Recovery & Buybacks

What can I recover in a Lemon Law claim?

Depending on your situation, you may be entitled to a buyback (repurchase), a replacement vehicle, or a cash settlement. A buyback generally includes your down payment, monthly payments, and related costs, minus a statutory mileage offset for your use before the first repair. In some cases a civil penalty of up to two times your damages may also apply when the manufacturer willfully fails to comply.

Read the statute

• Civil Code § 1794: buyback, replacement, and damages

How is the mileage offset (usage deduction) calculated?

When a manufacturer buys back your vehicle, the law allows a deduction for the miles you drove before the first repair attempt for the defect. It is calculated by multiplying the cash price or lease total by the miles at first repair divided by 120,000. The buyback calculator applies a similar formula to give you a directional estimate.

Buyback vs. replacement: which remedy should I choose?

A buyback returns you to your financial position before the defective vehicle, minus the mileage offset. A replacement provides a comparable new vehicle, which can make sense if you trust the model line but your VIN is problematic. Cash settlements are negotiated when a full buyback or replacement is impractical. Your loan balance, how long you have been without a reliable car, and whether the defect is safety-related all affect the best choice.

What incidental costs are included in a buyback?

Song-Beverly buybacks can include amounts you paid toward the vehicle (down payment, finance charges, registration, taxes) and sometimes collateral charges such as towing, rental cars, and repair deductibles tied to the defect. Exact items depend on your contract and negotiation. Keep every receipt related to the defect; they support reimbursement during settlement.