With the cost of buying, insuring and maintaining a new vehicle going up every year consumers are always trying to find a way to save a dollar. In California and other highly taxed states, the price of sales taxes adds considerably to the cost of buying a new vehicle, so many consumers buy the vehicle out of state to save on their purchase.

A recent court ruling by the California Supreme Court states that the California lemon law applies only to vehicles purchased within the state. Californians, who enjoy one of the most powerful lemon laws in the United States, but who buy their vehicles out of state may find out that they have no protection under California law if they purchase a lemon. Worse, they may have no protection under any law. Most state lemon laws require that the vehicles be purchased in that state. In addition, most lemon laws require that anyone filing a claim under the law must also be a resident of that state. This may leave buyers who purchase a vehicle and drive it to another state out of luck. Attorneys for the state of California called the ruling fair, pointing out that enforcing the statute costs money, and that it doesn’t seem reasonable for the law to represent buyers who don’t pay the sales taxes that support it.

Vehicle warranties will still apply and if the problems with the vehicle can be repaired under warranty then they will be covered. They are not, however, entitled to replacement or refund should the repairs be unable to permanently resolve the problem.