California Lemon Law Buyback Calculator
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This calculator provides an estimate based on California's Song-Beverly Consumer Warranty Act formula. Actual buyback amounts may vary based on specific case facts, manufacturer negotiations, legal fees, and court rulings. This tool is for informational purposes only and does not constitute legal advice. Consult a qualified California lemon law attorney for your specific situation.
What is the California Lemon Law Buyback Formula?
Under California's Song-Beverly Consumer Warranty Act, if your vehicle is deemed a "lemon," the manufacturer must repurchase it from you. The buyback amount is calculated using a specific formula designed to make you financially whole while accounting for the use you received from the vehicle before the defect first appeared.
Buyback Amount = Total Amount Paid − Usage Fee
Usage Fee = (Miles at First Repair ÷ 120,000) × Purchase Price
Where: 120,000 miles = expected lifespan under California law
What's Included in Total Amount Paid?
- Purchase price — The original vehicle price
- Down payment — Any initial payment made
- Monthly payments — All loan or lease payments made
- Sales tax & registration fees — DMV fees, taxes paid
- Finance charges — Interest paid on financing
- Incidental costs — Towing, rental cars, repairs paid out-of-pocket
Understanding the Usage Fee (Mileage Offset)
The usage fee is the only deduction from your buyback amount. It represents the value of the miles you drove before the first repair attempt for the defect. The formula uses 120,000 miles as the standard expected lifespan of a vehicle under California law.
Example Calculation
- Purchase price: $38,000
- Total paid (with taxes, fees, payments): $42,000
- Miles at first repair: 6,000
- Usage fee: (6,000 ÷ 120,000) × $38,000 = $1,900
- Buyback amount: $42,000 − $1,900 = $40,100
What Qualifies for California Lemon Law?
- Defect occurred within the manufacturer's warranty period
- Reasonable number of repair attempts (typically 2+ for safety defects, 4+ for others)
- Vehicle out of service for 30+ cumulative days
- Defect substantially impairs use, value, or safety
Leased Vehicles & Used Cars
Leased vehicles are covered under California Lemon Law. The buyback includes refund of down payment, all lease payments made, and termination of the lease agreement. Used vehicles can qualify if they're still under the manufacturer's original warranty or a certified pre-owned (CPO) warranty.
Manufacturer Responsibilities
- Repurchase the vehicle at the buyback amount
- Pay off any outstanding loan balance
- Reimburse incidental damages and expenses
- Pay consumer's attorney fees in successful cases
Frequently Asked Questions
- Do I need a lawyer for a lemon law claim? — While not required, an experienced lemon law attorney can significantly improve your outcome. In successful cases, the manufacturer pays your attorney fees.
- How long does the process take? — Cases can resolve in a few months. Complex cases may take longer.
- What if the manufacturer disputes my claim? — An attorney can help negotiate or litigate to protect your rights.
- Does this apply to motorcycles or RVs? — Yes, California Lemon Law covers motorcycles, RVs, boats, and other consumer goods under warranty.
- What's the time limit to file a claim? — Claims must generally be filed within 4 years of the defect being discovered, but acting sooner is better.