Vehicle repurchase and consumers finances...

When a consumer considers pursuing a California lemon law claim, numerous questions typically arise, such as:

• If my car is repurchased (buyback), what will I buy next, and what about qualifying for a loan?
   

• What if I want to keep my vehicle, but I want the manufacturer to pay me money for my troubles?
   

• My vehicle is almost paid off, should I just keep it and avoid the hassle?

When a vehicle is repurchased (buyback) under the California lemon law, in most cases the consumer is then required to replace that vehicle. Today’s incredibly low interest rates, the large refund from the repurchased vehicle that the consumer uses towards a substantial down-payment, along with automobile manufacturers financing divisions making credit approval easier than ever makes replacing the “lemon” vehicle not only easy - but financially comfortable.

If a consumer, for their own reasons, does not want a repurchase of their vehicle under the lemon law, but does want financial compensation, the lemon law attorney can arrange for a settlement with the automobile manufacturer of a cash payment to the consumer without the vehicle being returned.

"Should I just keep it and avoid the hassle" is one of the most expensive statements a consumer can make. Most vehicles that are the subject of a lemon law case/claim are near, or already out of factory warranty, which makes them a direct target for breakdown repair bills. Even with the vehicle loan being paid off, the cost of repairs is staggering with today’s labor and parts rates/costs. If a consumer takes a buyback, they start fresh with a new warranty – much longer warranties than in the past. A lemon law claim/case is not in any way a "hassle". In fact, on most lemon law cases the consumer only speaks with their attorney a few times during the case. With a lemon law repurchase, the down-payment and all the monthly payments made are refunded to the consumer (less the statutory mileage offset). If any loan balance exists, the automobile manufacturer is required to pay it off.

If a consumer considers trading-in a vehicle vs. using the lemon law, the consumer must realize that most, or possibly all of their hard-earned equity is lost on the trade-in process. Under the California lemon law , the refund calculation is based on what the original purchase price of the vehicle was, not its current value.

We invite you to call us and discuss these and any potential concerns you have about your present vehicle, and your potential lemon law case/claim.