Lemon Law Refund Options

Car Lemon Law

Call 1-888-80-LEMON for a free consultation

The Replacement Option

In some cases, consumers would prefer to receive a new replacement vehicle from the manufacturer. This option works well for people who have a significant amount of "negative equity" appearing on their purchase contract due to a prior trade-in vehicle with an agreed upon value lower than the previous loan balance. It is also a good option for people who have an exceptionally low interest rate on their current loan. The procedure for obtaining a new replacement vehicle under your existing contract is called a Substitution of Collateral. Please call us at 1-888-80-5366 for a free consultation to learn whether a Substitution of Collateral is best for you.

The Repurchase Option

The California Lemon Law entitles the buyer to a refund of the down payment, monthly payments, payoff of the balance of the remainder of the loan or lease, dmv fees and taxes. You may also be entitled to additional costs you incurred as a result of having to deal with your defective car, such as rental car, towing and, in some cases, the cost of repairs to your vehicle when the dealership failed to pay under the warranty.

The "Usage Fee"

In some cases, consumers must pay a usage fee based on a very specific formula contained in the California Lemon Law. This fee is said to represent the value received by the consumer while they were able to drive their car before the defects appeared. Normally, the amount is based on the number of miles appearing on the odometer on the date of the first repair attempt and is deducted from the total amount received by the consumer. In many cases, the manufacturer will attempt to charge a higher fee than is justified under the circumstances. This is one area where the manufacturers try to minimize their payment to the consumer, thus reducing their total cost in the Lemon Law buyback/replacement process. This is just one area where it really pays to have an experienced attorney on your side to ensure you receive a full refund as required under the California Lemon Law. If you would like to have one of our experienced attorneys review your purchase or lease contract with you over the telephone to calculate the amount of your refund should you decide to pursue your case under the California Lemon Law, please call 1-888-80-5366.