What Is An Offset For Use?
The offset for use is computed by multiplying the number of miles directly attributable to use times the purchase price (in the instance of a lease, purchase price is the vehicle`s capitalized cost if disclosed in the lease or if not disclosed then the manufacturer`s suggested retail price) and dividing by 120,000 (Note: divide by 25,000 for a motorcycle).
Example: Based on a purchase price of $12,000 and 10,000 miles attributable to a consumer`s use, the reasonable offset for use would be:
($12,000) x (10,000 miles) = $1,000
NOTE: if you are a second or subsequent owner: a repurchase offset is based on your purchase price and a replacement offset is based on the original purchase price of the vehicle (as you will receive a new vehicle for the used vehicle you purchased).
IMPORTANT: Be certain that you understand how your offset for use will be calculated. If you are awarded a replacement vehicle, you must pay the offset for use before receiving the new vehicle. This may affect your decision whether to choose repurchase rather than a replacement.
If you are awarded a repurchase, the offset for use will be deducted from your refund before any existing loan obligations are paid. It is possible in situations of large loan balances and high mileage that a refund will not be enough to pay off the loan; the remaining balance would still be your responsibility. Similarly, if you have a lease with low payments and you have put substantial mileage on the vehicle, your `offset` could be larger than your refund.
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.
Additional Lemon Law Articles
- What Is The Lemon Law?
- What Vehicles Are Covered Under The Lemon Law?
- What Vehicles Are Not Covered Under Lemon Law?
- What Is A Lemon?
- What Is The Warranty Period?
- I Have A Lemon. What Should I Do?
- What Information Needs To Be Included On The Request For Arbitration Form?
- What Is An Arbitration Hearing?
- Scheduling An Arbitration Hearing
- Who Will Attend The Arbitration Hearing?
- What Must I Prove At The Arbitration Hearing?
- What Records Do I Need For Arbitration?
- How Can I Get Missing Documents?
- Do I Need An Attorney?
- What Happens After I Request An Arbitration Hearing?
- What Is The Manufacturer's Statement?
- What Is The Manufacturer's Right To View The Vehicle?
- What If My Claim Is Resolved Before The Hearing?
- When Does The Arbitration Decision Take Place?
- Replacement Or Repurchase?
- What If I Am Awarded A Replacement?
- What If I Am Awarded A Repurchase?
- What Is Compliance And What Am I Required To Do When Returning The Vehicle?
- Where Can I Get More Information About The Lemon Law And Obtain Request For Arbitration Forms?
- Where Can I Get Lemon Law Arbitration Videos And Tapes?