If you bought or leased a defective vehicle in California, you may qualify for a refund or replacement under the state’s Lemon Law. The Lemon Firm helps clients across California calculate and recover the full amount they’re owed when manufacturers fail to fix defective vehicles. Understanding how the buyback amount is determined, including the impact of mileage offsets and recent court rulings, can help you make informed decisions about your claim.

Why Choose The Lemon Firm

We provide the experience and focus needed to handle complex Lemon Law buyback cases:

  • Extensive Lemon Law experience with hundreds of successful buyback claims statewide
  • Careful review of mileage and warranty records to prevent manufacturers from undervaluing your claim
  • Full documentation support for purchase, payment, and repair records
  • No upfront fees—manufacturers pay your legal fees if your case succeeds
  • Proven results through negotiation or litigation when necessary

What a Lemon Law Buyback Includes

A buyback under California’s Song-Beverly Consumer Warranty Act requires the manufacturer to reimburse you for what you paid or still owe on the vehicle, including:

  • Down payment or trade-in equity
  • Monthly payments (principal and interest)
  • Unpaid loan or lease balance
  • Sales tax, license, registration, and other official fees

You may also recover incidental and consequential damages, such as:

  • Rental car or towing expenses
  • Public transportation costs while your car was unusable
  • Out-of-pocket repair costs not covered by warranty

From this total, certain items are deducted, like aftermarket accessories or third-party service contracts, and, in some cases, a mileage offset.

Express vs. Implied Warranty: How It Affects the Offset

Lemon Law claims can arise under either an express or implied warranty, and the type determines whether a mileage offset applies.

  • Express Warranty Claims: The manufacturer is allowed to deduct a mileage offset for your use of the vehicle before the defect first appeared.
  • Implied Warranty Claims: The offset generally does not apply, although civil penalties may be unavailable under these claims.

This distinction can make a significant difference in your final buyback amount, so it’s important to have your warranty documents reviewed by an attorney familiar with both types.

How the Mileage Offset Is Calculated

Under California law, the mileage offset accounts for the miles driven before the first repair attempt for the defect that qualifies the vehicle as a lemon. The standard formula is:

Mileage Offset = (Miles at first repair ÷ 120,000) × Vehicle Price

For example, if a $40,000 vehicle first went in for repairs at 10,000 miles, the offset would be roughly $3,333. This amount is subtracted from your total refund.

The earlier the problem occurs, the smaller the offset, and the larger your potential recovery.

Update from Niedermeier v. FCA US LLC 

A recent California Supreme Court decision, Niedermeier v. FCA US LLC (2024), clarified how restitution must be calculated under the state’s Lemon Law. The Court ruled that when a consumer sells or trades in a defective vehicle before the manufacturer completes a buyback, the trade-in value or sale proceeds cannot be subtracted from the refund owed under the Song-Beverly Act. In other words, the manufacturer must still repay the full “amount paid or payable” for the vehicle, plus incidental and consequential damages, before any mileage offset is applied.

This ruling ensures that consumers receive a complete and fair buyback, even if they no longer own the vehicle at the time of the claim. It also reinforces that while manufacturers may deduct a reasonable mileage offset for use before the first repair attempt (as confirmed in Williams v. FCA US LLC (2023)), they cannot use unrelated deductions to reduce restitution. Together, these cases strengthen California consumers’ rights to full compensation for defective vehicles.

Common Disputes Affecting Buyback Amounts

When evaluating a buyback claim, we often identify and challenge:

  • Incorrectly chosen “first repair” dates used to inflate the offset
  • Manufacturer attempts to exclude legitimate incidental damages
  • Inclusion of aftermarket items or third-party add-ons in the vehicle price
  • Misclassification of implied-warranty claims to justify an offset

These details can significantly change the final compensation, which is why careful review and documentation are essential.

Taking the Next Step

If you believe your vehicle qualifies under California’s Lemon Law, gather your purchase and repair records and contact The Lemon Firm. We’ll review your documents, calculate the buyback amount, and ensure that any mileage offset is applied fairly. Our goal is to maximize your recovery while holding the manufacturer accountable.

Frequently Asked Questions

Does the mileage offset always apply?

No. The offset typically applies only to express-warranty claims, not implied-warranty cases.

Will I have to pay attorney fees?

No. If your claim succeeds, the manufacturer pays your reasonable attorney fees and costs.

Can I file if my car was leased, not purchased?

Yes. California’s Lemon Law covers both purchases and leases made in the state.

What if my vehicle was used for business purposes?

It may still qualify if it was primarily for personal use or meets the small-business use criteria under state law.