New Mexico Lemon Law Buyback Calculator

In New Mexico, a lemon law buyback (repurchase) refunds what you paid for the vehicle minus a "mileage offset" for the use you got before the defect appeared. Using the common statutory formula, the offset equals the miles driven before your first repair attempt divided by 120,000, multiplied by the purchase price. On a $35,000 vehicle with 6,000 miles at the first repair attempt, the offset is about $1,750 — so the buyback would be roughly $33,250, plus incidental costs like taxes, registration, and towing. Our calculator applies this same formula to your numbers.

New Mexico 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. This presumption generally applies within the first 12 months of ownership.

New Mexico is among the states whose lemon law extends to qualifying used vehicles sold with a manufacturer's warranty, not just new cars.

New Mexico Statutes 57-16A-8 requires an action under the Motor Vehicle Quality Assurance Act to be commenced within 18 months following the date of original delivery of the vehicle to a consumer, or, if the consumer resorts to an informal dispute settlement procedure under section 57-16A-6, within 90 days following the final action of the panel, whichever is later. A licensed attorney can confirm which deadline applies to your vehicle. When a vehicle qualifies, New Mexico requires the manufacturer to repurchase or replace it rather than keep attempting repairs. New Mexico's lemon law provides for an award of attorney fees to a consumer who wins (New Mexico Statutes 57-16A-9).