Alaska Lemon Law Refund Calculator

How the Alaska buyback is calculated

Under the Alaska Motor Vehicle Warranties Act.

• Under AS 45.45.305, the manufacturer or distributor accepts the vehicle back and, at your option, replaces it with a new, comparable vehicle or refunds the full purchase price less a reasonable allowance for your use.
• The full purchase price is the total price paid by the original owner, including costs added to the retail price such as original registration fees, transportation fees, dealer preparation, and dealer-installed options (AS 45.45.360(4)). The refund goes to your lienholder, if any, and you, as your interests appear.
• The allowance for use is capped by the statute, with no mileage formula: it may not exceed the vehicle's depreciation for the period it was available to you, calculated by a straight-line method over seven years, plus any depreciation caused by neglect or abuse by you or by body damage not caused by the defect (AS 45.45.360(9)). The calculator takes up to that straight-line figure off from your delivery and return dates (at the low and expected figures, none at the high), so treat it as an estimate.
• The manufacturer must also reimburse any reasonable cost of shipping the vehicle to and from the nearest authorized facility for service and repair of the defect (AS 45.45.350). The statute does not mention taxes, finance charges, or incidental damages; the Attorney General's guide says a refund will not include accrued finance charges, so the calculator does not add them.
• The Act has no multiplier of its own. Failure to refund or replace when required is presumed an unfair trade practice (AS 45.45.330), and a separate private action under AS 45.50.531 by a person who suffers an ascertainable loss of money or property allows three times actual damages or $500, whichever is greater.

Alaska lemon law: frequently asked questions

How much can I recover under the Alaska lemon law?

The full purchase price, including original registration fees, transportation fees, dealer preparation and dealer-installed options, less a reasonable allowance for your use, or a new comparable vehicle if you prefer. Reasonable shipping costs to and from the nearest authorized facility are reimbursed. The allowance may not exceed straight-line depreciation over seven years for the time the vehicle was available to you, plus depreciation from neglect, abuse or body damage not caused by the defect. The statute does not address taxes or finance charges; the Attorney General's guide says a refund will not include accrued finance charges.

Is the allowance for use based on miles?

No. Alaska ties the allowance to time: depreciation calculated by a straight-line method over seven years for the period the vehicle was available for your use. The statute gives no per-mile formula, which is why the calculator asks for your delivery and return dates instead of miles.

Do I choose between a refund and a replacement?

Yes. The statute says the manufacturer or distributor shall replace the vehicle with a new, comparable vehicle or refund the full purchase price "at the owner's option" (AS 45.45.305).

Does Alaska pay my attorney fees?

The Act itself has no attorney-fee provision. In an action brought by a private person under the unfair trade practices act, which the Act points to, a prevailing plaintiff shall be awarded costs as provided by court rule and full reasonable attorney fees (AS 45.50.537(a)). A prevailing defendant shall be awarded attorney fees and costs as provided by court rule, and full reasonable attorney fees if the action is found to be frivolous (AS 45.50.537(b)), so fees cut both ways.

Can I get more than the refund?

Possibly, through the unfair trade practices route. Failure to refund or replace when required is presumed an unfair trade practice (AS 45.45.330), and AS 45.50.531 allows a person who suffers an ascertainable loss of money or property to sue for three times actual damages or $500, whichever is greater, for each unlawful act or practice. The statute does not say how that applies to a single refusal, so ask a lawyer.