Hawaii Lemon Law Refund Calculator

How the Hawaii buyback is calculated

Under the Hawaii Lemon Law (HRS ch. 481I).

• When the manufacturer cannot fix a covered defect after a reasonable number of documented attempts, Hawaii law (HRS § 481I-3(b)) requires a replacement vehicle or acceptance of the vehicle back with a refund.
• The refund is the full purchase price, including charges for undercoating, dealer preparation, transportation, installed options and all collateral and incidental charges. Collateral charges include finance and interest charges, general excise tax, license and registration fees and title charges. Incidental charges are reasonable costs the defect directly caused, such as towing and alternative transportation, but not loss of use, loss of income or personal injury claims.
• From that, a reasonable offset for your use is subtracted: one percent of the purchase price for every thousand miles of use "attributable to a consumer". The miles counted stop at the earliest of the third repair attempt of the same defect, the first repair attempt of a defect likely to cause death or serious bodily injury, or the thirtieth cumulative business day out of service. Miles on the odometer when the vehicle was delivered to you are not yours; enter them and they are taken off.
• On a $35,000 vehicle with 8,000 counted miles, the offset is 8 x 1% x $35,000 = $2,800. Enter your odometer reading at the earliest of the three events above (the third repair of the same defect, the first repair of a safety defect, or the thirtieth business day out of service). If you leave it out, the estimate uses your odometer at the first repair, which understates the offset and overstates the refund.
• An offset may also be made for damage to the vehicle not attributable to normal wear and tear, if unrelated to the defect (the optional damage line). Refunds are made to you and the lienholder, if any, as their interests may appear. A later purchaser's purchase price may not exceed the purchase price paid by the original purchaser, so enter the lower figure. For a lease the refund follows HAR § 16-181-31: the down payment, deposit, cash charges at signing, lease payments and collateral and incidental charges, less one percent of the lease price (or the agreed-upon value in the lease) for every thousand miles. Hawaii’s lemon law itself adds no penalty or multiplier.

Hawaii lemon law: frequently asked questions

How much can I recover under the Hawaii lemon law?

A refund of the full purchase price plus collateral and incidental charges, less an offset of one percent of the purchase price for every thousand miles of use, or a replacement vehicle. Run your numbers through our calculator for a personalized estimate.

How is the mileage offset calculated in Hawaii?

The statute sets it at one percent of the purchase price for every thousand miles of use. Only the miles up to the earliest of the third repair attempt of the same defect, the first repair attempt of a defect likely to cause death or serious bodily injury, or the thirtieth cumulative business day out of service are counted.

Are taxes and fees refunded?

Yes. The statute lists general excise tax, license and registration fees, title charges and finance and interest charges among the collateral charges that are refunded. Refunds are treated as refunds of the sales price for purposes of HRS § 237-3.

Is there a penalty or multiplier on top of the refund?

Not in the lemon law itself. Chapter 481I states no penalty or multiplied damages. A violation of its resale rules, or untimely non-compliance with a binding arbitration decision (with stated exceptions), is prima facie evidence of an unfair or deceptive act under chapter 480, which allows the greater of $1,000 or threefold damages plus attorney’s fees and costs.

Can the state arbitration program give me the same refund?

Yes. A decision of the state certified arbitration program may provide a replacement vehicle, or acceptance of the vehicle with a refund of the full purchase price and all collateral and incidental charges. The prevailing party in arbitration may be allowed reasonable attorney’s fees.