Lemon Law Calculator

Lemon Law Buyback Calculator

Estimated Refund Summary

Gross Total Paid: $0.00

Mileage Offset (Usage Deduction): -$0.00

Total Estimated Buyback: $0.00

*Mileage offset calculated based on the standard 120,000-mile life expectancy formula used in many state statutes.

function calculateLemonLawRefund() { var price = parseFloat(document.getElementById('purchasePrice').value) || 0; var taxes = parseFloat(document.getElementById('taxesFees').value) || 0; var miles = parseFloat(document.getElementById('mileageAtRepair').value) || 0; var rebates = parseFloat(document.getElementById('rebates').value) || 0; var incidental = parseFloat(document.getElementById('incidentals').value) || 0; if (price <= 0) { alert("Please enter a valid purchase price."); return; } // Standard Lemon Law Offset Formula: (Mileage at 1st repair / 120,000) * Purchase Price var mileageDeduction = (miles / 120000) * price; // Total paid by consumer (Price + Taxes + Incidentals – Rebates) var grossTotal = (price + taxes + incidental) – rebates; // Final Refund var finalRefund = grossTotal – mileageDeduction; if (finalRefund < 0) finalRefund = 0; document.getElementById('grossTotal').innerText = '$' + grossTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mileageOffset').innerText = '-$' + mileageDeduction.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('netRefund').innerText = '$' + finalRefund.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultArea').style.display = 'block'; }

Understanding the Lemon Law Buyback Calculation

If you have purchased a vehicle that has significant defects which the manufacturer cannot repair after a "reasonable number of attempts," you may be entitled to a lemon law buyback. A buyback is essentially a refund of the money you spent on the vehicle, minus a specific deduction for the time you drove it before the trouble began.

What is the Mileage Offset?

The most confusing part of a lemon law settlement is often the mileage offset or "usage deduction." In most states, the manufacturer is allowed to deduct a fee for the mileage you put on the car before you first brought it in for the defect that eventually made it a "lemon."

The standard formula used by many courts is:

(Mileage at 1st Repair Attempt / 120,000) × Purchase Price = Usage Deduction

What Is Included in a Refund?

A comprehensive lemon law refund typically covers:

• The full base purchase price of the vehicle.
• Sales tax and license/registration fees.
• Manufacturer-installed options and accessories.
• Finance charges (interest paid on the loan).
• Incidental expenses such as towing fees or rental car costs incurred due to the defect.

A Practical Example

Imagine you bought a car for $30,000. You paid $2,500 in taxes and fees. At 6,000 miles, the transmission failed for the first time. After four failed repair attempts, you filed a lemon law claim.

1. Usage Deduction: (6,000 / 120,000) = 0.05. Then 0.05 × $30,000 = $1,500.
2. Gross Total: $30,000 (Price) + $2,500 (Taxes) = $32,500.
3. Final Buyback: $32,500 – $1,500 = $31,000.

Important Considerations

Laws vary significantly by state. Some states use a different denominator (like 100,000 miles) for the mileage offset, and some states do not include finance charges in the refund. This calculator provides a high-level estimate based on the most common legal frameworks. Always consult with a qualified lemon law attorney to understand the specific statutes in your jurisdiction.