Texas Lemon Law Buyback Calculator

Written By: Jessica Anvar Stotz
Legally Reviewed By: Jessica Anvar Stotz

Under the Texas Lemon Law, a buyback occurs when am auto manufacturer repurchases a defective vehicle from a consumer.

This situation arises when a vehicle has persistent issues that impact its usability, value, or safety, and these problems remain unresolved despite a reasonable number of warranty repair attempts.

Our Texas Lemon Law Buyback Calculator can help you estimate the compensation you may receive if your vehicle qualifies for a buyback. This tool considers several factors to provide an approximate buyback amount, including:

• Purchase Price: The original purchase price of the vehicle is a key factor in the calculation.
• Mileage: Both the mileage at the time of the first reported defect and the mileage at the time of purchase are taken into account.
• Usage Deduction: A deduction is applied for the mileage before the first reported defect causing the vehicle to be a lemon.
• Incidental Costs: This includes any expenses related to repairs and other associated costs as a result of the vehicle being a lemon such as rental car or tow car costs.

***By assessing these factors, the calculator determines an approximate buyback amount for vehicles that may qualify under the Texas Lemon Law. The results generated by this calculator are for informational purposes only and should not be considered as legal advice or a guarantee of compensation. Actual buyback amounts may vary based on individual circumstances, including specific details of a case, applicable state laws, etc.

TX Lemon Law Buyback Overview

A buyback under the Texas Lemon Law is the process through which an auto manufacturer repurchases a vehicle from its owner due to persistent defects that impair the vehicle’s usability, value, or safety. A Texas Lemon Law buyback may be initiated when:

• The vehicle exhibits a substantial manufacturing defect covered by the warranty.
• The vehicle owner reports the defect to an authorized manufacturer dealer within the warranty term.
• The owner gives the authorized manufacturer dealership a reasonable number of repair attempts to repair the issue.
• The owner provides written notice and an opportunity to cure the defect to the manufacturer.
• The defect significantly impairs the vehicle’s usability, value, or safety.

With a Lemon Law buyback, the manufacturer is required to repurchase the following:

• The purchase price of the vehicle, including taxes, title and license fees minus an amount charged for the vehicle’s use when it was problem-free.
• Incidental costs incurred by the owner as a result of the vehicle being a lemon, such as towing and rental car expenses.
• Payment of the remaining loan balance or lease payments remaining on the vehicle.

Eligibility Criteria for a Lemon Law Buyback in Texas

To qualify for a buyback under the Texas Lemon Law, a vehicle must meet specific timeframe and mileage requirements.

The issues with the vehicle must generally arise within the first 24 months or 24,000 miles of ownership, whichever comes first.

A reasonable number of repair attempts must be made before a buyback can be considered. Generally, this means:

• At least two attempts to repair a serious safety defect that could result in death or serious injury.
• At least four attempts to repair the same non-safety-related defect.
• If the vehicle has been out of service for repairs for a cumulative total of 30 days or more within the first 24 months or 24,000 miles, it may qualify for a buyback. These days do not need to be consecutive but must be properly documented.

How to Obtain a Lemon Law Buyback in Texas

To initiate the process for obtaining a Lemon Law buyback in Texas, a consumer must mail written notice of the nonconformities or defect to the manufacturer; and the manufacturer must be given an opportunity to cure the issue.

A consumer may not file legal action seeking a refund or replacement unless they have first exhausted the administrative remedies through the Texas Department of Motor Vehicles (TxDMV).

This requires submitting a detailed report that outlines the vehicle’s issues, the repair attempts made, and any supporting documentation. You can find the complaint form on the TxDMV website.

After your complaint is filed, the TxDMV may offer mediation to facilitate a resolution between you and the manufacturer.

If mediation does not result in a satisfactory outcome, a formal hearing will be scheduled. During this hearing, both parties will present their evidence, and an administrative law judge will make a determination based on the facts presented.

The buyback value is calculated based on several factors, including:

• The original purchase price of the vehicle.
• Any finance charges and manufacturer-installed options.
• Taxes, registration fees, and other official fees.
• Incidental costs incurred, such as towing and rental car expenses.
• A deduction for the vehicle’s use prior to the first reported defect, commonly referred to as a “usage fee,” which is calculated based on the mileage at the time of the first defect.

