Lemon Law Mileage Offset Calculator
If your vehicle qualifies as a “lemon” under your state’s Lemon Law, the manufacturer might be required to repurchase it or offer a replacement. When they repurchase, they’re often entitled to deduct a “mileage offset” for the use you got out of the vehicle before the defect first arose. This calculator helps estimate that offset.
Disclaimer: Lemon Laws vary significantly by state. This calculator provides an estimate based on a common formula. Always consult with a qualified Lemon Law attorney in your state for specific advice and to understand your rights.
Understanding the Mileage Offset in Lemon Law
When a manufacturer repurchases a vehicle under Lemon Law, they’re essentially refunding your purchase price. However, they are typically allowed to deduct an amount for the “good use” you had from the vehicle before the significant defect was first reported for repair. This deduction is known as the mileage offset or usage fee.
The formula for calculating this offset can vary, but a common one (often specified in state statutes, like California’s) is:
Mileage Offset = (Purchase Price × Miles at First Repair) / Statutory Vehicle Life
- Purchase Price (P): The actual price you paid for the vehicle, including any charges for transportation and manufacturer-installed options, but usually excluding items like sales tax, registration fees, or non-manufacturer items. Check your state’s specifics.
- Miles at First Repair (M): The odometer reading when you first brought the vehicle in for repair of the defect(s) that ultimately led to it being declared a lemon.
- Statutory Vehicle Life (S): A figure set by law, often 120,000 miles, representing the presumed lifespan of a vehicle for offset calculation purposes.
This calculator uses this common formula. The resulting offset is subtracted from the purchase price (and potentially other refundable amounts) to determine the net refund you might receive.
How to Use This Calculator:
- Vehicle Purchase Price: Enter the amount you paid for the vehicle. Be precise, as this significantly impacts the calculation.
- Mileage at First Repair Attempt: Input the vehicle’s mileage when you first took it to an authorized dealer for the recurring problem. This is a critical figure.
- Statutory Vehicle Life: This is often 120,000 miles, but can differ. If you know your state’s specific figure, enter it. Otherwise, 120,000 is a common default.
- Click “Calculate Offset” to see the estimated deduction and potential net repurchase amount.
- Click “Clear” to reset the fields.
Important Note: The “Net Repurchase Amount” shown is a basic estimate (Purchase Price – Mileage Offset). Actual Lemon Law buybacks can be more complex, potentially including refunds for items like sales tax, finance charges, and other fees, while also deducting the mileage offset. This calculator focuses solely on the mileage offset itself.