There’s nothing more discouraging than finding out that the car that you have purchased is a lemon. Fortunately, there are laws in place to protect consumers from being taken advantage of by irresponsible manufacturers.

When a car manufacturer or maker of a consumer product fails to meet their warranty promises, it can leave you feeling like you have been taken for a ride. If all reasonable attempts to fix the issue with your vehicle have failed, there is something you can do to get the compensation that you deserve.

Speaking to professional Lemon law lawyers can help you find out about your rights as a consumer. In most cases, the manufacturer will be required to either refund, replace or provide cash compensation when they have sold you a lemon. They can take you through the process and ensure that you are treated fairly.

Refunds & Buybacks

Purchased Vehicles

If the car you’ve purchased turns out to be a lemon, here are the fees and expenses that should be fully refunded:

• All of your monthly payments including your down payment
• All charges, taxes, fees and expenses incurred for extended warranties
• Incidental expenses including the cost of a rental car or a towing fee
• The balance of your loan amount

Leased Vehicles

If, on the other hand, your vehicle is leased, here is what you’re owed:

• Your lease payments and downpayment
• All charges, taxes, leasing fees and warranty payments
• Incidental expenses including the cost of a rental car or a towing fee
• Release from further lease obligations

Replacement

A manufacturer may choose to replace your car or product. In this case, regardless of whether the vehicle is leased or purchased, the replacement must be “substantially identical” to the original vehicle. This means that the replacement must be the same as the original vehicle at the time of purchase, not the time when issues first began.

You should be given the identical service agreement and warranty as you had on the original vehicle. A refund for any fees, rental expenses or towing costs should be made in full.

Mileage Offset

The manufacturer may try to deduct the driving mileage for when the car was operating without issue. There is a specific formula to calculate these costs. The manufacturer will not want to pay for the cost of the vehicle when it was working properly so they may try to lower their settlement by issuing a mileage offset.

The formula is a standard equation that is used as a standard in every industry. The original purchase price will be multiplied by the mileage accumulated prior to any vehicle issues and then divided by the standard 120,000 lifetime miles. For example:

Purchase Price = $30,000 X Mileage = 10,000 / Lifetime miles = 120,000

• 30,000 X 10,000 / 120,000 = $2500

This amount will then be deducted from your entire compensation amount.

Cash Compensation

If you think that your car is a lemon but the manufacturer doesn’t qualify it as a complete write-off, you may still be entitled to cash compensation. Speak to a lemon law attorney to find out how to get the best payout for your vehicle even if it doesn’t qualify as a manufacturing lemon.

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