A manufacturer that reacquires a lemon must brand the title “Lemon Law Buyback,” put a decal on the car, and tell the next buyer in writing before a sale in California.
What the manufacturer has to do
Under Civil Code § 1793.23, when a manufacturer reacquires a vehicle it knew or should have known had to be replaced or refunded under the warranty laws, it must retitle the vehicle in its own name, ask the DMV to add the notation “Lemon Law Buyback” to the title, and attach a decal to the vehicle.
Before the vehicle is sold, leased, or transferred in California, the manufacturer must also give the next owner a written disclosure and get a signed acknowledgment.
If you are returning your vehicle in a buyback
The branding follows the vehicle, not you. Ask how the loan or lease will be paid off, who handles the title transfer and registration, and when your responsibility for the vehicle ends. Our buyback guide lists other questions to settle before signing.
If you are shopping for a used car
Check the title, look for the decal, and ask the seller directly whether the vehicle was ever reacquired by the manufacturer. Vehicle history reports and DMV records may also show a buyback. A buyback vehicle had a warranty problem that the manufacturer could not resolve, so ask what was repaired and what warranty, if any, comes with it.
If you think a buyback was not disclosed
Keep your purchase paperwork, the title, and anything that shows the vehicle’s history. Tell us when you bought it and what you were told. Whether you have a claim, and against whom, depends on the facts.