Lemon Law Buyback

What Is a Lemon Law Buyback?

A lemon law buyback is the most common remedy under the Song-Beverly Consumer Warranty Act. When your vehicle qualifies as a lemon, the manufacturer is required to repurchase it from you at the full price you paid, plus additional costs.

What You Receive in a Buyback

The Mileage Offset

The one deduction the manufacturer can take is a mileage offset — a charge for the miles you drove before the first repair attempt for the defect. The formula is:

Example: If you bought a $40,000 vehicle and had 5,000 miles on it at the first repair attempt, the offset would be $40,000 × (5,000 ÷ 120,000) = $1,667. Your refund would be $38,333 plus taxes, fees, and incidental costs.

Buyback vs. Other Remedies

A buyback isn't your only option. You can also choose a replacement vehicle or negotiate a cash-and-keep settlement. Which option is best depends on your situation:

• Buyback is ideal when you want to walk away from the vehicle entirely and get your money back
• Replacement works when you like the model but got a bad unit
• Cash-and-keep makes sense when the defect is annoying but you still want the car

How Long Does a Buyback Take?

Most buyback cases are resolved in 30 to 90 days. The process involves filing a demand, negotiating with the manufacturer, and completing the paperwork. Read our detailed guide on how long a lemon law case takes.

Do I Qualify for a Buyback?

You may qualify for a lemon law buyback if your vehicle meets these criteria:

• Purchased or leased in California with a manufacturer's warranty
• Has a substantial defect that impairs use, value, or safety
• The defect has been repaired 2+ times (safety) or 4+ times (other), or the vehicle was out of service for 30+ days

Not sure if you qualify? Get a free case evaluation — we'll review your repair records and tell you exactly what your vehicle is worth.