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Estimate your lemon law recovery for a defective vehicle. Our free calculator applies your state's specific lemon law — repair attempt thresholds, days out of service requirements, mileage limits, and buyback formulas — to your vehicle's defect history.
A buyback refunds your vehicle’s purchase price and incidental costs (tax, registration, finance charges, towing), reduced by a mileage offset for the use you got before the first repair attempt. A common formula divides pre-defect mileage by 120,000 and multiplies by the purchase price. The calculator above applies this approach to your numbers; your state’s page shows the exact rule where you live.
The mileage offset is a deduction for the value you received from driving the car before the defect appeared. Under the widely used formula, offset = (miles at first repair attempt ÷ 120,000) × purchase price. On a $30,000 car with 6,000 miles at the first repair, the offset is about $1,500. A few states do not apply any mileage offset.
Generally, a vehicle is a lemon if it has a substantial, warranty-covered defect that the dealer cannot fix after a reasonable number of attempts — most states presume this after 3–4 repair attempts for the same problem, or after roughly 30 cumulative days out of service, within an early time/mileage window.
Most states presume a lemon after 3–4 repair attempts for the same substantial defect. For serious safety defects that could cause death or serious injury, some states lower that to 1–2 attempts. Exact thresholds vary by state — see your state’s lemon law page.
It depends on your state. Only a minority of states extend their lemon law to used vehicles. If your state doesn’t, the federal Magnuson-Moss Warranty Act may still cover a used vehicle sold with a written warranty, and it also shifts attorney fees to the manufacturer if you win.
Leased vehicles are covered in most states because the manufacturer’s warranty still applies. Coverage for RVs and boats varies significantly by state — some include them, many exclude them. Your state’s lemon law page notes what’s covered where you live.
You are not required to have a lawyer, but it usually helps. Most state lemon laws (and the federal Magnuson-Moss Act) require the manufacturer to pay your attorney fees if you win, so lemon law attorneys typically take these cases on contingency with no upfront cost to you.
Deadlines vary by state, commonly running a few years from purchase or from when the defect should have been discovered, and often tied to the warranty period. Because the eligibility window and statute of limitations differ by state, check your state’s page and act before your warranty expires.
When a vehicle qualifies, most states require the manufacturer to repurchase or replace it, and the choice between a cash refund and a comparable replacement vehicle is typically yours. Both remedies account for the mileage offset.
Generally yes. Stopping payments can hurt your credit and complicate the claim, and continuing to drive is usually fine unless the defect is a safety hazard. Keep every repair order and keep the vehicle available for inspection while your claim is pending.
Outcomes vary widely because the buyback is driven by your specific purchase price, mileage, and repair history rather than a fixed “average.” A buyback returns most of what you paid minus the mileage offset; cash-and-keep settlements are typically smaller. Use the calculator above for an estimate based on your own numbers.
More than most owners claim: the down payment, every monthly payment, the remaining payoff, sales tax, registration and government fees, and typically dealer-added items financed in the contract. Incidentals — rentals, towing, out-of-pocket repairs — are recoverable on top under most statutes. Pull the contract and list every line before accepting anyone’s total.
How a Lemon Law Buyback Is Calculated
If your vehicle qualifies as a lemon, the manufacturer typically must buy it back. A buyback refunds what you paid — the purchase price and incidental costs — reduced only by a “mileage offset” for the use you got before the defect first appeared.
Purchase price refund
The core of a buyback is a refund of the vehicle’s purchase price, including the down payment and the payments you have made, and payoff of the remaining loan balance.
Mileage offset
Most lemon laws subtract a use-based offset. A widely used formula divides the miles driven before your first repair attempt by 120,000, then multiplies by the purchase price. The fewer miles before the defect, the smaller the offset.
Incidental & consequential costs
You can usually add back sales tax, registration and license fees, finance charges, and towing or rental costs caused by the defect.
Attorney fees
Most state lemon laws are fee-shifting — if you win, the manufacturer pays your attorney fees, so the buyback stays in your pocket.
Illustrative example — $35,000 vehicle, 6,000 miles at first repair
Purchase price
$35,000
Mileage offset (6,000 ÷ 120,000 × $35,000)
−$1,750
Incidental costs (tax, registration, towing)
+$2,300
Estimated buyback
$35,550
Every state sets its own offset and coverage rules — see your state’s lemon law calculator page for the exact figures, and use the calculator above to estimate your own buyback.
The Buyback Formula, Step by Step
A lemon law buyback = everything you paid for the vehicle (down payment, monthly payments, loan payoff, taxes, and fees) plus incidental costs (towing, rentals), minus a mileage offset for your use before the first repair attempt. The most cited offset formula — California’s — is purchase price × (miles at first repair ÷ 120,000). Many states also require the manufacturer to pay your attorney fees. The free calculator applies your state’s version.
A buyback unwinds the purchase: the manufacturer repurchases the vehicle, and the formula decides how much of your money comes back.
