Delaware Lemon Law Refund Calculator

How the Delaware buyback is calculated

Under the Delaware Automobile Warranties Act.

• After a reasonable number of repair attempts, the Delaware Automobile Warranties Act has the manufacturer either replace the vehicle with a comparable new one that you accept, or repurchase it. You have the unqualified right to decline a replacement and demand the repurchase.
• On a refund, the manufacturer reimburses the full purchase, including credits and allowances for any trade-in, plus related purchase costs, including sales taxes, registration fees and dealer preparation fees. The act says "sales taxes"; Delaware charges a motor vehicle document fee on a sale (30 Del. C. § 3002), which the act does not name, so ask an attorney whether it counts. The refund is made to you and the lienholder, if any, as your interests may appear.
• The allowance for your use is "reasonable" but cannot exceed the full purchase price multiplied by a fraction: the miles you drove before first reporting the defect to the manufacturer, its agent or dealer, divided by 100,000. The statute names no other figure, so the calculator deducts that cap at the low and expected figures and none at the high figure; the actual allowance could be lower.
• On a $30,000 vehicle first reported at 10,000 miles, the cap is $30,000 x 10,000 / 100,000 = $3,000. The act also allows a reasonable deduction for damage not attributable to normal wear and tear, but not for damage resulting from the defect; you can enter that amount.
• The act does not name finance charges, towing, rental or out-of-pocket repair costs in the refund, so the calculator does not add them. It states no multiplied damages: a violation is an unlawful practice under the consumer fraud statute (6 Del. C. § 2513), for which the Attorney General may seek a civil penalty paid to the State (§ 2522(b)), and no consumer penalty is added. The act has no lease refund provision, so a lease estimate is approximate (and labelled as one). The calculator does not ask about prior accidents: the act’s defenses are abuse, neglect and unauthorized modification.

Delaware lemon law: frequently asked questions

How much can I recover under the Delaware lemon law?

On a refund, you recover the full purchase, including trade-in credits and allowances, plus related purchase costs, including sales taxes, registration fees and dealer preparation fees, less a reasonable allowance for use and any reasonable allowance for damage beyond normal wear and tear. The use allowance cannot exceed the purchase price times your miles before first report divided by 100,000. Run your numbers through the calculator for an estimate.

How is the use allowance calculated in Delaware?

It is a "reasonable allowance" that may not exceed the full purchase price multiplied by the number of miles driven before you first reported the defect to the manufacturer, its agent or dealer, divided by 100,000 miles. The fewer miles on the vehicle when you first reported the defect, the smaller the cap.

Can I choose a replacement instead of a refund?

The manufacturer may offer a comparable new automobile that you accept, but you have the unqualified right to decline a replacement and demand a repurchase instead. If a replacement is made, the manufacturer reimburses incidental costs, including dealer preparation fees, fees for transfer of registration and sales taxes or other charges or fees you incurred as a result of the replacement.

Who pays the lawyer in a Delaware lemon law case?

In a court action by a consumer against the manufacturer, its agent or authorized dealer for breach of an express warranty, the court may in its discretion award the plaintiff costs and reasonable attorney's fees. If the court determines the action is brought in bad faith or is frivolous, it may instead award the defendant reasonable attorney's fees. It is not automatic.

Does the Delaware lemon law add penalties or double damages?

Chapter 50 states no penalty or multiplied damages. A violation of the chapter is an unlawful practice under the consumer fraud statute (6 Del. C. § 2513). The Attorney General may seek a civil penalty of not more than $10,000 for each wilful violation, paid to the State, and a private cause of action is available to a victim of a violation of that subchapter; no consumer amount is stated, so the calculator adds none.