Lemon Law

What If I Am Awarded A Repurchase?

If you are awarded a repurchase of your vehicle, the arbitrator will determine your refund based on the following:

  • if you purchased the vehicle, you will be refunded the cash price of the vehicle in the sales agreement (minus any manufacturer rebate) ­ if you have a loan balance, the lender will be paid from your refund;

  • if you leased the vehicle, you will be refunded the total of all lease payments that you made, including inception and security deposit payments (not including any manufacturer rebate) ­ the manufacturer will be responsible for any remaining lease obligations.

NOTE: if you are a second or subsequent owner, a repurchase award will be based on your purchase price ­ not the original owner`s purchase price.

The following types of items are also included in a refund of either leased or purchased vehicles:

  • collateral charges ­ sales or lease related charges including sales and use tax, finance charges, initial and monthly lease payments, dealer preparation and transportation charges, prorated license, registration and title fees, prorated insurance costs, nonrefundable portions of credit life and disability insurance, service contracts, undercoating, rustproofing and other factory or dealer installed options;
  • incidental costs ­ reasonable expenses paid by you related to repairs including costs of towing and obtaining alternate transportation.
  • legal fees ­ if the manufacturer was represented by counsel, the arbitrator will also award reasonable costs and attorney`s fees which you may have incurred in connection with the arbitration process.

Your refund will be the total of the award less an offset for use and less any lienholder interests in the vehicle. If your vehicle is leased, your refund will be the award total less an offset for use and the manufacturer will be responsible for paying off your lease obligation.