A lemon law buyback is when the car company buys back the vehicle by reimbursing you the down payment, all monthly payments made, the most recent year’s registration expense, and any other incidental or consequential damages related to the vehicle’s being a lemon.
A lemon law buyback also requires that the car company pay off the loan if there is one and take back the vehicle. The car company is allowed to deduct a mileage offset from the amount they pay you, and this is calculated using the miles driven between the time of purchase and the first documented service visit for the defect that makes the car a lemon. The offset formula is calculated by taking the miles on the vehicle at the first repair attempt and dividing that by 120,000 (the useful life of a vehicle according to California’s legislature), and then taking the result of that equation and multiplying it by the purchase price. This is the mileage offset amount. In some cases car companies may also take offsets for accessories added at the time of purchase. In addition, the car company has to pay your attorney’s fees and costs, meaning you don’t have to.
If you think your vehicle may be a lemon or have a question about how your buyback should be calculated, please contact our attorneys for a free evaluation.
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