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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:
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.
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.