California Lemon Law Buyback Calculator

How the California buyback is calculated

Under the Song-Beverly Consumer Warranty Act.

• California's Song-Beverly Consumer Warranty Act lets you recover a refund (or replacement) when the manufacturer can't fix a covered defect after a reasonable number of attempts.
• Your refund starts from the price you paid and adds back collateral charges: sales or use tax, license and registration fees, finance charges you paid, and manufacturer-installed options. Dealer-installed and aftermarket add-ons are not part of that base.
• The only deduction the statute allows is a mileage offset for your use of the car. It is calculated as (miles on the odometer at your first repair visit divided by 120,000) times the purchase price. Miles you drive after that first repair attempt do not increase the deduction.
• On a $35,000 car first brought in for the defect at 12,000 miles, the offset is (12,000 / 120,000) x $35,000 = $3,500, leaving roughly $31,500 before tax, fees, and other recoverable items are added back.
• If the manufacturer's refusal to buy back the car was willful, a court can add a civil penalty of up to two times your actual damages on top of the refund. Attorney fees and costs are paid by the manufacturer separately, not taken out of your recovery.

California lemon law: frequently asked questions

How much can I recover under the California lemon law?

A buyback generally refunds what you paid for the vehicle plus collateral charges like sales tax, registration, and finance charges, minus a mileage offset for your use of the car. If the manufacturer acted willfully, a court can add a civil penalty of up to two times your actual damages, and your attorney fees are paid separately by the manufacturer. Run your numbers through our calculator to see a personalized estimate.

How does the mileage deduction work?

California uses a single statutory formula: the miles on your odometer at the first repair visit for the defect, divided by 120,000, multiplied by the purchase price. So a car first brought in at 12,000 miles loses 10 percent of its price to the offset. Importantly, the clock freezes at that first repair attempt, so the miles you drive afterward while the manufacturer drags its feet do not increase the deduction. This mileage offset is the only deduction the statute allows.

Do I have to pay the attorney out of my recovery?

No. Under the Song-Beverly Act, a prevailing buyer recovers reasonable attorney fees and costs, and the manufacturer pays them separately, on top of your buyback. That is why most California lemon law attorneys work on contingency: their fees do not come out of your refund. Your estimated recovery is what you keep, not a number the lawyer then splits.

How long does a California lemon law claim take?

It varies with the strength of your repair records and how willing the manufacturer is to settle. Many claims resolve through negotiation in a few months, while contested cases that head toward litigation can take a year or more. A well-documented repair history, with multiple attempts and long out-of-service stretches, tends to move a manufacturer to settle faster. Our calculator can help you understand what is at stake before you start.

Can I keep my car instead of returning it (cash and keep)?

Often, yes. A "cash and keep" settlement pays you a lump sum while you hold onto the vehicle, instead of surrendering it for a full buyback. Because you keep the car, there is no surrender and the mileage offset does not apply, which can make it attractive on a higher-mileage vehicle. These settlements are negotiated rather than fixed by statute, so the amount varies. Use the calculator to compare a buyback estimate against your situation.