When Does a Dealer Have to Buy Back a Lemon?

Lemon laws are in place to protect consumers from defective products, such as vehicles. If you have purchased a car that is a lemon, you are entitled under the law to a replacement or a reimbursement. It’s important to realize that filing a lemon law claim is not an easy process. The end goal is that the dealer who sold you the vehicle will fulfill your buyer rights under the law. It’s the car that you purchased has a substantial defect that adversely affects the function of your car or puts safety at risk while still under the dealer warranty, you are entitled to a replacement of the vehicle or a buyback of the vehicle. If you are considering a buyback, there are a couple of things you should know about regarding both processes and how they work under the lemon law in your state.

The lemon replacement law is a remedy that is available to the consumer, the manufacturer, and the dealer. It’s important to note that replacement takes place only when all of the parties are agreeable about the terms. You cannot force a manufacturer or a dealer to replace your car. Once the dealer agrees to the terms, he must replace the lemon vehicle with a non-defective one under the same warranty. In addition, the dealer must pay for all fees associated with this agreement. Fees may include things like registration fees, sales tax, driver license fees and any legal costs associated with filing the lemon law claim. Many people are leery about having the dealer who sold them a lemon car replace their vehicles. When this happens, most consumers will opt for a buyback option from the dealer.

Buyback Laws

Buyback laws vary from state to state and have a different procedure from replacement lemon laws. In general, the dealer is responsible for paying you a buyback amount. A buyback is where the dealer actually buys the vehicle back from you. The amount of the buyback can vary depending on the factors involved. The amount of the buyback from the dealer must include the down payment for the car, paid monthly payments and anything that is left on the car loan. It is up to you to ensure that the lender gets paid back the balance of the remaining loan. Keep in mind that the dealer is not responsible for any late payments or penalties that the consumer might have incurred during the loan period.

There are also other costs that the dealer is responsible for under the lemon law. The dealer  is responsible for any transportation costs that you may have incurred due to the defective car, such as towing expenses. Any dealer installed parts must also be paid by the dealer and any other official charges that you have been charged when purchasing the vehicle must be paid back by the dealer. Once the complete buyback amount has been decided, the dealer may be able to subtract a usage fee. The usage fee is determined by the amount of miles driven. Most dealers will plug in a simple formula given by the law in their state to determine the exact usage fee amount. Incidental damage fees typically include towing fees repair costs, prepayment penalties, rental car expenses, early termination charges, and earned finance charges.

In order for a consumer to get the best buyback amount a dealer, it is highly recommended to keep all of the invoices, repair costs and any other paperwork associated with the lemon law claim. Proper documentation is required in order to be successful with a buyback claim. It’s also important to track the number of days that your vehicle was in the repair shop.

The Buyback Process

Buyback in a state may turn into a long, uphill battle for a consumer. Dealers generally have a good legal defense team on their side. There may be some tactics used by the attorneys to delay the processing of a buyback. It’s not that uncommon to see this happen in lemon law claims. When your car is defective, it is critical to have the issue resolved as soon as possible because safety is at risk for everyone.

If you feel that the dealer is still delaying the process of your buyout, you may want to consider hiring an attorney to act on your behalf. Consumer attorneys value consumer justice. This type of attorney is a strong advocate for consumer rights and will fight to protect your buyer rights. They also believe that you should not have to pay for any incidental charges if you have purchased a defective vehicle.

A lemon buyback attorney can speed up the process of lemon law buyback. They will deal directly with the dealer’s law firm and take away the hassle for you. Consumer buyback attorneys are experienced legal professionals who know exactly how to get consumers the justice they deserve. Contact a lemon buyback attorney if you’re having trouble with your buyback claim.

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