North Dakota Lemon Law Refund Calculator

How the North Dakota buyback is calculated

Under the North Dakota Lemon Law.

• The North Dakota lemon law (N.D.C.C. §§ 51-07-16 to 51-07-22) requires the manufacturer to replace the vehicle with a comparable one or accept its return and refund you, once it cannot make the vehicle conform to the express warranty after a reasonable number of attempts.
• The refund is the full purchase price, including all collateral charges, less a reasonable allowance for your use of the vehicle.
• The allowance may not exceed ten cents per mile driven or ten percent of the purchase price, whichever is less. It is the amount directly attributable to your use before you first reported the nonconformity, and during any later period when the vehicle was not out of service for repair.
• On a $35,000 vehicle driven 12,000 counted miles, ten cents a mile is $1,200 and ten percent of the price is $3,500, so the allowance can be at most $1,200. Our calculator counts the miles to the return (your current odometer) less the miles you enter for time the vehicle was out of service for repair, so use before your first report and later use outside the shop both count. This is an illustration of the statute's formula, not a prediction for your case.
• The statute does not define "collateral charges" or say that taxes, finance charges, or incidental damages are refunded as separate items. The calculator reads sales tax, registration and title fees, and dealer options as collateral charges, and leaves out finance charges, towing, rental, and out-of-pocket costs. The lemon law text has no multiplied damages or civil penalty. Refunds are made to the consumer, the lessor, and the lienholder, if any, as their interests may appear. For a leased vehicle, section 51-07-18.1 splits the refund between you and the lessor.

North Dakota lemon law: frequently asked questions

How much can I recover under the North Dakota lemon law?

The manufacturer must refund the full purchase price, including all collateral charges, less a reasonable allowance for your use that cannot exceed ten cents per mile or ten percent of the purchase price, whichever is less. The statute does not itemize taxes, finance charges, or incidental damages. Run your numbers through the calculator for an estimate.

How is the deduction for my use of the vehicle calculated?

It is a reasonable allowance not exceeding ten cents per mile driven or ten percent of the purchase price, whichever is less. It is the amount directly attributable to your use before your first report of the nonconformity, and during any later period when the vehicle is not out of service for repair.

Can I choose a replacement vehicle instead of a refund?

The statute says the manufacturer shall replace the vehicle with a comparable passenger motor vehicle or accept its return and refund you. It does not say who chooses between the two.

Does the lemon law add damages or attorney fees?

The North Dakota lemon law text provides no multiplied damages and does not address attorney fees. A consumer who elects to proceed under the act is foreclosed from any other remedy arising out of the same facts and circumstances (N.D.C.C. § 51-07-20).

What if my vehicle is leased?

Lessees are consumers. The manufacturer provides the lessee with all payments made to the lessor (cash payments, security deposits, and any trade-in allowance) less a reasonable allowance for use, and provides the lessor its actual purchase cost less the lessee's payments, plus freight and installed accessories, plus five percent of its purchase cost. On return the lease ends with no early termination penalty. The calculator shows the lessee's side only, and it takes the ten-percent ceiling on what the lessee paid; the lease section repeats no ceiling.