California Lemon Law Buyback Calculation

California Lemon Law Buyback Calculation

The California lemon law enables lemon vehicle owners to obtain either repurchase or a vehicle replacement if the manufacturer is unable to repair the defective vehicle after a “reasonable” number of attempts. Yet, there is a common misunderstanding among lemon car owners over the amount they are entitled to receive in the result of lemon car buyback. The key reason is that most lemon owners are unaware of California lemon law buyback calculation formula.

According to the California lemon law Civil Code Section 1793.2(d)(2)(C), when the manufacturer repurchases a defective car following the lemon law buyback remedy,  a “mileage offset” is deducted from the actual amount paid to the consumer. The mileage offset is cut off the buyback amount for the potential use of the vehicle prior to the emergence of defects impairing its use and safety. Civil Code Section 1792(d)(2)(C) states that:

“When the manufacturer replaces the new motor vehicle pursuant to subparagraph (A), the buyer shall only be liable to pay the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. When restitution is made pursuant to subparagraph (B), the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity. The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer-installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity.”

California Lemon Law Buyback Calculation Formula

California lemon law uses a buyback calculation formula when the vehicle is repurchased as a lemon. The formula is based on the mileage of the first repair attempt of the vehicle. The manufacturer must follow the formula when it computes the amount of money that they must return to the consumer. Here is the California lemon law buyback calculation formula:

(first repair attempt mileage / 120,000 (miles) x (purchase price of vehicle)=mileage offset amount.

120,000 (miles)  represents the expected life of a vehicle and is set by the statute. It is unchangeable for each vehicle.

For example:

If the purchase price of the vehicle was $25,000, and

Miles driven at first repair were 10,000

The formula will be:

(10,000 /120,000) x 25,000 = $2,083.33

$25,000 minus $2,083.33 = $22,916.67

So, the manufacturer will have to return the customer $22,916.67 as a lemon buyback.

Sometimes manufacturers try to trick customers and use higher mileage when applying the formula. Knowing how lemon law buyback formula works can refrain you from becoming the victim of manufacturer’s tricks. Yet, legal matters cannot be successfully solved without professional legal assistance. The experienced and skillful lemon law attorneys at the Margarian Law firm master California lemon law inside out and are open to offering you effective legal help for any lemon car situation.