Process
Refund / Lemon Buyback
Replacement Vehicle
If your vehicle is a “lemon” and you get a replacement vehicle, whether it was purchased or leased, the replacement vehicle must:
- Be substantially identical to your vehicle as it existed at the time you purchased or leased it;
- Include the same service contract, if applicable;
- Include any undercoating, rustproofing or other factory/dealer options that came with the original vehicle; and
- Reimburse you any incidental and consequential expenses that are related to the lemon, which include rental car or tow expenses.
The manufacturer is responsible for any sales tax, license and registration fees for the replacement vehicle. The balance of your finance or lease term will remain with the replacement vehicle. Before receiving the replacement, it is advised that you contact your lender to learn how they will deal with your existing loan or lease as you may need to make a new loan with different terms. You will be responsible for any difference in price between the original and replacement vehicle.
Mileage Offset Formula
If your vehicle is a “lemon” and you get a refund or replacement, the manufacturer is entitled to deduct an offset for the time that you drove your vehicle ‘trouble-free.’ The mileage offset is calculated by multiplying the purchase price by the mileage at the first warranty repair attempt for the problem that rendered it a lemon, and dividing this amount by 120,000 (which in Washington, is the average life expectancy of a vehicle).
Following is an example to illustrate the mileage offset formula:
Use our calculator below to see what your mileage offset could be.
Cash Compensation
If the problems with your vehicle do not rise to the level of it being considered a “lemon,” you may be entitled to receive cash compensation for its diminished value as a result of its problems. Many times the problems with a vehicle may not rise to the level of a “substantial impairment.” In these situations, the manufacturer will often pay the consumer a “cash and keep” settlement. This is where you will keep your vehicle and receive a sum of money for the problems you experienced with it. Also, the remaining portion of the warranty will remain in effect.
Replacement Vehicle
You may receive a replacement vehicle that is substantially similar to the one that is a lemon. The replacement vehicle will include the same service contract (if applicable), dealer options that came with the original vehicle, and a reimbursement for incidental and consequential expenses such as towing or rental car fees. However, be aware that you may be responsible for any difference in price related to the replacement vehicle and any usage fee for the time that you drove the lemon vehicle ‘trouble-free.’
Refund/Buyback
- Down payment
- Monthly payments
- Remaining loan balance
- Vehicle financing, taxes, registration fees, and service contracts