Michigan Lemon Law Buyback Calculator

How the Michigan buyback is calculated

Under the Michigan Lemon Law.

• Michigan's Lemon Law lets you demand a refund (or a comparable replacement) when the manufacturer can't fix a covered defect after a reasonable number of attempts.
• Your refund starts from the price you paid and includes the collateral charges that went with it: sales or use tax, license and registration fees, finance charges you paid, and manufacturer-installed options. Manufacturer rebates and incentives are excluded, since they reduced what you actually paid.
• The mileage offset only applies to a refund, not to a replacement vehicle. Michigan's formula is unusual: the numerator is the miles you drove before you first reported the defect, plus all miles over 25,000, divided by 100,000, times the price. On a $35,000 car first reported at 8,000 miles with 30,000 total miles, that is (8,000 + 5,000) / 100,000 x $35,000 = about $4,550.
• There is no civil-penalty multiplier in the Michigan lemon law. If you win, attorney fees and costs are paid by the manufacturer separately, on top of your refund, not taken out of it.
• Michigan also uniquely allows the manufacturer to deduct the appraised cost of damage that is not from normal use or the defect itself, mainly collision or accident damage. Ordinary wear, tires, and cosmetics from normal use are not deductible.

Michigan lemon law: frequently asked questions

How much can I recover under the Michigan lemon law?

A buyback generally refunds what you paid for the vehicle plus collateral charges like sales tax, license and registration fees, finance charges, and manufacturer-installed options, minus a mileage offset for your use of the car. Michigan has no civil-penalty multiplier, but if you prevail your attorney fees and costs are paid separately by the manufacturer, on top of your refund. Run your numbers through our calculator to see a personalized estimate.

How does the mileage deduction work?

Michigan uses an unusual two-part formula. The numerator is the miles you drove before you first reported the defect, plus all of your miles over 25,000, divided by 100,000, multiplied by the price. So the clock for the first part stops at your first defect report, while a separate tail counts every mile past 25,000. On a $35,000 car first reported at 8,000 miles with 30,000 total miles, the offset is about (8,000 + 5,000) / 100,000 x $35,000 = $4,550. This mileage offset only applies to a refund, not to a replacement vehicle.

Should I take a refund or a replacement vehicle?

Michigan lets you choose. A refund returns what you paid plus collateral charges, but it is reduced by the mileage offset for your use of the car. A comparable replacement vehicle carries no mileage offset at all, which can be worth more if you have put significant miles on the car. The right choice depends on your mileage and whether you want to stay in the same kind of vehicle, so use the calculator to compare.

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

No. Under the Michigan lemon law, a prevailing consumer can recover reasonable attorney fees and costs, and the manufacturer pays them separately, on top of your buyback. That is why most Michigan lemon law attorneys work on contingency: their fees do not come out of your refund. Your estimated recovery is what you keep, not a number the lawyer then splits.

How long does a Michigan lemon law claim take?

It varies with 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 take a year or more. A well-documented repair history, with multiple attempts on the same defect 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 start.