Self-driving cars aren’t a futuristic concept anymore. They’re already here.
According to industry surveys, autonomous driving could create $300 billion to $400 billion in revenue by 2035. Companies like Tesla, General Motors (GM) and others are racing to design the next generation of smart, self-operating vehicles, and consumers are buying in.
But as the hype builds, so do the problems.
Owners have reported vehicles that brake for no reason, swerve into traffic, or ignore lane markings entirely. Some have seen the same problems return after multiple updates and repair visits. And unlike a leaky gasket or a faulty alternator, these glitches are buried deep in code: harder to diagnose, harder to fix, and much harder to prove.
Right now, the biggest question is: If a self-driving car keeps failing, does it still qualify as a lemon?
In this post, we’ll break down how lemon laws are being applied to autonomous vehicles (AVs) today, where the biggest gaps are, what changes may be coming to strengthen consumer protection, and why it’s worth speaking with a California lemon law attorney if you live in the Golden State.
First, What Are Lemon Laws?
Lemon laws are state-level consumer protection guidelines that help people who buy or lease defective vehicles. If your new car has serious problems that the dealer can’t fix within a reasonable number of attempts, you may be entitled to a refund, replacement, or cash compensation.
A vehicle can qualify under California lemon law if it meets all of the following:
- The defect is covered by the original manufacturer’s warranty when the defect was reported
- The issue significantly impacts the car’s use, value, or safety
- The dealer or manufacturer has made a reasonable number of repair attempts
- At least two attempts for a serious safety issue
- Or four or more for a non-safety issue
- The car has been in the shop for 30 days or more (total, not necessarily consecutive)
- The defect wasn’t caused by misuse, accidents, or poor maintenance
Most lemon law rules hinge on the vehicle having a clear, persistent defect. But self-driving cars flip that idea on its head.
What Counts as a Defect in a Self-Driving Car?
In a traditional car, a defect may mean worn brakes or a faulty transmission. In a self-driving car, the trouble often starts in the software or sensors, such as:
- Lidar and radar sensors that misread objects
- AI systems that make poor driving decisions
- Over-the-air (OTA) updates that introduce bugs instead of fixing them
- Autonomous features like lane-keeping or emergency braking that misfire
- Communication systems between cars that don’t sync properly
If any of these break down, the fallout can equal (or exceed) the damage from a blown alternator. For instance, a sensor misreading a shadow could cause your car to slam the brakes at 70 mph.
These aren’t hypotheticals. Tesla’s Autopilot has been involved in multiple fatal crashes.
Likewise, GM’s Cruise pulled its entire driverless fleet after safety issues. Software recalls are now just as common as mechanical ones.
But whether these failures qualify under lemon law is still a gray area.
Lemon Law Loopholes for AVs: Where the System Falls Short
Most states wrote their lemon laws long before cars could drive themselves. The gap leaves AV owners with hurdles they wouldn’t face in a normal warranty fight.
1) Software Glitches Don’t Always Count as Defects
When a vehicle glitches after a software update, manufacturers may claim it’s not a true defect: just something being resolved through a patch.
But under current lemon law rules, a defect must affect the vehicle’s use, value, or safety. That’s harder to prove when the problem is intermittent, doesn’t trigger a fault code, or can’t be replicated at the dealership.
2) Partial Autonomy Shifts the Blame
Most AVs aren’t fully autonomous yet. They fall under Level 2 or Level 3 automation, where the driver is still expected to stay alert and take over if needed.
Manufacturers can use this gray area to shift blame. If something goes wrong, they might argue the driver should have intervened, regardless of how advanced the system is.
3) OTA Updates Can Restart the Clock
Over-the-air (OTA) updates are convenient, but in some states — including California — these updates can reset the lemon law repair timeline. If your car fails again after an update, the manufacturer might treat it as a new issue and start the clock over.
