If you’re reading this post, you’re probably new to the concept of lemon law. You may not even know it existed until you found out your new vehicle was sold with manufacturer defects.
The good news is lemon law was put in place to protect consumers from mistakes made in auto factories. Lemon law – known as the Magnuson-Moss Consumer Warranty Act – was enacted in 1975 to hold manufacturers accountable for selling defective vehicles.
Lemon law exists across the country, but each state has unique requirements that qualify a defective vehicle as a “lemon”. Once your vehicle meets the state’s requirements, it may be eligible for a lemon law buyback.
In this post, we want to explain the details of this term and how you can maximize your legal compensation. Let’s dive in.
What is a Lemon Law Buyback?
If your defective vehicle cannot be repaired and meets all the qualifications of your state’s lemon law – and the manufacturer agrees – they are required to provide a buyback.
In the eyes of lemon law, a buyback involves the process in which the auto manufacturer repurchases the defective vehicle from the consumer. In essence, it’s a refund or reimbursement for every last dollar spent on the vehicle.
Now, a buyback goes beyond just the cost of the vehicle. An optimal lemon law buyback will include all losses incurred. We’ll explain these in the next section.
Compensation to Pursue in a Lemon Law Buyback
There are many components to a lemon law buyback that tend to fly under the radar. This is why it’s so important to work with a skilled lemon law attorney. They will make sure every last penny is accounted for in the claim.
Here are the major components of a lemon law buyback.
Cost of the Vehicle
First and foremost, the lemon law buyback will include a reimbursement for the price of the defective vehicle. This will include:
- The down payment
- Loan payments made
- The remaining balance of the loan
You will need to keep track of all records related to the cost of the vehicle, terms of the loan, and so on.
Deductions in the Reimbursement
Unfortunately, the reimbursement amount for the vehicle will probably not be the same price you originally paid for it. Deductions may apply, like the mileage offset.
The mileage offset refers to a dollar amount deducted from the buyback to account for the use of the vehicle before the defect was reported. It’s a way to compensate the manufacturer for the “good use” of the vehicle before it started showing issues.
The offset is calculated using a formula defined by the state’s specific lemon law, which considers the miles driven before the defect becomes apparent relative to the car’s expected lifespan.
Official Costs
Official costs of a defective vehicle generally include sales tax, registration fees, license plate (if applicable), etc.
Incidental Costs:
Incidental costs – also referred to as collateral costs – refer to any other expense paid due to the defective vehicle. This list can get very extensive.
For example, if the vehicle broke down due to a defect while you were a long way from home, you may be faced with towing fees, hotel stays, cab fares, Uber/Lyft costs, meals, and so on.
All of these costs can be factored into the lemon law buyback. You will need to keep all receipts involved, and records of these expenses.
Court Costs and Attorney Fees
This is a big one – and manufacturers don’t want you to know about this.
In many states, manufacturers are required to pay for all of the consumer’s lemon law lawyer fees as part of the buyback. This is the case in states like California – which is known to have some of the most consumer-friendly lemon laws in the country.
This is why a trustworthy lemon law lawyer in California will not charge consumers anything out-of-pocket to take the case – as they know the manufacturer will have to cover their fees as part of the buyback. This is referred to as a contingency fee agreement.
The lemon attorney will only take your case if they think they can win – and you pay them nothing upfront.
Replacement Option:
In some states, there is an alternative option to a lemon law buyback. If you prefer to stick with the same auto brand, you can request a replacement vehicle for your defective one. The manufacturer may then provide a new vehicle of the same model/year or one of equal value.
However, in states like California, the manufacturer must agree to provide a lemon law replacement. They are required by law to provide a buyback if the consumer opts for it.
The Lemon Law Buyback Process (at a Glance)
The lemon law buyback process will differ slightly from state to state, but the major parts of the process are as follows:
- You notice a defect that impairs the vehicle’s functionality, safety, and/or value.
- You file an initial complaint with the manufacturer, which starts the lemon law process.
- The manufacturer will direct you to a certified repair facility.
- The manufacturer-certified repair facility will attempt to fix the defect.
- If they cannot repair the defect with a reasonable number of attempts – or the vehicle is out of service for a specific timeframe, the vehicle may be ruled a lemon.
- If the vehicle meets the state’s lemon law qualifications, the consumer may file a claim for a buyback.
- The manufacturer will assess the claim and accept or deny it.
- You (with the help of a lemon law attorney) will negotiate the claim amount with the manufacturer.
- Once both parties agree to a compensation offer, the process is completed.
- If neither side can agree on a settlement, the claim may be taken to court – this is typically a last resort.
- The buyback will be completed and the consumer will receive a monetary transfer.
Note: Manufacturers have no intention of providing a fair buyback amount. The process will often require aggressive negotiations with the help of a skilled lemon law attorney.
Tips for Consumers to Maximize Their Lemon Law Buyback
Maximizing a lemon law claim comes down to a few key factors. To achieve the best result, consumers need to do the following:
Gather and Organize ALL Documentation
Lemon law buybacks are contingent on documentation – verbal agreements do not count. Be sure to have all paperwork in order when you file the lemon law claim. This includes (but is not limited to):
- Purchase/leasing order for the vehicle
- Loan information
- Warranty terms
- Records of official costs
- All receipts and invoices for everything related to the lemon
Hire a Lemon Law Attorney
To reiterate, manufacturers have no intention of taking responsibility for selling a defective vehicle. Not only are lemon law buybacks expensive, they are also a black mark on the automaker’s global brand. To protect their bottom line and reputation, they have extremely high-powered legal defense teams to fight against lemon law buybacks.
Lemons are rare – and consumers who end up with one are likely doing so for the first time. Without proper knowledge and experience in the state’s lemon law, it will be nearly impossible to negotiate a fair settlement.
This is why it’s so important to hire a skilled lemon law lawyer to fight for your buyback. Otherwise, you will likely get shortchanged.
Reminder: It costs you NOTHING out-of-pocket to hire a lemon law attorney.
Educate Yourself on the Basics
Although your attorney will do most of the heavy lifting in the legal process, it’s important to have a basic knowledge of your state’s lemon laws. This will help speed the process up – as you will have an understanding of your role and how you can help your attorney.
If you’re reading this post, you’re doing the right thing!
The Wrap
Seeking a lemon law buyback may seem difficult, but if you hire the right legal counsel, the process can be resolved relatively quickly – and most importantly, comprehensively. To come full circle, the goal of a lemon law buyback is to get reimbursed for every last dollar paid for the defective vehicle.
If you have the slightest hunch your vehicle has manufacturer defects, talk to a lemon law attorney. Nearly all offer free consultations to understand your situation and legal options. Most are sympathetic to the fact that you’ve likely never been in this situation before – and are happy to provide guidance.
Author Bio – Brian K. Cline’s Lemon Law Legal Group provides premier legal services. Our California lemon law lawyers aggressively and ethically force vehicle manufacturers to buy back defective and dangerous vehicles. Our team includes experienced trial lawyers with over 40 years of combined trial experience.
