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How to Calculate Lemon Law Buyback


A car that allows you to move around to conduct your day-to-day activities easily. However, if defective, it will mean more repair expenses, ruin your comfort and risk your life. You can take such a car for repair, but sometimes these may not work. Such a car is called a lemon, and you can seek compensation through a lemon law buyback.

How Long Does a Lemon Law Case Take?

What is lemon law buyback?

A buyback is the final result of a lemon law claim, and it seeks to indemnify the buyer. A lemon law buyback is when the manufacturer voluntarily or forcefully reacquires the lemon. The car has to meet all the warranty defects and other requirements.

How is lemon law buyback calculated?

The amount you’ll get varies depending on various factors. Though there are multiple ways to calculate it, a unique calculator for lemon law is the most effective.

A lemon buyback can result in a full refund of funds spent towards the purchase/lease of the vehicle. That includes down payments, monthly payments, registration, and reimbursement for incidental expenses like rental car and towing costs. You will also receive all outstanding balances on the loans related to the vehicle.

The main exception relating to lemon law buyback is the “usage fee.”A usage fee is an amount the manufacturer is entitled to deduct based on the period the vehicle was operating without issues and the value of miles based on the car before the first repair. Further, you may be responsible for additional taxes.

What does a buyback get you?

You can get a replacement vehicle and surrender the lemon. A replacement allows you to start over with a new vehicle without worrying about issues or repair expenses. You’ll get an identical car to the lemon car without lemon flaws. However, millage deductions can apply depending on the state rules.

Alternatively, you can get a refund for your lemon car. You’ll receive all the money you put into the vehicle minus the usage fee and other applicable deductions.

Mistakes to avoid during the buyback process


If your car qualifies for lemon law, the manufacturer representative might try to convince you to do arbitration. They will trick you into not hiring a lemon law attorney or using the legal system. They will tell you that arbitration is a quick and easy alternative, but you won’t get the best and fair amount.

Taking the bait

In arbitration, you’ll face a panel of arbitrators sponsored by the dealership. You’ll be on your own and can match their skills, meaning you will be short-changed.

Signing away your rights

Your manufacturer can get you to sign documents that appear to be a warranty extension or reimbursement. Or a release agreement, meaning you have surrendered your rights to file a lemon law claim for a buyback. So don’t sign anything without your lemon law lawyer.

Getting repair from a third party

Taking your car to your trusted mechanic might seem like a no-brainer, but the idea is a mistake. It can void your warranty and invalidate your lemon law buyback.

Final thoughts

If your car has issues, a warranty allows you to take it for fixing to the manufacturer. If the repair fails, your vehicle qualifies for a lemon law buyback. The above information will help you know how a buyback is calculated and other useful insights.