What Exactly is a Lemon Law Buyback?
When it is determined that a vehicle has serious enough manufacturing defects that it is classified as a "lemon", a "lemon law buyback" may be offered to the consumer. Under a lemon law buyback, the manufacturer agrees to repurchase the vehicle at an agreed upon or statutory amount. This will typically include all costs associated with the repair of the vehicle, including rental car expenses and related tax, title, and registration fees. Of course, if the consumer is still making vehicle payments, the manufacturer will also repay all outstanding loan payments.
Historically , Lemon Laws arose as the result of consumers being sold defective vehicles, which manufacturers had no incentive to fix. For example, if you bought a car that was in the shop for repairs 3 or 4 times but those repairs were never able to fix the problem, a Lemon Law gives a consumer a way to recoup purchase costs. Lemon laws developed to protect consumers from being stuck with defective vehicles, or lemons.
Lemon law buybacks are not the same from manufacturer to manufacturer. Each manufacturer has its own guidelines in terms of when a vehicle is eligible for a buyback. The exact requirements vary depending on the state.
How the Lemon Law Buyback Calculator Functions
To get started, consumers need to input their name and email address to receive their data. Then, a series of questions will pop up that will help calculate the buyback value of the defective vehicle.
The answers to these questions will determine the type of vehicle (i.e. car, motorcycle, boat, etc.) and general information about the overall performance and functionality of the vehicle. The inputs the user will provide will mostly have to do with the make, model, year, and color of the vehicle. Also, there will be questions regarding how the customer came to know of the defect and whether or not they notified the manufacturer of the defect.
There are two general types of damages the consumer can receive. The first type of damage is for economic loss which essentially is the amount by which the vehicle has depreciated during the time that the vehicle has had the defect callback. The second type of damage is for non-economic loss which is compensation for inconvenience and other factors not directly related to the depreciation of the vehicle.
Elements that Influence Buyback Value
A multitude of factors can impact the buyback value. The initial factor involves the cost of the vehicle. Also crucial in determining the amount will be the number of repairs conducted, number of days it spent with the dealership and number of miles the vehicle is driven, which is known as the mileage offset. The factors that affect the mileage offset may differ from case-to-case. The warranty statement in the owner’s manual plays a significant role in determining this figure and the way it is interpreted by a judge.
The warranty statement can elucidate the number of days for which the vehicle is covered under warranty and how many miles that is equivalent to, which would be the same number that would be deducted from the lemon law buyback amount if the case is settled or awarded at trial. If the vehicle was in the shop for warranty repairs for 70 days and the warranty is for 75, then the calculator would deduct the extra 5 days from the buyback value. If the vehicle was in the shop for warranty repairs for 70 days and the warranty is for 70 miles, then the calculator would deduct the extra 10 miles from the buyback value.
The warranty’s terms can vary for several reasons. One way it can change is due to the enactment of the Federal Motor Vehicle Safety Act, which went into effect on Aug. 28, 2012. This law stipulated that warrantors needed to include language that informed consumers of their rights related to lemon law and breach of warranty claims. As a result, the manufacturer can no longer include "goodwill" service visits or free services within the warranty’s terms as the National Highway Transportation Safety Administration no longer recognizes this as being part of the warranty. If these matters are included, the claimants are not prohibited from arguing that the warranty length is in fact shorter than the number of miles indicated on the Lemon Law calculator, as well as showing the full amount should have been paid under the statute.
The warranty language in the manual is important because it adjusts the warranty period according to the date of the original purchase. Therefore, the warranty can be much longer and the mileage offset less as time goes on from the vehicle’s purchase date where previous owners have driven the car for a longer period of time.
How to Use a Lemon Law Calculator: Step-by-Step
Input the Basic Information
Once you’ve landed on the lemon law calculator page, you will be asked for some basic information about the vehicle in question, such as the make, model, model year and odometer reading at purchase. Enter all requested fields, paying special attention to details and double-checking for accuracy.
Check the Warranty Status
Most lemon law calculators make field for indicating whether the vehicle is currently covered by a warranty. Depending on the instance of the calculator, this could be the factory warranty, a third-party extended warranty or a repairer’s warranty. For the purpose of calculating whether you own a lemon, and eligible for a buyback, it’s especially important to check the warranty status of the vehicle at the time of your purchase.
