Massachusetts Lemon Law Refund Calculator

How the Massachusetts buyback is calculated

Under the Massachusetts Lemon Law.

• Under § 7N½(3), a manufacturer that does not conform the vehicle to its warranty after a reasonable number of attempts must accept its return and refund the full contract price, including credits and allowances for any trade-in, less any cash award you accepted and a reasonable allowance for use, or offer to replace the vehicle. You may reject a replacement offer and demand a refund.
• The allowance for use is set by formula: the contract price times the number of miles the vehicle traveled before the manufacturer accepts its return, divided by 100,000 (25,000 for a motorcycle). The formula has no free-mileage allowance, so every mile up to the return counts.
• On a $35,000 contract price returned at 7,000 miles, the allowance is (7,000 / 100,000) x $35,000 = $2,450, leaving $32,550 before the items below are added.
• The manufacturer also reimburses incidental costs: sales tax, registration fee, finance charges and the cost of options added by an authorized dealer, plus towing and reasonable rental costs that were a direct result of the nonconformity and were not provided at no cost to you. Refunds go to you and the lienholder, if any, as their interests may appear.
• In state-certified arbitration, damage to the vehicle beyond reasonable wear and tear, through no fault of the dealer or manufacturer and unrelated to the defect, is deducted from the award (201 CMR 11.14). The calculator has an optional line for it.
• A failure to comply with the law is a c. 93A violation (§ 7N½(7)). Chapter 93A allows two to three times actual damages for a willful or knowing violation, and a prevailing consumer is awarded attorney's fees and costs. Those amounts are not part of the estimate.

Massachusetts lemon law: frequently asked questions

How much can I recover under the Massachusetts lemon law?

For a new vehicle, § 7N½(3) gives the full contract price (with trade-in credits and allowances), less any cash award you accepted and the allowance for use, plus sales tax, registration fee, finance charges, dealer-added options, and towing and reasonable rental costs. The Mass.gov guide says the manufacturer does not reimburse personal expenses such as lost wages and childcare. Run your numbers through the calculator for a personalized estimate.

How does the mileage deduction work?

The statute sets a formula: the contract price times the miles the vehicle traveled before the manufacturer accepts its return, divided by 100,000 (25,000 for a motorcycle). A vehicle returned at 7,000 miles loses 7 percent of its price to the allowance. There is no free-mileage allowance. If you keep driving the vehicle after you return it to the manufacturer, § 7N½(3) says that use is reflected in the allowance.

Is there a state arbitration program I can use?

Yes. State-certified new car arbitration is available if you request it within eighteen months from the date of original delivery (§ 7N½(6)). The finding is due within forty-five days of receipt of the request. A manufacturer found to owe a refund or replacement must deliver it within twenty-one days or appeal to the superior court with a bond of the award plus $2,500 for attorneys' fees. A consumer dissatisfied with a finding has the right to file a claim under chapter 93A.

Who pays attorney's fees?

The statutes provide for fee awards in two places. Section 7N½(6) says "any prevailing consumer shall be awarded reasonable attorneys' fees and costs" where a court upholds a state-certified arbitration award, and c. 93A § 9(4) awards reasonable attorney's fees and costs on a finding of a violation, which a failure to comply with § 7N½ is (§ 7N½(7)). The statutes do not say how you and your own lawyer arrange that lawyer's fee, so ask the attorney.

Does the calculator work for a used vehicle?

Not for a used vehicle covered only by § 7N¼. That law refunds the "repurchase price" (the price paid including finance charges, registration fees, insurance and service contracts, and the trade-in value, plus incidental costs) less fifteen cents for each mile between the sale and the repurchase, and this calculator uses only the new-car formula. A later owner of a vehicle still inside its first year or 15,000 miles may have § 7N½ rights too.