Lemon Law Buyback Refund Calculator
If your car qualifies as a lemon under state law, you can demand a buyback from the manufacturer. Calculate your refund: purchase price minus mileage offset (use up to first failure), plus collateral charges (taxes, registration, finance charges, repairs).
| Purchase Price | — |
| Sales Tax + Registration | — |
| Finance Charges Paid | — |
| Extended Warranty | — |
| Incidental Costs | — |
| Total Collateral Charges | — |
| Miles at First Defect | — |
| State Mileage Divisor | — |
| Mileage Offset (Use Deduction) | — |
| Total Refund Estimate | — |
What Qualifies as a Lemon
State lemon laws define a lemon as a new vehicle with a defect that substantially impairs use, value, or safety AND that the manufacturer cannot fix after a reasonable number of repair attempts. Most states require 4+ repair attempts for the same defect OR 30+ cumulative days in the shop within the first 12-24 months or 18,000-24,000 miles.
California's Song-Beverly Act is most consumer-friendly: covers new and used vehicles under manufacturer warranty, 18,000 miles or 18 months. Federal Magnuson-Moss Warranty Act provides backstop nationwide. See your state's lemon law statute for exact thresholds.
Mileage Offset Formula
The manufacturer is entitled to offset your refund by the value of your use of the vehicle. Most states calculate offset = (miles at first defect / total expected life miles) × purchase price.
California uses 120,000 miles. Texas uses 100,000. New York uses 120,000. Florida varies. So 5,000 miles at first defect on a $32,000 car in California = $1,333 offset. The earlier you report the defect, the lower your offset and the bigger your refund.
Collateral Charges Recoverable
In addition to the purchase price minus mileage offset, you can recover: sales tax, registration fees, finance charges already paid, extended warranty cost (if separately purchased), and incidental damages (rental cars, towing, repairs, lost work time).
Some states allow recovery of attorney fees as well. California, Florida, and Texas mandate manufacturer payment of buyer attorney fees under the lemon law — meaning you pay nothing out of pocket for legal representation.
Process and Practical Tips
Document every repair: keep written work orders, dealer notes, and dates. Send a formal demand letter to the manufacturer (not the dealer) once you meet the qualification threshold. Most manufacturers offer a buyback or replacement to avoid trial.
Hire a lemon law attorney — they take cases on contingency and recover their fees from the manufacturer. The vast majority of cases settle without trial. Resources: NCLC Lemon Law Center and your state attorney general's office.
Source: National Consumer Law Center + state lemon law statutes