Lemon Law compensation varies from case to case, depending on the circumstances of the claim. The ideal outcome is a Lemon Buyback, in which the manufacturer repurchases the vehicle from you. In a Lemon Buyback, you receive the following compensation:
- Your full down payment
- All monthly payments for the vehicle
- Taxes related to the purchase
- Finance charges
- A pro-rated portion of your Registration fee
In addition, you may receive compensation for the following:
- Towing fees
- Service costs, including parts
- Car rental fees
The manufacturer will also pay off the balance of your loan and discharge it. There is a standard depreciation deduction for your use of the vehicle. Depreciation is calculated based on mileage when you first brought the vehicle in to repair a defect.
You can also negotiate with the manufacturer to replace your lemon with another vehicle of equivalent or lesser value, essentially swapping your defective vehicle for one that works.