Maryland Lemon Law Buyback 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 (buyback) or a comparable replacement when the manufacturer can't fix a covered defect after a reasonable number of attempts.
• The deduction for your use of the vehicle is hard-capped at 15% of the purchase price. Maryland fixes no mileage formula, so this ceiling is the only number the statute pins down, and the use allowance can never exceed it no matter how many miles are on the car.
• Your sales (excise) tax is refunded separately by the Maryland Motor Vehicle Administration, not by the manufacturer. The MVA pays it back in proportion to the purchase-price portion the manufacturer refunds, so it is a second recovery line rather than part of the manufacturer's check.
• The manufacturer's refund covers the full purchase price plus license, registration, title, and similar government fees, and it includes manufacturer-installed options. Finance and interest charges are not part of this refund clause; they are typically pursued separately rather than through the Maryland refund.
• If a court finds the manufacturer acted in bad faith, it may award up to $10,000 on top of your refund. This is a flat penalty ceiling, not a multiplier on your recovery, and it is conditional rather than automatic.

Maryland lemon law: frequently asked questions

How much can I recover under the Maryland lemon law?

A buyback refunds your full purchase price plus license, registration, title, and similar government fees, including manufacturer-installed options, minus a use allowance that is capped at 15% of the price. Your excise (sales) tax comes back separately from the Maryland MVA. If a court finds bad faith, it may add up to $10,000. These are estimates, not guarantees: run your numbers through our calculator to see a personalized figure.

How does the 15% use-allowance cap work?

Maryland lets the manufacturer subtract a "reasonable allowance" for the miles you drove, but that deduction can never exceed 15% of the purchase price. The statute sets no mileage formula, so 15% is the only hard ceiling, and on a $35,000 car the most that can come off for use is $5,250. In practice the reasonable estimate is often lower and is negotiated, which is favorable to consumers who have put real miles on the vehicle.

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

In Maryland the excise (sales) tax is not part of the manufacturer's refund. Once a return is finalized by judgment, arbitration, or settlement, you recover the excise tax you originally paid directly from the Motor Vehicle Administration. The MVA calculates it in proportion to the purchase-price amount the manufacturer actually refunds, and on a replacement it can apply as a credit toward the new vehicle's tax. Treat it as a separate recovery line in your estimate.

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

Often no. Under the Maryland statute a court may award reasonable attorney fees to a prevailing consumer, and the manufacturer typically pays those separately rather than out of your refund. That fee-shifting is why many Maryland lemon law attorneys take cases on contingency. Your estimated recovery is therefore closer to what you keep, not a number the lawyer then splits.

How long does a Maryland lemon law claim take?

It depends on 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 run a year or more. A well-documented history, with multiple repair attempts or 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 begin.