If You Bought a Defective Vehicle, a Car Buy Back May Be Your Best Option
Pursuing a car buy back is your right under your state’s Lemon Law, and it may be the best way to recoup your investment if you purchase a defective vehicle. Every state offers some form of car buy back under their Lemon Law. In some states, such as New York, Lemon Law lets you recover the full purchase price as long as the vehicle is below a mileage threshold. Other states, such as Florida and Georgia, use a depreciation formula based on miles driven.
If you are unhappy with a car or concerned about its resale value, you should consider a car buy back. This is a particularly attractive option for high-cost trucks and SUVs, as well as luxury vehicles that experience ongoing problems.
Who Is Eligible for a Car Buy Back?
Car buy back is an option under your state’s Lemon Law. This is a legal process that enforces the manufacturer’s warranty on new vehicles only. To qualify for Lemon Law protection, you must meet the following minimum requirements:
- You purchased the car new from a dealership. Only new vehicles are eligible, because only new vehicles are covered by the manufacturer’s warranty.
- The car has been in the shop for 30 or more days to repair defects. This does not need to be at one time; 6 5-day visits or 10 3-day visits add up to the 30 days needed to trigger Lemon Law protection. In nearly all states, the defect must affect the safe operation of the car. If a piece of trim keeps falling off, that will not qualify, but issues with brakes, engines, transmissions or safety equipment will qualify. Some states, including New York, provide a grace period for dealerships if parts are not available.
- You have made 3 or more attempts to fix the same significant defect. Again, this must be something that prevents safe operation of the vehicle. This includes unexpected loss of power, sudden shutdowns, electrical issues and the risk of battery fires in EVs.
If you meet these criteria, a car buy back is an option for you. But it may not be the only choice you have.
Is a Car Buy Back Better than a Manufacturer’s Program?
Most automakers want to avoid the added costs of Lemon Law claims for two reasons. The first is their legal costs to respond to the claim. The second is that any vehicle bought back after a Lemon Law claim must have the words, “Buyback: Lemon Law,” or similar language stamped on the vehicle’s title. This can make it very difficult to sell the vehicle in the future and significantly impacts resale value.
To keep customers from filing Lemon Law claims, you may be presented with a manufacturer car buy back offer. This will come directly from your dealership and may provide a reasonable resolution, depending on how you feel about the vehicle and the brand. Consider these scenarios:
The manufacturer offers to replace the vehicle. If you like the vehicle, this can be a good deal. The downside is that lemons tend to run in waves. If your first car was a lemon, the replacement could be a lemon as well. Certain makes and models have a bad reputation that significantly lowers their resale value.
The manufacturer offers a different vehicle of equal value. This may be the best possible outcome, if you like the brand. You get a different vehicle that may not develop the same difficult reputation as the one you bought.
The manufacturer offers a vehicle of lesser value, based on depreciation. In most states, a Lemon Law buy back will not get you 100% of what you paid for a new vehicle. New York is an exception; you get a 100% refund of the purchase price if the defect appears within the first 12,000 miles.
Manufacturers and dealers know their state Lemon Laws and depreciation formulas. They may take advantage of this to offer you a vehicle of lesser value, based on expected depreciation. The advantage here is that you avoid the time involved in the Lemon Law process and, hopefully, get a new car without issues. You may want to speak to a Lemon Law attorney in this scenario to weigh your options. Not all of these offers are poor, but you could be leaving money on the table if you take one. Remember that the resale value of that lower-cost vehicle will be less than the vehicle you initially bought, assuming that vehicle had not turned out to be a lemon.
The manufacturer offers a cash settlement. In this scenario, you hand over the keys and get a check. Your settlement will be based on depreciation in almost all cases, and you will lose the right to claim any additional costs, such as repairs or transportation, associated with the lemon car. You may get a better settlement if you pursue a Lemon Law claim, depending on whether the manufacturer includes depreciation and the added costs of any vehicle options. You will also lose your right to recover repair and transportation costs, if these are not part of the cash offer. The biggest benefit is time savings, as a cash settlement from a manufacturer can be in hand quickly.
A Lemon Law Attorney Can Help You Get a Car Buy Back
You can pursue a Lemon Law claim on your own, but you may get better results by working with a Lemon Law attorney. Your attorney will ensure that all paperwork is correctly filed, represent you against the vehicle manufacturer’s attorney and help you claim all of the money you are entitled to under your state’s laws. In some states, including New York, you can claim attorney fees as part of your car buy back settlement.
In all states, Lemon Law attorneys provide pro bono services. This means there are no fees for your claim unless you receive a settlement. Any fees are deducted from the settlement by your attorney. There are zero out-of-pocket costs to hire a Lemon Law attorney, and no fees if you lose your case.
Bad Vehicle provides free evaluations for car buy back claims. We will help you determine if you have a case and represent you with zero out-of-pocket costs. If you think a car buy back is the best option for a defective vehicle, please call us at 1-855-223-8344 or contact us online.