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.
Speak to an Experienced Lemon Law Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified lemon lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local lemon attorney to discuss your specific legal situation.
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?