Answer Questions About Dealership Service Visits
Most lemon law calculators will provide a series of questions pertaining to your service history with the dealership or car dealer specific to the car in question. You’ll typically also be asked whether the car is being driven within the state’s warranty mileage requirements. (Note: Before you take a car out of its state warranty, check to see whether your mileage adds up to transfer the car into another state’s warranty miles.) Be sure to answer these questions carefully, specifically by taking into account whether you received multiple service visits for the same issue and whether one of the dealer’s fixes actually provided a solution.
Consider Cross-Referenced State Laws
Many lemon law calculators will update you about possible other state regulations relating to car buybacks and manufacturer refunds. Take all of these into consideration when reviewing the results from your lemon law calculator.
Preserve All Documentation
Keep in mind that all lemon law cases are heavily reliant upon documentation. Make sure to preserve copies of any records furnished to the lemon law calculator and you submit to your attorney, particularly those regarding inspections and warranties.
Lemon Law Pitfalls to Avoid
Mistakes, Missteps, and How to Avoid Them
There’s a few pitfalls to watch out for as you use the calculator. Let’s first get into some of the mistakes we’ve seen consumers make.
Many bring their calculator estimates to therapy and argue that they have to surrender their vehicle on the spot. This is not how that works. You can leave the car in the shop, as you normally would. If your estimate is accurate, a settlement offer will soon follow that should include a rental car while your fight a fair buyback settlement or demand an improved offer. It’s not a get in and turn it another day type of thing.
Another common mistake is assuming that the number that the calculator gives you is the most money that you can be paid for your lemon . That’s simply not true – some consumer protections may enable you to arrive at a higher number. And even if the number isn’t larger, you may have had other costs and inconveniences that might get you even more.
It’s also possible that you’re actually being taken advantage of by the calculator. This might happen if it suggests a lower number than you found using its competitors. It could also happen if you hit a new low payoff furniture. Although, none of this should really be an issue. All of the calculators stay fairly close to each other with a little, if any, deviation. But, when in doubt, back out of the calculator and look at other websites’ estimators, such as Kelley Blue Book, Edmunds. In general, I don’t trust calculators so you are best looking them up and coming to the same conclusions.
Advantages of Using a Lemon Law Calculator
Using a lemon law buyback calculator can offer several benefits:
Financial Transparency
The primary goal of a lemon law buyback calculator is to bring clarity to the often complicated world of lemon law calculations. The number of potential damages that you are owed in a lemon law claim increases significantly if you have all your records in order, and a lemon law buyback calculator allows for the accurate and immediate assessment of your case.
Being Informed Before Negotiation
Having clear outlines in your head before negotiation helps you to be a confident and informed negotiator. By calculating and having an approximate value of your damages, you have a much stronger position at the beginning of a settlement negotiation.
Being Aware Before Suit
If you are uncertain whether your claim is worth pursuing, you can greatly benefit from the financial information provided through lemon law buyback calculators. Once you know what you could potentially recover, you can make an informed decision as to whether or not you can afford to take a suit the next step. If the answer is no, you can again benefit from having that information on hand for the near future.
How to Choose the Right Lemon Law Attorney
When filing an arbitration through the BBB Auto Line or Small Claims Court, it’s important to select a lemon law buyback attorney who is experienced in the field of lemon law, regardless of your state. When seeking out a qualified attorney for a lemon law buyback case, consider some of the following tips:
Run a search online – One of the most convenient methods of selecting a lemon law buyback attorney is by conducting an online search. Many attorneys have their own professional websites that list all the legal services they offer and the states they service. From here, you can run an advanced search by adding specific keywords like "lemon law arbitration attorney Los Angeles" or "lemon law Buyback attorney New Orleans." This narrows down your search even further, so you’ll be able to find a law professional right in your area who specializes in lemon law buyback cases.
Review their qualifications – When you find a lemon law buyback attorney in your state , take the time to read through the website. This will let you know important information such as whether or not the attorney is certified by the local bar association, what kind of lemon law services are offered, and other essential factors you need to know before contacting the attorney. Most importantly, make sure that the attorney is experienced in the exact lemon law arbitration services you’re seeking, and that he or she has had a successful history of handling cases similar to your own. After finding a qualified attorney, you’ll be able to schedule a consultation to discuss the specifics of your situation and how you can move forward.
Choosing legal representation is definitely a big decision, but when it comes to selecting an attorney who is competent in his or her field of lemon law, you won’t regret choosing someone who is experienced.