Indiana Lemon Law Buyback Calculator

In Indiana, a lemon law buyback (repurchase) refunds what you paid for the vehicle minus an allowance for the use you got from it. Indiana Code 24-5-13-11 sets that allowance as the total contract price multiplied by the miles the vehicle traveled before the manufacturer accepted its return, divided by 100,000 (section 24-5-13-11.5 applies the same fraction to the total lease obligation on a leased vehicle). Illustration only: 6,000 counted miles on a $35,000 price is an allowance of $2,100. Our calculator applies the 100,000-mile divisor to the mileage you enter for when the defect first appeared, so treat its figure as an estimate: the statute's own count of miles controls, and a licensed attorney can confirm how it applies to your purchase or lease.

Indiana recognizes a "lemon presumption" that shifts the burden to the manufacturer once your repair history crosses set thresholds. If the dealer cannot fix the same substantial, warranty-covered defect after 4 repair attempts, or if the vehicle is out of service for a cumulative 30 business days, the vehicle is presumed to be a lemon. Indiana Code 24-5-13-2 defines a business day as any day other than a Sunday or a legal holiday. This presumption generally applies within the first 18 months or 18,000 miles of ownership.

Indiana's state lemon law generally covers new vehicles purchased with a manufacturer's warranty. If your vehicle is used or falls outside the state statute, you may still have a claim under the federal Magnuson-Moss Warranty Act, which applies to written warranties nationwide.

Indiana Code 24-5-13-23(a) requires a lemon law action to be commenced within 2 years following the date you first report the defect to the manufacturer, its agent or an authorized dealer. If you start an informal dispute settlement procedure, section 24-5-13-23(b) tolls that period: the 2 years are paused while an informal dispute settlement procedure is being conducted. The deadline therefore depends on when the defect was first reported, not on the purchase date. A licensed attorney can confirm which deadline applies to your vehicle. When a vehicle qualifies, Indiana requires the manufacturer to repurchase or replace it rather than keep attempting repairs. Indiana's lemon law provides for an award of attorney fees to a consumer who wins (Indiana Code 24-5-13-22).