How Do I Get A Refund Or Replacement From The Manufacturer?

Replacement ­ The manufacturer may offer to replace your original vehicle; however, you do not have to accept the offer. You may say NO and demand a refund.

If you do accept a replacement vehicle, and the original vehicle was financed by the manufacturer, its subsidiary or agent, the manufacturer must make sure that you are not required to enter into any refinancing agreement that would create any financial obligations upon you beyond those of the original financing agreement. It is still up to you to have the title and registration transferred to your new vehicle.

Refund For Purchased Vehicles ­ If you choose to receive a refund, you will receive the full purchase price of your original motor vehicle, minus a reasonable allowance for vehicle use.

The full refund includes, but is not limited to:

  • credits and allowances for any trade­in vehicle
  • costs of any options and other modifications added by the manufacturer or its authorized dealer
  • costs of sales tax, license and registration fees, and finance charges.
  • charges for renting a similar vehicle while the original vehicle was out of service because of the defect
  • expert fees and
  • charges for extended warranty coverage`s provided by the manufacturer, its subsidiary or agent.

The reasonable allowance for vehicle use equals the purchase price multiplied by the mileage at the time the vehicle was first brought to the dealer or manufacturer for repair of the defect divided by 120,000 miles. For example, the reasonable allowance for a $12,000 vehicle with 10,000 miles would be calculated as:

12,000 X 10,000 = 120,000,000
120,000,000/120,000 = 1,000

In this example, the reasonable allowance for vehicle use is $1,000. You may also be charged for any physical damage the vehicle has sustained.

Refund for Leased Vehicles ­ If your vehicle is leased, you can receive a full refund for any leasing fees less a reasonable allowance for vehicle use. Under the Lemon Law, your lease agreement ends when you return the vehicle. You cannot be charged any penalties for ending the lease early.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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