What Is Lemon Law Buyback and How to Calculate It

Buying a defective car is a stressfulexperience. It ruins your comfort and risks your life while driving. Though you can fix some issues, there are instances where repair attempts won’t work. In such a case, the manufacturer must reacquire the lemon car through lemon law buyback.

What is lemon Law Buyback?

A lemon law buyback is when the manufacturer is forced or voluntarily reacquires the vehicle. That’s due to warranty defects that seriously impair your car’s use, safety, and value. It’s usually the climax of a lemon law dispute.

How is buyback calculated?

Each state has their unique way of calculating for repurchase under the lemon law. The aim is to refund you all the money you spend to purchase or lease the defective vehicle. A lemon law buyback calculator is the most effective way to determine the amount.

Buybacks result in a full refund of the money you spent towards the car’s purchase or lease, including the down payment, incidental expenses, monthly payments, and registration. Also, you’ll get all outstanding balances on loans related to the car.

However, there is an exception known as the usage fee, which the manufacturer deducts. The amount depends on the time the car was functioning well without issues and the value of miles placed on it before the first repair. Also, you might be responsible for applicable taxes.

You’ll either get a check or equity into your replacement vehicle. A replacement is substantially identical to the lemon car without lemon flaws. In some cases, you might get partial costs. The amount will depend on your state rules and guidelines for calculating lemon law buyback.

What happens after buyback?

After a buyback, the manufacturer is given a branded title that declares the car to be a lemon or salvage. They will have to inspect and repair the vehicle for the lemon title car for you to drive legally. The designations vary between states, and you should know about them.

Benefits of a Lemon Law Buyback

A buyback provides you with a full refund of the purchase price of the lemon and the taxes and fees. Also, it absolves all vehicle liability and gives you a waiver of your loan balance. You’ll have a chance to start over with a new vehicle without worrying about issues or repair expenses.

How to know if you’re eligible for a buyback                

A lemon law buyback takes into consideration factors that you must fulfil. You’ll be eligible if:

• The original warranty covered the car at the time of purchase

• The vehicle had defects that impacted its safety or value.

• They cannot fix the issues after three documented repairs.

• The issue/problem happened while the original manufacturer’s warranty was in effect.

If you’re unsure whether your car qualifies as a lemon, you should consult an experienced lemon law attorney.


One of the great features of buying and owning a car is the manufacturer’s warranty. If the vehicle develops issues, you can take it to the manufacturer, and they’ll fix it. If the repairs fail, your car becomes a lemon, subject to a lemon law buyback. Knowing the above information about lemon law buyback will give your the knowledge and skills for your claim.


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