Buyback and Repair Under Lemon Law

Published on June 2016 | Categories: Types, Business/Law, Court Filings | Downloads: 64 | Comments: 0 | Views: 187
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You are protected and you don’t have to drive a lemon. Find out what you can do with your lemon car.

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Content

BUYBACK AND REPAIR
UNDER LEMON LAW
finition

1

Table of content
Know the Lemon Law of Your State

Conditions for Lemon Law
Vehicles not covered by Lemon Law
Automobile Replacements

What Is Required of the Manufacturer?
Vehicle Buybacks
Recovery of Incidental Damages

Refund
Our contacts

2

Know the Lemon Law of Your State
The views of a lemon are different in every state.
You should find out what your state says about your car
and if it constitutes under the lemon law.
There are state laws and federal laws that protect the consumer
from automobile fraud and from being sold a lemon.

3

Conditions for Lemon Law

The vehicle must have
a serious defect or
abnormal condition.

The problem must
substantially impair
the usage or value
of the vehicle, or
produce a serious
safety hazard.

While the vehicle is
under warranty, the
problem must be
reported to the
dealer or
manufacturer.

A reasonable
number of attempts
must be made to fix
the problem.

Written notice must
be given to the
manufacturer, who
gets one last
chance to remedy
the complaint.

4

Vehicles not covered by Lemon Law
auto-homes;

vehicles built primarily for off-road use;

vehicles used primarily for business
purposes;
vehicles with defects caused by owner
negligence, accidents, vandalism, or
unauthorized repair of the vehicle by a
person other than the manufacturer or
authorized agent;

vehicles leased before July 1, 1997.

5

Automobile Replacements

Under California’s lemon law, when a manufacturer provides you with a replacement
vehicle, it must also pay all of the collateral charges typically accompanying the sale. This
includes any sales tax, license fees, registration, and other official fees. The manufacturer
cannot force you to pay any of these amounts.

A manufacturer must also pay any “incidental damages” caused by your vehicle’s defects
and repairs. Incidental damages are discussed in greater detail below.

6

Automobile Replacements
One of the first and most important things to know about the lemon law’s replacement
remedy is that it is entirely optional for both the consumer and the automobile
manufacturer. A lemon law replacement happens only when both parties agree on a
replacement, as opposed to a buyback. You cannot force a manufacturer to offer a
replacement if it doesn’t want to, and a manufacturer can’t force you to accept a
replacement. Either party can insist on a lemon law buyback if they choose to do so.

If the parties agree on a replacement, then the manufacturer must replace your defective
automobile with a new, substantially identical car, truck, or SUV. Further, the replacement
must be delivered to you with all of the warranties that typically accompany that type of
new automobile. In other words, your warranty period restarts.

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What Is Required of the Manufacturer?
The manufacturer upon reacquiring a vehicle because of
specified warranty defect(s) must:
•Request the Certificate of Title and Registration Certificate be
marked "Lemon Law Buyback."

•Title the vehicle in the manufacturer's name.
The manufacturer will attach a decal to the vehicle. The decal
will read "Lemon Law Buyback" and will be affixed to one of
the following:

•Left door frame
•Frame of the major entry into the vehicle
•Left side of a vehicle without doors, such as a motorcycle.

8

9

Vehicle Buybacks
The buyback amount is includes
the entire amount “paid or
payable” for the vehicle. In other
words, it must give you enough
money to compensate you for your
down payment and all of your
monthly payments towards the
vehicle and also to pay off the
vehicle’s loan. It is not however
required to pay any late charges
or other penalties that a consumer
might have incurred under loan
agreement.
The amount the manufacturer
pays must include compensation
for any transportation charges that
you paid when you purchased the
automobile, along with any
charges for manufacturer-installed
options and manufacturer items
installed by the dealership.

The manufacturer is not required
to refund you for any nonmanufacturer items that were
installed by you, the dealership, or
anyone else. It is however
obligated to reimburse you for a
different official fees that you paid
when you purchased the vehicle.
From
this
amount,
the
manufacturer is entitled to deduct
a mileage offset. The mileage
offset is calculated by determining
which of the vehicle’s repair
attempts is the first repair for the
problem that caused your car to
become a lemon. The mileage on
the car at the first repair attempt is
then divided by 120,000 and then
multiplied by the automobile’s
purchase price.

$

Recovery of Incidental Damages
Regardless of whether a manufacturer replaces or buys
back your lemon automobile, it must also pay you for any
incidental damages that you suffered as a result of your
automobile’s defects and repairs.
Basically, the manufacturer is obligated to pay you for any
damages or harm that were clearly and directly caused by
the vehicle’s defects. You can recover compensation for
any repair expenses, towing charges, rental or other
replacement vehicle charges, cab fare, etc. that you
actually paid. If you are on hourly wage employee, then
you can probably also recover any wages that you may
have lost from having the take your car to and from the
repair facility, and you can probably also recover
damages for pain and suffering and personal injury if your
vehicle’s defect resulted in you being physically harmed.

10

11

Refund
$

New Vehicles:
If you choose to get a refund, you will receive the full contract price of the vehicle including all credits and allowances for any trade-in vehicle,
but a reasonable allowance for use will be deducted.
The use allowance depends upon the vehicle's purchase price and mileage.
For vehicles other than motorcycles, use this formula:
contract price / 100,000 x mileage (contract price divided by 100,000 multiplied by mileage)
For motorcycles the formula is:
contract price / 25,000 x mileage (contract price divided by 25,000 multiplied by mileage)

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Refund
$

Leased Vehicles:
If you choose to get a refund, you will receive the total lease payments you made under the agreement.
A reasonable allowance for use will be deducted based on the following formula:
total payments made / 100,000 x mileage (total payments made divided by 100,000 multiplied by mileage)

13

Contact us
01

801 N. Brand Blvd. Suite 210
Glendale, CA 91203

Tel. (818) 553-1000
Fax (818) 553-1005
www.facebook.com/MargarianLaw
www.linkedin.com/company/margarian-law
https://www.youtube.com/user/dealerfraudlawyer

For further information visit:

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http://www.dca.ca.gov/acp/buyback.shtml

01

http://www.mass.gov/ocabr/consumer-rights-and-resources/autos/lemon-laws/new-leased-lemon-law.html

http://dealerfraud.org/

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THANK YOU!

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