Per California Vehicle Code Section 25102 VC, LED lights mounted in the wheel well are illegal. This section specifies:
"In addition to the lamps otherwise permitted by this chapter, any motor vehicle may be equipped with lamps on the sides thereof, visible from the side of the vehicle but not from the front or rear thereof, which lamps, together with mountings or receptacles, shall be set into depressions or recesses in the body of the vehicle and shall not protrude beyond or outside the body of the vehicle. The light source in each of the lamps shall not exceed two candlepower and shall emit diffused light of any color, except that the color red is permitted only on authorized emergency vehicles."
As for colored interior lights, they are not illegal, however, per California Vehicle Code Section 24003, there are certain restrictions, shown here in the specification of the section:
"No vehicle shall be equipped with any lamp or illuminating device not required or permitted in this code, nor shall any lamp or illuminating device be mounted inside a vehicle unless specifically permitted by this code. This section does not apply to:
(a)Interior lamps such as door, brake and instrument lamps, and map, dash, and dome lamps designed and used for the purpose of illuminating the interior of the vehicle.
(b)Lamps needed in the operation or utilization of those vehicles mentioned in Section 25801, or vehicles used by public utilities in the repair or maintenance of their service, or used only for the illumination of cargo space of a vehicle while loading or unloading.
(c)Warning lamps mounted inside an authorized emergency vehicle and meeting requirements established by the department."
We hope this answers your question, and we apologize for the delay in answering it!