What Buyers Need to Know Before Purchasing an Autonomous Vehicle
We all want to believe that something as advanced as a self-driving car will be flawless the moment it leaves the lot. Unfortunately, that’s not the case. Autonomous vehicles can have just as many quality issues as traditional cars; sometimes even more.
Proving a defect under lemon law in California isn’t as straightforward as pointing to a faulty engine or broken axle. You’ll need to be extra thorough and proactive to build a valid claim.
Here are a few steps to take.
1) Track Everything in Detail
When it comes to AVs, proper documentation is non-negotiable. Create a paper trail that shows:
- When the issue first occurred
- How often it happens
- What specific driving conditions trigger it
- What error messages, warning lights, or alerts appear
- Any video footage, if the malfunction can be captured
Don’t rely on dealership service logs alone. Keep your own notes and save every communication. Because AV-related glitches can be intermittent, it’s your job to prove the issue is repeatable and hasn’t been resolved.
2) Verify Warranty Coverage for Tech Systems
Not all vehicle warranties clearly cover autonomous features. Ask for documentation that outlines how Advanced Driver Assistance Systems (ADAS), sensors, and software systems are treated under warranty. If these aren’t covered or are listed under limited terms, it could affect your ability to file a claim later.
3) Avoid Rebooting or Resetting Without a Record
Many AV owners try to fix problems themselves by rebooting the system. If you do this, make sure to document it. Otherwise, the manufacturer can claim they were never given a chance to fix the issue.
4) Always Contact a Lemon Law Attorney
You don’t need a lawyer to file a case, but you’ll certainly want one. Manufacturers are known for offering low settlements or dragging out the process when consumers file alone. Keep in mind, these are worldwide corporations with high-powered legal defense teams. Negotiating a settlement without a skilled attorney can be extremely difficult.
With AVs, claims are more complicated. A California lemon law attorney can help you prove how a software or sensor issue affects your car’s function and fight for the compensation you’re owed.
Most California lemon law attorneys offer free consultations and only get paid if you win. There’s no downside to getting legal advice early. Additionally, these attorneys commonly work on a contingency fee – and their costs are covered by the manufacturer as part of the official lemon buyback.
How California Is Addressing Lemon Law Claims for Autonomous Vehicles
California’s lemon laws are some of the most comprehensive and consumer-friendly in the country. It already applies to electric vehicles and software-related defects, as long as the issue affects how the vehicle functions.
The law doesn’t specifically mention autonomous vehicles, but attorneys across the state are actively filing lemon law claims tied to failed Advanced Driver Assistance Systems (ADAS), malfunctioning lane-keeping systems, faulty sensors, and recurring problems with self-driving modes.
In short, California’s lemon law is already being used to hold manufacturers accountable for tech failures. We’ll likely see more targeted updates added to the law over time.
What’s Next: Updating Lemon Laws for a Driverless Future
The push toward autonomous vehicles is forcing lawmakers to rethink how consumer protection works in the auto industry.
We’re not just dealing with broken parts anymore. We’re tackling machine learning, 3D sensors, and AI systems that act on their own, sometimes unpredictably.
For lemon laws to stay relevant, they’ll need to:
- Recognize software and sensor failures as legitimate defects
- Prevent manufacturers from dodging responsibility by blaming drivers
- Define repair timelines that include OTA updates and intermittent issues
- Extend protection to cars with partial automation (Level 2–3), not just full self-driving models
Lemon protections must keep pace with technology. Consumers shouldn’t have to sacrifice safety or their rights for the sake of progress.
Don’t Let the Tech Fool You
Buying a car used to mean trusting the engine. Now, you’re putting your faith in software and companies that may not always get it right.
Self-driving cars promise a smarter, safer future, but they’re not immune to real-world problems. When the tech fails, the consequences can be just as frustrating (and dangerous) as any mechanical issue.
Proving a defect under California lemon law is harder with autonomous features, but it’s not out of reach. A competent CA lemon law attorney can help you build a strong case and push for the compensation you deserve.