A process exists within California’s consumer protection statutes to determine the monetary value a manufacturer must reimburse a consumer when a vehicle qualifies as a “lemon” and is repurchased. This computation involves several factors, including the original purchase price, collateral charges such as sales tax and license fees, and reimbursement for incidental expenses like towing or rental car costs incurred due to the vehicle’s defects. However, the manufacturer is allowed an offset for the consumer’s use of the vehicle prior to the first report of the defect. This usage fee is calculated based on a statutory formula.
Accurate determination of the repurchase amount is critical for consumers to receive fair compensation for the defective vehicle and the inconvenience it caused. Historically, this legal framework was established to protect consumers from bearing the financial burden of vehicles that consistently fail to meet quality and performance standards. The existence of a standardized calculation method ensures consistency and transparency in the buyback process, preventing manufacturers from undervaluing repurchase claims.
