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BUYBACK AND REPAIR

UNDER LEMON LAW

finition

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Table of content

Know the Lemon Law of Your State

Conditions for Lemon Law

Vehicles not covered by Lemon Law

Automobile Replacements

What Is Required of the Manufacturer?

Vehicle Buybacks

Recovery of Incidental Damages

Refund

Our contacts

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Know the Lemon Law of Your State

The views of a lemon are different in every state.

You should find out what your state says about your car

and if it constitutes under the lemon law.

There are state laws and federal laws that protect the consumer

from automobile fraud and from being sold a lemon.

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The vehicle must have

a serious defect or

abnormal condition.

The problem must

substantially impair

the usage or value

of the vehicle, or

produce a serious

safety hazard.

While the vehicle is

under warranty, the

problem must be

reported to the

dealer or

manufacturer.

A reasonable

number of attempts

must be made to fix

the problem.

Written notice must

be given to the

manufacturer, who

gets one last

chance to remedy

the complaint.

Conditions for Lemon Law

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Vehicles not covered by Lemon Law

auto-homes;

vehicles built primarily for off-road use;

vehicles used primarily for business

purposes;

vehicles with defects caused by owner

negligence, accidents, vandalism, or

unauthorized repair of the vehicle by a

person other than the manufacturer or

authorized agent;

vehicles leased before July 1, 1997.

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Automobile Replacements

Under California’s lemon law, when a manufacturer provides you with a replacement

vehicle, it must also pay all of the collateral charges typically accompanying the sale. This

includes any sales tax, license fees, registration, and other official fees. The manufacturer

cannot force you to pay any of these amounts.

A manufacturer must also pay any “incidental damages” caused by your vehicle’s defects

and repairs. Incidental damages are discussed in greater detail below.

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Automobile Replacements

One of the first and most important things to know about the lemon law’s replacement

remedy is that it is entirely optional for both the consumer and the automobile

manufacturer. A lemon law replacement happens only when both parties agree on a

replacement, as opposed to a buyback. You cannot force a manufacturer to offer a

replacement if it doesn’t want to, and a manufacturer can’t force you to accept a

replacement. Either party can insist on a lemon law buyback if they choose to do so.

If the parties agree on a replacement, then the manufacturer must replace your defective

automobile with a new, substantially identical car, truck, or SUV. Further, the replacement

must be delivered to you with all of the warranties that typically accompany that type of

new automobile. In other words, your warranty period restarts.

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The manufacturer upon reacquiring a vehicle because of

specified warranty defect(s) must:

•Request the Certificate of Title and Registration Certificate be

marked "Lemon Law Buyback."

•Title the vehicle in the manufacturer's name.

The manufacturer will attach a decal to the vehicle. The decal

will read "Lemon Law Buyback" and will be affixed to one of

the following:

•Left door frame

•Frame of the major entry into the vehicle

•Left side of a vehicle without doors, such as a motorcycle.

What Is Required of the Manufacturer?

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The manufacturer is not required

to refund you for any non-

manufacturer items that were

installed by you, the dealership, or

anyone else. It is however

obligated to reimburse you for a

different official fees that you paid

when you purchased the vehicle.

From this amount, the

manufacturer is entitled to deduct

a mileage offset. The mileage

offset is calculated by determining

which of the vehicle’s repair

attempts is the first repair for the

problem that caused your car to

become a lemon. The mileage on

the car at the first repair attempt is

then divided by 120,000 and then

multiplied by the automobile’s

purchase price.

$The buyback amount is includes

the entire amount “paid or

payable” for the vehicle. In other

words, it must give you enough

money to compensate you for your

down payment and all of your

monthly payments towards the

vehicle and also to pay off the

vehicle’s loan. It is not however

required to pay any late charges

or other penalties that a consumer

might have incurred under loan

agreement.

The amount the manufacturer

pays must include compensation

for any transportation charges that

you paid when you purchased the

automobile, along with any

charges for manufacturer-installed

options and manufacturer items

installed by the dealership.

Vehicle Buybacks

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Regardless of whether a manufacturer replaces or buys

back your lemon automobile, it must also pay you for any

incidental damages that you suffered as a result of your

automobile’s defects and repairs.

Basically, the manufacturer is obligated to pay you for any

damages or harm that were clearly and directly caused by

the vehicle’s defects. You can recover compensation for

any repair expenses, towing charges, rental or other

replacement vehicle charges, cab fare, etc. that you

actually paid. If you are on hourly wage employee, then

you can probably also recover any wages that you may

have lost from having the take your car to and from the

repair facility, and you can probably also recover

damages for pain and suffering and personal injury if your

vehicle’s defect resulted in you being physically harmed.

Recovery of Incidental Damages

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$

New Vehicles:If you choose to get a refund, you will receive the full contract price of the vehicle including all credits and allowances for any trade-in vehicle,

but a reasonable allowance for use will be deducted.

The use allowance depends upon the vehicle's purchase price and mileage.

For vehicles other than motorcycles, use this formula:

contract price / 100,000 x mileage (contract price divided by 100,000 multiplied by mileage)

For motorcycles the formula is:

contract price / 25,000 x mileage (contract price divided by 25,000 multiplied by mileage)

Refund

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$

Leased Vehicles:If you choose to get a refund, you will receive the total lease payments you made under the agreement.

A reasonable allowance for use will be deducted based on the following formula:

total payments made / 100,000 x mileage (total payments made divided by 100,000 multiplied by mileage)

Refund

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Contact us

801 N. Brand Blvd. Suite 210

Glendale, CA 91203

Tel. (818) 553-1000

Fax (818) 553-1005

www.facebook.com/MargarianLaw

www.linkedin.com/company/margarian-law

https://www.youtube.com/user/dealerfraudlawyer

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For further information visit:

http://www.dca.ca.gov/acp/buyback.shtml

http://www.mass.gov/ocabr/consumer-rights-and-resources/autos/lemon-laws/new-leased-lemon-law.html

http://dealerfraud.org/

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THANK YOU!