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A new 2025 Mercedes-AMG GLE 53 with a transfer case failure was repurchased under California lemon law after four dealer visits for drivetrain clunking and 49 days out of service. Three visits ended with the noise labeled “normal.” At the fourth, a dealer identified an internal failure and replaced multiple drivetrain components. Mercedes-Benz USA ultimately paid the owner $105,980.98 and paid $3,500 in attorney’s fees, without a lawsuit.
What the owner experienced
A Los Angeles–area owner bought the GLE 53 new in April 2025 from a Mercedes-Benz dealer in Van Nuys. Within months, a hollow thumping and clunking came from the rear and drivetrain whenever the SUV accelerated from a stop or slowed to one. It also rocked in park. On an all-wheel-drive performance SUV, a driveline problem can affect how power reaches the wheels.
Is your Mercedes or another vehicle repeatedly returning to the dealer with the same noise? Call (888) 536-6628 or request a free California lemon law case review.
The repair history
- December 18–24, 2025, at 1,637 miles. Hollow thumping from the right rear on acceleration and gentle stops. The dealer inspected the suspension and undercarriage, reported “no abnormality,” and replaced nothing.
- January 14–20, 2026, at 1,930 miles. The same noise, with rocking in park. The dealer compared the SUV with another vehicle and called the noise a “normal characteristic.” Nothing was replaced.
- February 3–7, 2026, at 2,054 miles. A second dealer used an electronic noise-detection tool, compared the SUV with another unit, and called it “normal operation.” Nothing was replaced.
- May 11–June 9, 2026, at 2,230 miles. A third dealer confirmed an internal mechanical failure. It replaced the front driveshaft, then the transfer case when the noise continued, and then the propeller shaft when a vibration developed. The replacement transfer case failed to start up twice before a third attempt succeeded.
Counting both drop-off and pickup dates for each visit, the SUV spent 49 days at dealers for the same problem, all within its first 2,300 miles.
Why “normal characteristic” didn't hold up
Three visits ended with dealers calling the noise normal; the fourth uncovered a mechanical failure. The first three still provided repair opportunities. Under Oregel v. American Isuzu Motors, Inc. (2001) 90 Cal.App.4th 1094, presenting a vehicle for repair can count as an opportunity even when the dealer cannot locate the cause or replace a part. See what it means when a repair record says no problem was found.
How California lemon law applied
The presumption was met two ways
California law presumes a manufacturer has had a reasonable number of repair opportunities when, within 18 months or 18,000 miles after delivery, the same defect has been presented for repair four or more times, or the vehicle has been out of service for repairs for more than 30 cumulative days (Civil Code § 1793.22(b)). This GLE 53 had four visits and 49 recorded days out of service within about 14 months and 2,300 miles. The four-visit route also requires direct notice to the manufacturer if the warranty materials properly disclose that requirement; the 30-day route does not.
These thresholds are presumptions, not prerequisites to requesting a case review. A serious defect can warrant review before either threshold is reached.
The remedy: repurchase
When a manufacturer cannot repair a new vehicle's substantial warranty defect after a reasonable number of opportunities, California law requires replacement or restitution, subject to a mileage-use offset based on driving before the first relevant repair attempt (Civil Code § 1793.2(d)(2)). A prevailing consumer may also recover attorney's fees under Civil Code § 1794(d).
Mercedes-Benz and the 2025 procedures
Mercedes-Benz USA opted into California's AB 1755/SB 26 lemon law procedures. For lawsuits seeking civil penalties, these procedures require a written repurchase-or-replacement demand at least 30 days before filing. Lawsuits seeking only restitution or replacement may proceed without that advance notice. Consumers can request a legal review before sending notice or deciding whether to sue. The California Department of Consumer Affairs manufacturer list confirms the opt-in.
How the case ended
The firm sent a repurchase demand to Mercedes-Benz USA on July 23, 2026. Mercedes agreed to repurchase the SUV, with $109,480.98 in total documented payments, including attorney's fees. The owner signed the release on October 1, 2026, and surrendered the vehicle on October 20, 2026. From demand to surrender took about three months, without a lawsuit.
From demand to surrender took about three months, without a lawsuit.
If your vehicle keeps coming back “normal”
- Record the noise on video, including the speed and driving situation when safe to do so.
- Make sure the repair order describes the symptom in your words, even if the dealer finds nothing.
- Consider another authorized dealer if the first cannot identify the issue. This owner's fourth visit, at a third dealer, found the failure.
- Request a case review without waiting for a dealer to acknowledge a defect or for another failed repair.
Frequently asked questions
The dealer says the noise is normal. Do I still have a case?
Possibly. A visit can count as a repair opportunity even when the dealer calls the noise normal. Here, the same complaint ultimately led to identification of a failed transfer case.
How long does a pre-lawsuit buyback take?
It varies. In this case, about three months passed between the written repurchase demand and the vehicle's surrender.
Does California lemon law apply to luxury SUVs?
Yes. Qualifying new vehicles are covered regardless of price; the vehicle's warranty, defect, and repair history matter.
Every case depends on its facts, and a past result does not guarantee a similar outcome. If your 2025 Mercedes-AMG GLE 53 or another vehicle has an unresolved defect, call (888) 536-6628 or request a free California lemon law case review.