Calculating Your California Lemon Law Buyback Amount

If you are experiencing problems with a motor vehicle that began while the vehicle was under the manufacturer’s warranty, you may be legally entitled to demand a replacement vehicle or a refund of your money under California’s Lemon Law.

A California Lemon Law claim requires certain steps before asking the court to order the auto manufacturer to refund your money or replace your defective automobile. A consumer with a qualifying vehicle may recover all money spent for the vehicle minus a reasonable amount for mileage accrued since their purchase. The costs that may be recovered include associated sales tax, tag and registration fees, repair costs, and incidental costs, such as for towing the faulty vehicle or having replacement transportation.

It is important to understand how to develop a successful California Lemon Law claim and how the buyback amount is calculated. An experienced Lemon Law attorney at The Barry Law Firm of Los Angeles can help you understand the options available to you. We’ve helped thousands of Californians rid themselves of faulty vehicles and recover their costs and losses. Contact us for a free consultation about your lemon vehicle.

Figuring Out California’s Lemon Law Buyback

The California Lemon Law (Civ. Code, § 1793.2 and § 1793.22) says a car is a lemon if a reasonable number of repair attempts have not resolved a problem that impairs the use, value, or safety of the vehicle, and the problem is covered by the manufacturer’s warranty. The vehicle’s manufacturer must either replace a vehicle that is a lemon or repay the owner’s costs associated with buying and attempting to repair the vehicle.

Under California’s Lemon Law, a car is a lemon if repair work cannot resolve the problem in a reasonable number of attempts. A reasonable number of attempts can vary from car to car, depending on certain factors. Two or more attempts are typically considered reasonable if the problem is serious enough to cause death or serious bodily injury. If the problem is less dangerous, manufacturers may be entitled to more than two attempts to fix the problem. In certain circumstances, if your vehicle is out of service for an inordinate amount of time, your vehicle may automatically qualify as a lemon.

A successful claim requires the car owner to document multiple failed repair attempts at one or more authorized dealerships.

Assuming a last repair attempt is unsuccessful, the car owner may then file a Lemon Law lawsuit to demand compensation.

How To Calculate the California Lemon Law Buyback Amount

Monetary restitution in a California Lemon Law claim is to be based on:

• The actual price paid or payable by the buyer to purchase the vehicle, including any charges for transportation and manufacturer-installed options
• Collateral charges, such as sales or use tax, license fees, registration fees, and other official fees
• Incidental costs, including reasonable repair, towing, and rental car costs incurred by the buyer.

However, the law allows the manufacturer to reduce the buyback payment by an amount “directly attributable to use by the buyer” before the buyer’s first repair attempt of the vehicle’s covered problem. This is known as the “mileage offset” or “usage fee” and has a specific formula.

The mileage offset is determined by multiplying the vehicle’s actual purchase price, including transportation and manufacturer-installed options, by the vehicle’s mileage before repairs divided by 120,000. That represents the expected mileage life of a late-model vehicle.

Therefore, under the California Lemon Law buyback formula, a calculation would look like:

$50,000 (cost of the car) X 15,000 (miles) divided by 120,000

15,000 / 120,000 = 0.125

$50,000 X 0.125 = $6,250 mileage offset

$50,000 – $6,250 = $43,750

The buyback payment in this example would be $43,750 plus the vehicle owner’s collateral and incidental costs.

Keep in mind that the price of any non-manufacturer parts or modifications installed by a dealer or the buyer is not included in the car owner’s refundable costs.

But the statute also states that restitution includes any collateral charges such as sales or use tax, license fees, registration fees, and other official fees, plus any incidental damages incurred by the buyer, including repair, towing, and rental car costs.

Maximizing Your California Lemon Law Buyback Amount

Documentation is key to maximizing the buyback payment in a successful California Lemon Law claim. You’ll need records of the dealership’s attempts to repair your vehicle to prove that your vehicle qualifies as a lemon.

You also need to keep all records of the money you have spent because of your defective vehicle. This includes receipts for incidental and consequential expenses such as towing charges and rental car fees.

In rare cases, another part of California law regarding consumer warranties allows a car owner to seek a civil penalty if they can prove the car manufacturer willfully violated some aspect of the California Lemon Law. This payment would be up to two times the amount of actual damages awarded in the claim.

Seeking a civil penalty would be appropriate if the manufacturer refused to investigate your Lemon Law complaint, a manufacturer’s policies created obstacles to consumers’ ability to avail themselves of Lemon Law protections, or a manufacturer similarly acted in bad faith.

Finally, California’s consumer warranty protection requires the manufacturer to pay your attorney’s fees if your Lemon Law claim succeeds. At The Barry Law Firm, we will not charge you in the event of an unsuccessful claim. It costs you nothing to seek the compensation you deserve.

A California Lemon Law attorney from The Barry Law Firm can help you gather and organize the documents required to file a Lemon Law claim. We will work to make sure you fully understand your specific case and potential buyback amount.

Contact an Attorney at the Barry Law Firm Today

The California Lemon Law buyback calculation process requires you to demonstrate the costs and losses that you are entitled to recover. A California Lemon Law attorney with The Barry Law Firm can provide experienced help with gathering documents, pressing your claim, and ensuring your maximized recovery.

Reach out now online or at 877-LEMON-03 for a free consultation about how The Barry Law Firm can help you.