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.

Other Arkansas Lemon Law FAQs

Q: Who Is Covered Under The Lemon Law?
A: Any consumer who buys or leases, and registers a new motor vehicle in the State of Arkansas is covered by the Lemon Law. If the vehicle is transferred to someone else … More
Q: What Vehicles Are Covered Under The Lemon Law?
A: The following table summarizes what is covered, how many times the vehicle has to be repaired for the same defect and the warranty period. Vehicles Covered Repair … More
Q: Under What Conditions Does The State Consider My Vehicle A Lemon?
A: The law creates what is known in legal terminology as a presumption; the Lemon Law presumes that you are entitled to a refund or replacement if the manufacturer or its … More
Q: Getting Your Vehicle Repaired
A: It is very important that you report any defect or condition directly to the manufacturer or to the dealer immediately. It is also important that you keep all repair … More
Q: Who Pays For The Repairs?
A: Most manufacturers` warranties on purchased vehicles cover repairs for at least the first year following the original delivery date or the first 12,000 miles, … More
Q: How Long Should The Repair Attempt Process Take?
A: The Lemon Law allows the manufacturer a reasonable number of attempts to repair or correct the defect. A reasonable number means three (3) repair attempts for the same … More
Q: How Can I Assert My Rights?
A: If the manufacturer does not accept your Lemon Law claim and will not refund your money or replace your vehicle, you must file for a hearing through the manufacturer`s … More
Q: Can The Manufacturer Resell Or Re-Lease A Lemon Vehicle?
A: Yes, but the dealer or leasing company must give the consumer who buys such a vehicle a written notice stating that the vehicle was returned to the manufacturer … More
Q: What Is The Law On Odometer Rollbacks?
A: It is illegal to tamper with an odometer. It is also illegal to sell or advertise any device for tampering with an odometer. Additionally, it is unlawful to operate a … More
Q: What If My Problem Does Not Fit The Requirements Of My State's Lemon Law?
A: You still may be able to invoke the Lemon Law as long as you can justify that the number of repair attempts or days out of service you encountered were unreasonable. … More