Indiana Lemon Law Refund Calculator

How the Indiana buyback is calculated

Under the Indiana Motor Vehicle Protection Act.

• After a reasonable number of failed repair attempts, the manufacturer must accept the vehicle back and, at your option, either refund the amount you paid or provide a replacement vehicle of comparable value, within thirty days (IC 24-5-13-10).
• The refund is the full contract price of the vehicle, including credits and allowances for any trade-in, less a reasonable allowance for use (IC 24-5-13-11(a)).
• The allowance for use is a fixed formula: multiply the total contract price by a fraction with 100,000 as the denominator and, as the numerator, the miles the vehicle traveled before the manufacturer accepts its return (IC 24-5-13-11(b)). On a $30,000 contract price and 20,000 miles, that is $30,000 times 20,000 over 100,000, or $6,000.
• The refund also reimburses all sales tax, the unexpended portion of the registration fee and excise tax that was prepaid for any calendar year, all finance charges actually expended, and the cost of all options added by the authorized dealer (IC 24-5-13-11(c)).
• When a vehicle is replaced or refunded, the manufacturer also reimburses necessary towing and rental costs actually incurred as a direct result of the nonconformity (IC 24-5-13-13). If you take a replacement, it also reimburses the registration transfer fees and sales tax you incur because of it (IC 24-5-13-12). IC 24-5-13 names no multiplied damages.
• Refunds are made to you and any lienholder as your interests appear on the records of ownership (IC 24-5-13-11(d)).

Indiana lemon law: frequently asked questions

How much can I recover under the Indiana lemon law?

The refund is the full contract price including trade-in credits, less the allowance for use, plus sales tax, the unexpended prepaid registration fee and excise tax, finance charges actually expended and dealer-added options. Necessary towing and rental costs are reimbursed as well. Run your numbers through the calculator for a personalized estimate.

How is the mileage deduction calculated in Indiana?

Multiply the total contract price by the miles the vehicle traveled before the manufacturer’s acceptance of its return, then divide by 100,000 (IC 24-5-13-11(b)). You may keep using a vehicle you have returned until you are tendered a full refund or a replacement; that later use must be reflected in the allowance (IC 24-5-13-14).

Do I choose between a refund and a replacement?

Yes. The statute says that, at the buyer’s option, the manufacturer either refunds the amount paid or provides a replacement vehicle of comparable value, within thirty days (IC 24-5-13-10).

Who pays the attorney in an Indiana lemon law case?

A buyer who prevails in an action under the chapter is entitled to recover, as part of the judgment, the costs and expenses the court finds were reasonably incurred, including attorney’s fees based on actual time expended by the attorney (IC 24-5-13-22).

Does this calculator work for a leased vehicle?

Yes, for the lessee’s side. For a lease of more than four months the refund is split (IC 24-5-13-11.5). The lessee receives all deposit and lease payments, including trade-in credits, less a reasonable allowance for use: the total lease obligation at the inception of the lease times the miles traveled before the lessor accepts the return, divided by 100,000. The lessor receives its purchase cost, fees, insurance and other costs, sales tax and five percent of its purchase cost, less what the lessee paid. The calculator shows the lessee amounts you enter less the allowance on the total lease obligation at the inception of the lease that you enter (without it the allowance is taken on the amounts paid and is understated). The lessor’s share is not part of the estimate.