How Does The Buyback Program Work?

If your vehicle is determined to be a “lemon,” you are entitled to restitution from the manufacturer. While many consumers assume this is a simple trade-in process, a legal Lemon Law Buyback is a detailed financial accounting designed to make you whole.

At Johnson & Buxton — The Lemon Law Guys, we understand the math behind these settlements better than anyone. Having previously represented the manufacturers in these negotiations, we know where they try to “nickle and dime” consumers and how to ensure you receive the full amount allowed under the law.

1. The Components of Your Refund

A standard repurchase (buyback) includes more than just the current value of the car. The manufacturer is typically required to compensate you for:

• The Full Purchase Price: This includes your down payment and all monthly payments made toward the loan or lease.
• Official Fees: Reimbursement for sales tax, license fees, and registration costs.
• Collateral Damages: You may also be entitled to compensation for towing, rental car expenses, and repair costs incurred due to the defect.
• Loan Payoff: The manufacturer must pay off the remaining balance of your auto loan directly to the lender.

2. The “Mileage Offset” (The Usage Deduction)

California law allows manufacturers to make a deduction for the miles you drove before the first repair attempt for the defect.

The Insider Advantage: Manufacturers often try to push this date forward to increase their deduction. We use our experience to verify the exact mileage at the first qualifying repair visit to keep as much money in your pocket as possible.

3. Civil Penalties: Getting Up to 3x Your Car’s Value

One of the most powerful aspects of the law is the provision for Civil Penalties. If a manufacturer “unreasonably” refuses to buy back your vehicle when it is clear it qualifies as a lemon, a court may order them to pay a penalty of up to two times your actual damages (bringing your total recovery to three times the value of the car).

• Manufacturers rarely offer these penalties willingly; it takes an experienced legal team to prove “willful misconduct” or “unreasonable” rejection of a claim.

4. What Happens to the Car?

Once the buyback is complete, the manufacturer registers the vehicle in its own name. They must then permanently brand the title as a “Lemon Law Buyback” before the vehicle can ever be sold again.

Why You Can Afford The Lemon Law Guys

You should never let the fear of legal costs prevent you from standing up to a multi-billion dollar automaker.

• No Cost to You: Under the law’s fee-shifting provisions, the manufacturer is responsible for paying all of your legal fees if you win.
• The Guarantee: At our firm, you will not incur fees even if your claim is unsuccessful. Your recovery belongs to you—our hourly legal fees do not come out of your settlement.

“I’m very glad that I chose The Lemon Law Guys… The settlement was higher than expected. I am extremely happy with their excellent work.” — Mike McHugh, Client Review

Ready to get that lemon off your hands? Schedule Your Free Insider Case Evaluation