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Lion Lemon

California Lemon Law Buyback Calculator

Get an accurate estimate of what the manufacturer owes you under California's lemon law using the official state formula.

California Lemon Law Buyback Formula Explained

Understanding how your buyback value is calculated under California Civil Code Section 1793.2(d)(2)(B)

Official Buyback Formula

Buyback Amount = Purchase Price - (Mileage Offset × Purchase Price)

Where:
• Mileage Offset = Miles driven before first repair attempt ÷ 120,000
• Purchase Price = Original price paid (including taxes, fees, and options)
• 120,000 = Statutory useful life of vehicle in miles

What's Included in Purchase Price

  • Base vehicle price
  • Factory options and accessories
  • Sales tax paid
  • License and registration fees
  • Finance charges (if paid in cash)

What's NOT Included

  • Dealer-installed accessories
  • Extended warranties
  • Service contracts
  • Insurance premiums
  • Trade-in value of old vehicle

Step-by-Step Calculation Process

Follow these steps to calculate your lemon law buyback amount

1

Gather Your Purchase Information

Collect your original purchase contract, sales receipt, and any financing documents.

You need: Total amount paid (including taxes, fees, and options)
2

Determine Miles at First Repair

Find the odometer reading when you first brought the vehicle in for the problem that makes it a lemon.

Important: Use the mileage at the FIRST repair attempt for the qualifying defect
3

Calculate the Mileage Offset

Divide the miles at first repair by 120,000 (the statutory useful life).

Mileage Offset = Miles at First Repair ÷ 120,000
4

Apply the Formula

Calculate your buyback amount using the official formula.

Buyback = Purchase Price - (Mileage Offset × Purchase Price)

Buyback Calculation Examples

See how the formula works with real-world scenarios

Example 1: Low Mileage Vehicle

Purchase Price: $35,000
Miles at First Repair: 5,000 miles

Calculation:
Mileage Offset = 5,000 ÷ 120,000 = 0.042
Usage Deduction = $35,000 × 0.042 = $1,458
Buyback Amount = $35,000 - $1,458 = $33,542

Example 2: Higher Mileage Vehicle

Purchase Price: $45,000
Miles at First Repair: 15,000 miles

Calculation:
Mileage Offset = 15,000 ÷ 120,000 = 0.125
Usage Deduction = $45,000 × 0.125 = $5,625
Buyback Amount = $45,000 - $5,625 = $39,375

Key Takeaways from Examples

  • Lower mileage at first repair = higher buyback amount
  • The formula is designed to be fair - you get credit for the useful life remaining
  • Documentation of the first repair attempt is crucial for accurate calculation

Important Considerations

Accurate Documentation

Keep all repair orders, receipts, and correspondence. The mileage at the first repair attempt is critical for calculation accuracy.

Professional Evaluation

While our calculator provides estimates, consult with a qualified lemon law attorney for case-specific advice and representation.

Additional Damages

You may be entitled to additional compensation including attorney fees, costs, and civil penalties beyond the buyback amount.

Frequently Asked Questions

What if I can't find the exact mileage at first repair?

Check your repair orders, service records, or contact the dealership. If unavailable, use the closest documented mileage, but note this may affect calculation accuracy.

Does the calculation include loan payoff?

The buyback amount is what the manufacturer owes you. If you have a loan, the manufacturer typically pays off the loan and gives you any remaining balance.

What if my vehicle has very high mileage?

The mileage offset caps at 100% of the purchase price, so you'll never owe money. However, high mileage significantly reduces the buyback amount.

Are there alternatives to buyback?

Yes, you may choose replacement instead of buyback. The manufacturer must provide a comparable new vehicle with similar options.

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