1
Total what you actually paid
Down payment + every monthly payment made + the remaining loan payoff + sales tax, registration, and official fees. On a lease: payments made plus drive-off costs. Dealer add-ons rolled into the contract (extended warranties, service contracts) are generally refundable too — pull the purchase contract and list every line.
2
Add incidental and consequential costs
Towing, rental cars during repair visits, rideshares to the dealer, even repair attempts you paid for out of pocket. Statutes expressly allow these — they are the most commonly forgotten money in buybacks. Receipts turn them from anecdotes into line items.
3
Compute the mileage (use) offset
The manufacturer deducts for your trouble-free use. California’s statutory formula — the model many negotiations reference — is: purchase price × (miles driven before the FIRST repair attempt for the defect ÷ 120,000). Only pre-problem miles count; everything you drove after the defect surfaced is on the manufacturer.
4
Subtract the offset, check the sanity
Amounts paid + incidentals − offset = the buyback. If the manufacturer’s number is lower, the discrepancy is nearly always in step 1 (missing line items) or step 3 (using current mileage instead of first-repair mileage — a favorite quiet error).
5
Attorney fees ride on top
Most state lemon laws are fee-shifting: a prevailing consumer’s reasonable attorney fees are paid by the manufacturer, on top of — not out of — the buyback. It is why lemon law attorneys commonly work without charging the consumer, and why manufacturers settle calculable claims.
Where a state statute lacks California’s explicit 120,000-mile formula, offsets become “reasonable use” negotiations, and manufacturers open high. Two backstops matter everywhere: the federal Magnuson-Moss Warranty Act, which supports warranty claims (with fee-shifting) even when a state presumption misses, and your repair-order paper trail, which is the evidence spine of any version of the claim.
What Qualifies a Vehicle as a Lemon
Lemon laws protect buyers when a manufacturer cannot fix a serious warranty defect within a reasonable number of tries. Most states apply a “presumption” once your repair history crosses certain thresholds.
1
A substantial defect
The problem must substantially impair the vehicle’s use, value, or safety — not a minor rattle or cosmetic issue. Brakes, steering, transmission, electrical, and stalling issues typically qualify.
2
Covered by the warranty
The defect must arise during the manufacturer’s original warranty period and be reported to an authorized dealer for repair.
3
A reasonable number of repair attempts
Most states presume a lemon after 3–4 failed repair attempts for the same defect (fewer for serious safety defects that could cause death or injury).
4
Or too many days out of service
Alternatively, many states presume a lemon if the vehicle is in the shop for a cumulative 30 or more days for warranty repairs.
5
Within the eligibility window
The presumption usually applies only during an early window — commonly the first 12–24 months or 12,000–24,000 miles, depending on the state.
Buyback vs. Replacement vs. Cash-and-Keep
When a manufacturer concedes a lemon, you generally have more than one option for how to resolve it.
Repurchase (buyback)
The manufacturer refunds your money (price + incidentals, minus the mileage offset) and takes the vehicle back. Best when you’ve lost confidence in the car.
Replacement vehicle
The manufacturer provides a comparable new vehicle. The choice between a refund and a replacement is usually yours; a replacement still accounts for the mileage offset.
Cash-and-keep settlement
You keep the vehicle and accept a cash payment for its diminished value. This is common when the defect is annoying but livable and you want to avoid switching cars.
The branded-title footnote
Bought-back lemons are resold with branded titles in most states. Irrelevant to your remedy, but a good reminder: the disclosure regime exists because buybacks are routine, not exotic. Asking for one is not audacious.
A lemon law attorney can tell you which remedy nets the most given your mileage, remaining loan, and the strength of your repair record.
The Lemon Law Claim Process
1
Document every repair
Keep every repair order showing the date in, date out, the complaint, and the work performed. This paper trail is the single most important part of a lemon law claim.
2
Give the manufacturer a final chance
Many states require written notice to the manufacturer (not just the dealer) and one last opportunity to repair before you can demand a buyback.
3
Manufacturer arbitration
Some manufacturers run (or require) an arbitration program. Decisions are often non-binding on you, so an unfavorable result doesn’t end your case.
4
Demand a buyback or replacement
With your repair record assembled, your attorney demands repurchase or replacement plus incidental damages and fees.
5
Litigation, if needed
If the manufacturer refuses, you can sue. Because most lemon laws shift attorney fees to a losing manufacturer, these cases are typically handled on contingency.
Used Vehicles and the Magnuson-Moss Fallback
Most state lemon laws are written for new vehicles sold with a manufacturer’s warranty. Only a minority of states extend their lemon law to used vehicles, and coverage for RVs and boats varies widely. That does not always leave used-car buyers without options.
The federal Magnuson-Moss Warranty Act applies nationwide to any consumer product sold with a written warranty — including many used vehicles still under a manufacturer’s or dealer’s warranty — and, like state lemon laws, it shifts attorney fees to the manufacturer when you win. Check your state’s lemon law page for whether used vehicles are covered where you live.
Information on this page reflects current state laws as of 2026-08-24. This tool provides estimates for informational purposes only and does not constitute legal advice. Verify current rules with a licensed attorney before making decisions about your case. Learn about our methodology.
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