the rest of an earlier owner’s factory warranty does not qualify on that basis.

What it means for used-car buyers

• A remaining factory warranty on a used car does not, by itself, open the buyback-or-replace remedy.
• The manufacturer’s warranty still covers repairs for as long as it lasts.
• If the dealer that sold you the used car gave its own written warranty, the Act gives that dealer obligations similar to a manufacturer’s.
• The court said it is up to the Legislature whether to change the definition of “new motor vehicle.”

If you bought a used car that keeps failing

Keep every repair order and the paperwork from your purchase, including any written warranty from the dealer. Whether you have a claim depends on who issued the warranty, when, and what was repaired. Our used-car guide goes through the questions.