If you’ve found yourself stuck with a faulty vehicle that just won’t seem to stay fixed, you may have a “lemon.” Fortunately, California’s Lemon Law protects consumers like you, and you might be eligible for a buyback. But how exactly is the buyback amount calculated? Let’s break it down in an easy-to-understand way!
The Lemon Law Buyback Formula
The California Lemon Law provides a specific formula for determining how much money you’re entitled to if your vehicle qualifies for a buyback. Here’s the formula:
(Total amount paid or payable) – (Mileage offset) = Lemon Law Buyback
The mileage offset, also called a “usage fee,” accounts for how much of the vehicle’s expected lifespan was used before the defect arose. To calculate it:
(Vehicle purchase price) x (Mileage at first repair) / 120,000 miles = Mileage Offset
That’s the basic formula, but let’s see how it works in real-world situations.
How the Lemon Law Buyback Formula Works
This formula is based on a simple principle: The manufacturer is responsible for compensating you for the portion of the car’s lifespan that was affected by the defect. Here’s how it’s calculated:
- Total Amount Paid or Payable: This includes the vehicle’s purchase price, transportation charges, manufacturer-installed options, taxes, and registration fees.
- Mileage Offset: The manufacturer deducts a portion of the car’s value based on how far it got through its expected 120,000-mile lifespan before the defect appeared.
Let’s see some examples.
California Lemon Law Buyback Formula Examples
Example 1: Fully Paid Vehicle
- Total Amount Paid: $50,000
- Mileage at First Repair: 20,000 miles
Mileage Offset Calculation: $50,000 x (20,000 / 120,000) = $8,333
Buyback Amount: $50,000 – $8,333 = $41,667
Example 2: Financed Vehicle with Monthly Payments
- Total Amount Payable: $50,000
- Mileage at First Repair: 30,000 miles
- Down Payment: $10,000
- Monthly Payment: $500
- Number of Payments Made: 12
Total Paid So Far: (12 x $500) + $10,000 = $16,000
Mileage Offset Calculation: $50,000 x (30,000 / 120,000) = $12,500
Buyback Amount: $16,000 – $12,500 = $3,500 (plus remaining loan balance covered by the manufacturer)
How Loans and Leases Affect Lemon Law Buybacks
If you financed or leased your vehicle, don’t worry! The manufacturer must still cover what you’ve paid so far and pay off the remaining balance. You won’t be left with unpaid car payments for a lemon.
Additional Compensation You May Receive
Aside from the buyback amount, you may also receive compensation for:
- Incidental Costs: Towing fees, rental car expenses, and repair costs.
- Civil Penalties: If the manufacturer knowingly sold a defective vehicle, they may owe you extra damages.
- Attorney Fees: Your lawyer’s fees are covered by the manufacturer, so pursuing a claim won’t cost you out of pocket.
How to Maximize Your California Lemon Law Buyback
Want to get the most out of your Lemon Law claim? Follow these steps:
- Gather Your Documents: Sales contract, warranty info, repair orders, and receipts for expenses.
- Record Key Details: Keep track of mileage when issues first appear.
- Save Receipts: If you’ve paid for repairs, rentals, or towing, keep those receipts.
- Consult an Expert: A Lemon Law attorney can help maximize your claim.
How Can Lemon Fixers Help Me?
Understanding the Lemon Law buyback formula is just the first step—getting the compensation you deserve is where Lemon Fixers come in. Our experienced team knows the ins and outs of California Lemon Law and will fight to get you the best possible outcome.
If you’re dealing with a defective car, don’t wait! Contact Lemon Fixers today for a free consultation and let us handle the hard work while you focus on getting back on the road.
