South Dakota Lemon Law Refund Calculator

How the South Dakota buyback is calculated

Under the South Dakota Lemon Law.

• If after reasonable attempts the manufacturer or its authorized dealer cannot fix a condition that first occurred in the first year or 12,000 miles, the manufacturer must, at your option, replace the vehicle with a comparable new one or take it back and refund you.
• The refund includes the full contract price (with undercoating, dealer preparation, transportation charges and installed options, plus the nonrefundable portions of extended warranties and service contracts), all collateral charges including excise tax and license and registration fees, and finance charges you incurred after you first reported the problem. Enter only those later finance charges in the calculator; the extended-warranty or service-contract portion goes on the options line.
• It also includes incidental damages, which include the reasonable cost of alternative transportation while you were without the vehicle because of the problem. Refunds are made to you and any lien holders as their interests appear.
• A reasonable allowance for your use is subtracted. The statute sets it as the full purchase price multiplied by a fraction: 100,000 on the bottom and, on top, the miles the vehicle traveled before your first report of the problem. Only miles before that first report count, and the statute states no cap.
• On a $30,000 vehicle with 8,000 miles at the first report, the allowance is $30,000 x 8,000 / 100,000 = $2,400. The calculator uses the price and options you enter as the full purchase price, which is our reading (an extended-warranty amount entered on the options line is then counted in the allowance base too), so treat the result as an estimate.
• If the manufacturer has breached the act, you may also recover an additional award for reasonable attorney fees. The act provides no multiplied damages and names no deduction for the condition of the vehicle, so the calculator takes none.

South Dakota lemon law: frequently asked questions

How does South Dakota calculate the deduction for my use of the vehicle?

The statute multiplies the full purchase price of the vehicle by a fraction. The bottom of the fraction is 100,000 and the top is the number of miles the vehicle traveled before the first report of the problem to the manufacturer or an authorized dealer. Miles driven after that first report are not part of the allowance.

What does a South Dakota refund include besides the price?

The full contract price with undercoating, dealer preparation, transportation charges and installed options, plus the nonrefundable portions of extended warranties and service contracts. It also includes all collateral charges such as excise tax and license and registration fees, finance charges you incurred after you first reported the problem, and incidental damages including the reasonable cost of alternative transportation.

Can I get a replacement vehicle instead of a refund?

Yes. The choice is yours: after reasonable attempts the manufacturer must, at your option, replace the vehicle with a comparable new motor vehicle (and refund collateral charges such as excise tax, license and registration fees) or accept its return and refund the items above. The act lists "excise tax" among the collateral charges.

Do I pay my attorney out of the refund?

If the manufacturer has breached its obligations under the act, you may recover, in addition to the replacement or refund, an additional award for reasonable attorney fees. Whether you owe your own lawyer anything is a matter for your agreement with that lawyer.

Does South Dakota add penalties or multiplied damages?

No. Chapter 32-6D provides no penalty or multiplied damages. The extra award it mentions is for reasonable attorney fees.

Is South Dakota's use allowance capped?

The statute sets a formula, the full purchase price times the miles before your first report over 100,000, and states no percentage cap. The calculator never subtracts more than the price it is taken from.

What about the excise tax I paid when I bought the vehicle?

The refund includes "all collateral charges, including excise tax, license, and registration fees and similar government charges" (SDCL § 32-6D-3(2)). South Dakota's four percent motor vehicle excise tax is imposed "in lieu of" the sales taxes on such vehicles (SDCL § 32-5B-1). Enter it on the excise tax line.