Maryland Lemon Law Refund Calculator

How the Maryland buyback is calculated

Under the Maryland Automotive Warranty Enforcement Act.

• The Maryland Automotive Warranty Enforcement Act lets you choose a refund or a comparable replacement when, during the warranty period, the manufacturer is unable to repair or correct a defect or condition that substantially impairs the use and market value of the vehicle after a reasonable number of attempts.
• The deduction for your use of the vehicle is "a reasonable allowance ... not to exceed 15 percent of the purchase price". The statute sets no mileage formula, so 15% is the only number it pins down. Our low and estimated figures both deduct the full 15%, because that is what manufacturers in Maryland take in practice (a practice note, not statute); a smaller deduction is possible, and our high figure deducts none. You may also enter damage that is not normal wear and not caused by the defect, which the statute lets the manufacturer deduct.
• The excise (titling) tax is recovered from the Maryland Motor Vehicle Administration, not the manufacturer, and is calculated on the amount of the purchase price the manufacturer refunds (§ 14-1503(b)). Our calculator shows it as a separate line, prorated to the refunded price.
• The refund is the full purchase price including all license fees, registration fees, and any similar governmental charges, less the allowances above, and it includes options on the purchase contract. Refunds go to you and the lienholder as your interests appear on Motor Vehicle Administration records. The refund clause lists no finance charges and no towing, rental or out-of-pocket costs; other law may allow more (§ 14-1502(h)). For a lease, the lease section refunds all money paid under the lease, including excise tax and governmental charges, less a reasonable allowance for unimpaired use, with no early-termination fees (§ 14-2004(d)); it states no percentage cap on that allowance.
• If a court finds the manufacturer acted in bad faith, it may award damages of up to $10,000 in addition to your other remedies. This is a flat ceiling, not a multiplier on your recovery, and only a court can award it. A court may also award fees against a consumer whose action is brought in bad faith or is of a frivolous nature (§ 14-1502(l)(2)).

Maryland lemon law: frequently asked questions

How much can I recover under the Maryland lemon law?

A refund is the full purchase price including license fees, registration fees, and similar governmental charges, including options on the purchase contract, minus a reasonable allowance for your use that cannot exceed 15% of the purchase price and a reasonable allowance for damage not attributable to normal wear. The excise (titling) tax is recovered from the Maryland MVA, calculated on the portion of the price refunded. If a court finds bad faith, it may award up to $10,000. These are estimates, not guarantees: run your numbers through our calculator to see a personalized range.

How does the 15% use-allowance cap work?

Maryland lets the manufacturer subtract a "reasonable allowance" for your use, but that deduction cannot exceed 15% of the purchase price. The statute sets no mileage formula, so on a $35,000 car the most that can come off for use is $5,250. Our low and estimated figures deduct that full 15%, because that is what manufacturers take in practice (a practice note, not statute); a smaller deduction is possible, and the high figure deducts none.

How do I get my excise tax back from the MVA?

In Maryland the excise tax is not part of the manufacturer's refund. When a manufacturer accepts return of the vehicle under a judgment, decree, arbitration award, settlement agreement, or voluntary agreement, you are entitled to recover the excise taxes originally paid from the Motor Vehicle Administration, calculated on the amount of the purchase price that the manufacturer refunds. On a replacement, the MVA allows a credit against the excise tax on the replacement vehicle. Treat it as a separate recovery line in your estimate.

Who pays the attorney under the Maryland lemon law?

A court may award reasonable attorney's fees to a prevailing plaintiff (§ 14-1502(l)(1)). It may also award fees against a consumer whose action is brought in bad faith or is of a frivolous nature (§ 14-1502(l)(2)). Fees are not part of the calculator's figures.