Free Online Legal Resources
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.
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.