How the California lemon law buyback calculator works
When a new vehicle can't be fixed after a reasonable number of repair attempts, California's lemon law (the Song-Beverly Consumer Warranty Act, Civil Code section 1793.2) requires the manufacturer to either replace it or buy it back. A buyback is called restitution: the manufacturer refunds what you paid, then subtracts a small amount for the miles you drove before the problem first appeared. This calculator runs that math with your numbers so you can see a realistic range before you talk to a lawyer.
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The buyback formula in plain terms
Restitution starts with the actual price paid or payable for the vehicle. That includes the cash price or lease payments, plus collateral charges such as sales tax, license and registration fees, and other official fees. Incidental damages, such as towing, rental cars and some finance charges, are added on top.
From that total the manufacturer may deduct a mileage offset, which is the only reduction the statute allows for your use of the vehicle:
- Buyback ≈ price paid or payable + collateral charges + incidental damages − mileage offset
- Mileage offset = (miles driven before the first repair visit for the defect ÷ 120,000) × price paid for the vehicle
Why the 120,000-mile denominator matters
The statute treats 120,000 miles as the expected life of a vehicle, so the offset charges you only for the share of that life you used before the defect showed up. Miles driven after your first repair visit for the problem are not counted. That is why the date and odometer reading on your first repair order are among the most important documents in a lemon law claim.
Three worked examples
New SUV, defect at 6,000 miles
Price paid $40,000. Offset: 6,000 ÷ 120,000 × $40,000 = $2,000. Before taxes, fees and incidentals, the refund would start from about $38,000.
Luxury sedan, defect at 15,000 miles
Price paid $62,000. Offset: 15,000 ÷ 120,000 × $62,000 = $7,750. Collateral charges such as sales tax and registration are added back before the offset is applied.
Electric vehicle, defect in the first week
Price paid $55,000, first repair visit at 400 miles. Offset: 400 ÷ 120,000 × $55,000 ≈ $183. When a problem appears early, the offset is close to zero.
Frequently asked questions
- Is the calculator's number what I will receive?
- No. It is an educational estimate. The final figure depends on your contract, your repair history, loan payoff, any rebates, and how the manufacturer responds. An attorney can check the numbers against your paperwork.
- Do I pay attorney fees out of the buyback?
- No. Under Civil Code section 1794(d), a consumer who prevails recovers attorney fees and costs from the manufacturer. CLINE APC does not charge clients for lemon law representation.
- What if I financed or leased the vehicle?
- A buyback typically pays off the lender and refunds what you have paid, including your down payment and monthly payments. Leases are covered too; the calculation uses lease payments made instead of a cash price.
- Can the manufacturer deduct more than the mileage offset?
- The statute allows the use offset and, in some cases, deductions for non-manufacturer items such as third-party add-ons. Damage beyond normal wear can also be raised. Anything else should be questioned.
- What can increase the recovery?
- If a manufacturer willfully fails to meet its obligations, the law allows a civil penalty of up to two times actual damages. Whether a penalty is available depends on the facts of your case.
Want an attorney to look at your numbers? Request a free case review or read the complete guide to California lemon law.