Texas Lemon Law Buyback Calculator

A Texas lemon law buyback centers on the vehicle's purchase price, reduced only by a mileage offset for pre-defect use. That offset is generally figured as (miles at first repair attempt ÷ 120,000) × purchase price. For a $40,000 truck with 9,000 miles when the defect first appeared, the offset is about $3,000, leaving roughly $37,000 in refundable purchase price before incidental damages such as sales tax, license fees, and finance charges are added back.

Texas 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 days, the vehicle is presumed to be a lemon. This presumption generally applies within the first 24 months or 24,000 miles of ownership.

Texas'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. Texas's law also reaches recreational vehicles (RVs), which many states exclude.

The Texas Department of Motor Vehicles states that a Lemon Law complaint must be filed within 6 months following the earlier of the expiration of the express warranty term, 24 months after purchase, or 24,000 miles following the date of delivery, and that the filing period is set by whichever of those events comes first. At the latest that is 2 years, 6 months after delivery, and it comes sooner if the warranty term ends or the vehicle passes 24,000 miles first. A licensed attorney can confirm which deadline applies to your vehicle. When a vehicle qualifies, Texas requires the manufacturer to repurchase or replace it rather than keep attempting repairs. Texas's lemon law (Occupations Code chapter 2301, subchapter M) is a complaint process with the Texas Department of Motor Vehicles and has no attorney-fee provision. After that process, the refund or replacement remedy is available in a suit against the manufacturer under the Deceptive Trade Practices Act, Business and Commerce Code chapter 17 (Occupations Code 2301.607(b)).