What to Expect During a Lemon Law Buyback

The timeline for a Lemon Law buyback can vary significantly, but you can generally expect the process to take anywhere from several weeks to several months.

After filing your complaint with the Texas Department of Motor Vehicles (TxDMV), mediation and hearings will be scheduled, which can extend the overall duration.

Patience is essential, as each step is critical for achieving a fair resolution. To support your buyback claim, you will need to gather and submit various documents, including:

• The original purchase agreement and any financing documents.
• Repair orders and invoices detailing the issues and repair attempts.
• Correspondence with the manufacturer or dealership regarding the defects.
• Records of any incidental costs, such as towing or rental car expenses.
• Mileage records at the time of the first defect and the current mileage.

Having thorough and organized documentation will strengthen your case and help facilitate a smoother process.

Negotiations with the manufacturer typically take place during the mediation phase, with the goal of reaching a mutually agreeable solution without proceeding to a formal hearing.

Be prepared to discuss the defects, repair history, and any financial impacts. If mediation is unsuccessful, the case will advance to a hearing, where an administrative law judge will render a final decision.

Throughout the process, it’s vital to stay informed and proactive, ensuring that all necessary steps are completed promptly and accurately.

After the Buyback

Once a vehicle is repurchased under the Texas Lemon Law, its title will be branded as a “Lemon Law Buyback.”

This permanent mark on the vehicle’s title serves as a warning to future buyers that the vehicle was repurchased due to significant defects, promoting transparency regarding its history.

Alternatives to Buybacks in Texas

If a Lemon Law buyback isn’t the right choice for you, there are several alternatives available:

1. Replacement Vehicle: Instead of a buyback, you may opt for a replacement vehicle, where the manufacturer provides you with a new vehicle of the same make and model. To pursue this option, you’ll typically follow the same initial steps as for a buyback, including filing a complaint with the Texas Department of Motor Vehicles (TxDMV) and participating in mediation or hearings. Factors to consider include the availability of a suitable replacement vehicle and any additional costs or adjustments due to differences in vehicle value.
2. Cash Settlement: Another alternative is a cash settlement, where the manufacturer offers monetary compensation instead of repurchasing the vehicle. This settlement may cover repair costs, depreciation, and other related expenses. To negotiate a cash settlement, you should document all repair attempts and associated costs and engage in discussions with the manufacturer, often facilitated by mediation. The settlement amount will depend on the severity of the defects and the vehicle’s current value.
3. Extended Warranty: In some cases, manufacturers may offer an extended warranty as a resolution. This warranty would cover future repairs for a specified period or mileage, providing peace of mind that any recurring issues will be addressed at no additional cost. To obtain an extended warranty, you need to negotiate with the manufacturer, presenting detailed repair records and evidence of the vehicle’s defects. Be sure to consider the warranty’s terms and whether it sufficiently addresses your concerns.
4. Repair Compensation: If the defects are not severe enough to warrant a buyback or replacement, you might receive repair compensation. This could include reimbursement for past repairs and coverage for future repairs related to the defect. To pursue this option, maintain detailed records of all repair attempts and costs and negotiate with the manufacturer for fair compensation. Consider the total cost of repairs and the likelihood of recurring issues when evaluating this option.
5. Trade-In Assistance: Some manufacturers offer trade-in assistance, allowing you to trade in your defective vehicle for a new one at a reduced cost. This option can be beneficial if you prefer to switch to a different model or make. To explore trade-in assistance, discuss this option with the manufacturer or dealership, providing documentation of the vehicle’s issues and repair history. The trade-in value and any additional costs will depend on the condition of your current vehicle and the value of the new one.

Contact Our Texas Lemon Law Attorneys

If you’re facing issues with a defective vehicle in Texas, don’t hesitate to reach out. The Lemon Law Experts are ready to help you secure the compensation you deserve.

Our dedicated team specializes in Lemon Law cases and will support you through every step of the process.

Why choose us? We have a proven track record of successfully resolving Lemon Law cases, ensuring you receive the best possible outcome.

We understand the frustration of dealing with a lemon and provide tailored solutions to meet your unique needs. Plus, you don’t pay anything unless we win your case, making our services risk-free.

Take action now! Contact the Lemon Law Experts today for a free consultation. Let us help you turn your lemon into lemonade! Call us at 877.921.3941 or fill out a consultation form on our website to get started.