Three possible outcomes
When a vehicle qualifies under California's Lemon Law, you generally get to choose between three outcomes:
Buyback
The manufacturer refunds what you've paid into the vehicle, minus a mileage offset.
Replacement
A new, comparable vehicle in place of your lemon.
Cash & keep
Keep the car and take a cash settlement for its diminished value.
How a buyback is calculated
A buyback refunds the money you've put into the car — then subtracts one deduction. The pieces:
- Plus your down payment, monthly payments made, and the remaining loan payoff.
- Plus collateral charges — sales tax, registration, and finance charges.
- Minus the mileage offset for miles driven before your first repair visit.
A worked example
You bought a $45,000 truck and first took it in for the transmission at 9,000 miles. Mileage offset = $45,000 × (9,000 ÷ 120,000) = $3,375. Your estimated buyback ≈ $41,625 — plus taxes and fees, before any civil penalty.
Notice how small the offset is when you report the problem early. Drivers who wait until 40,000+ miles to act give up far more.
Civil penalties — up to 2× your damages
When a manufacturer willfully fails to repair or buy back a lemon, California law allows a civil penalty of up to two times your actual damages. On a $40,000 buyback, that can push the total recovery dramatically higher. Whether a penalty applies depends on the manufacturer's conduct — an attorney can assess it.
Extra costs you can recover
- Towing and roadside costs
- Rental or replacement transportation
- Out-of-pocket repairs
- Your attorney's fees — paid by the manufacturer, not you
Estimate what yours is worth
Run your numbers
Our free calculator uses the official formula to show your estimated buyback range.
Figures are estimates for general information only and are not a guarantee of recovery. Actual amounts depend on your documents and the facts of your case. This is not legal advice.