You May Be Entitled to Reimbursement for a Defective Vehicle

You’ve just purchased a new car, but you’ve had it repaired multiple times and you may have been sold a lemon. Luckily, you’ve done some research and read that every state has lemon law statutes that protect you just in case you purchased a defective product.

Lemon Law Solutions

If your vehicle falls under the protection of lemon law, then you will be entitled to one of these solutions:

Vehicle Replacement

Your dealership will provide you with a vehicle that is considered similar to yours. This new vehicle will include the same dealer options as your first vehicle. If applicable, the dealer will provide you with the same service contract as before. You also may be entitled to a reimbursement for the fees you incurred, including towing expenses, rental cars, etc.

Be advised that you may be responsible for covering price differentials and possible usage fees for the time that you drove the vehicle without troubles. A lemon law attorney will be able to provide you with the expert solutions you need for your particular case.

Buyback or Refund

You could choose to have your vehicle bought back, and this option consists of the following:

• Manufacturer refunds your down payment on the vehicle
• Refund of your monthly payments
• Reimbursement of your vehicle’s financing, taxes, registration fees, and service contracts (provided by the manufacturer)
• Paying off the remaining loans and/or lease of your defective purchase

How Do I Calculate My Lemon Law Refund?

Your lemon law refund will be based upon the answers to the following:

• How much have you paid for your vehicle?
• How many miles had you driven at your first repair attempt?
• How much was your down payment?
• How much are your monthly payments?
• What is the total amount of payments you’ve made?
• What’s your vehicle’s estimated usage fee?
• What were your registration fees?
• What is the total amount of other fees have you incurred as a direct result of your defective vehicle?
• How much has your mileage been offset from its original amount?

Each lemon case is different and speaking with a trusted lemon law professional will help you determine the type of reimbursements you can expect.

What is a Cash-and-Keep Lemon Law Settlement?

If your vehicle has deficiencies but doesn’t meet your state’s requirements for lemon law, then your dealer could be responsible for paying you a “cash-and-keep” settlement. In a cash-and-keep settlement, you get to keep your vehicle, but your dealer will pay you cash for the dilemmas you’ve faced because of your damaged vehicle. Exercising the cash-and-keep option may not be in your best interest, so it’s important to speak with an experienced attorney about your options.

What Are Typical Lemon Law Settlements?

Since each state has its own statutes for determining the details of a settlement, there isn’t an atypical settlement scenario. We advise you to speak with an attorney to ensure that your manufacturers don’t take advantage of your lack of experience.

If you’re looking to build leverage in your case, then follow these simple steps:

• Keep detailed notes about repairs, conversations you’ve had with your manufacturer, times, dates, and names, and any other useful information that can help you to build a better claim.
• Inform your manufacturer as soon as possible that you are intending to start the buyback process once you’ve determined your car meets your states’ criterium.
• Hire a lawyer that can help you navigate lemon law and litigate your arbitration or case.
• Research all information about the make and model of your vehicle to determine if the deficiencies of your vehicle are systemic.