Minnesota Lemon Law Refund Calculator

How the Minnesota buyback is calculated

Under the Minnesota Lemon Law.

• If the manufacturer cannot conform your vehicle to the warranty by repairing a defect that substantially impairs its use or market value to you after a reasonable number of attempts, it must replace the vehicle with a comparable one or accept its return and refund you (Minn. Stat. § 325F.665, subd. 3(a)).
• The refund starts with the full purchase price, including options or modifications arranged, installed, or made by the manufacturer, its agent, or its authorized dealer within 30 days after original delivery. It also includes sales or excise tax, license and registration fees, and towing and rental vehicle expenses caused by warranty repairs, plus the trade-in value the dealer stated if you traded a vehicle in. The manufacturer must give you an itemized statement, and the refund goes to you and the lienholder as your interests appear on the registrar of motor vehicles records.
• From that, the manufacturer may subtract a reasonable allowance for your use. The statute defines it as the amount directly attributable to use by you and any previous consumer during any period in which the vehicle's use and market value are not substantially impaired, and it caps it at ten cents per mile driven or ten percent of the purchase price, whichever is less. The statute names no odometer reading, so this estimate deducts the cap and uses the odometer at your first repair as the stand-in for those miles; a lower allowance would raise your refund. On a $30,000 vehicle with 20,000 miles counted, ten cents a mile would be $2,000, which is under the $3,000 cap, so the estimate deducts $2,000.
• The statute reduces the tax refund by the allowance's share: it is the tax you paid minus the tax multiplied by the allowance divided by the purchase price (subd. 3(h)). The calculator applies that reduction to the tax line, so the tax it adds is at most ten percent lower than the tax you paid. The statute does not address finance charges, so this estimate leaves them out.
• If the manufacturer offers a replacement vehicle you can reject it and require a refund. A lessee gets a refund only, and the lessor is refunded the original purchase price plus early termination costs of up to 15 percent of it, less what you paid on the lease.
• Minnesota has no general penalty multiplier. The one exception is treble damages, awarded by the court to the prevailing party, if it finds that a party removed a dispute-program decision to court in bad faith (subd. 8).

Minnesota lemon law: frequently asked questions

How much can I recover under the Minnesota lemon law?

The refund is the full purchase price (including options installed within 30 days of delivery), sales or excise tax, license and registration fees, and towing and rental costs from warranty repairs, plus the stated trade-in value, less an allowance for your use of no more than ten cents per mile or ten percent of the purchase price, whichever is less. The tax refund is reduced by the allowance's share of the price (subd. 3(h)), which the calculator applies. Run your numbers through the calculator for a personalized estimate.

How does Minnesota limit the deduction for my mileage?

The statute allows a reasonable allowance for your use of the vehicle, but not more than ten cents per mile driven or ten percent of the purchase price, whichever is less. It is the amount directly attributable to use by you and any previous consumer during any period in which the vehicle's use and market value are not substantially impaired.

Can I choose a replacement instead of a refund?

If the manufacturer offers a replacement vehicle, you can reject it and require a refund. A lessee is not entitled to a replacement vehicle, only to a refund. The statute does not say who chooses between the two at the outset.

Will the manufacturer pay my attorney fees?

A consumer injured by a violation of the lemon law may bring a civil action and recover costs and disbursements, including reasonable attorney's fees incurred in the civil action (subd. 9). The Attorney General's guide says attorney fees for representation in arbitration are not recoverable under the lemon law.

What if I lease my vehicle?

A lessee has the same rights as a purchaser except that the lessee gets a refund only. The consumer receives a full refund of the amount actually paid on the lease, including the additional charges in the refund formula if actually paid, less the use allowance. The lessor receives the vehicle's original purchase price plus early termination costs not exceeding 15 percent of that price, less the amount the consumer paid on the lease. The calculator takes the ten-percent ceiling on the amounts you paid; the statute's ceiling is ten percent of the purchase price, so the lease estimate deducts too little.