Texas Lemon Law Buyback Calculator

How the Texas buyback is calculated

Under the Texas Lemon Law.

• Your refund starts from the total purchase price and then subtracts a mileage-based "reasonable allowance for use." The TxDMV offset is two-tier: the full rate applies to the miles you drove up to the first time you reported the defect, and only half that rate applies to the miles after the report through your hearing, with both divided by a 120,000-mile useful-life figure.
• The refund base includes the vehicle price, sales tax, title, license and registration fees, and factory options that came with the car.
• Interest, finance charges, and insurance premiums (including GAP and credit life) are excluded from the refund. The calculator leaves them out so your estimate matches the TxDMV rule.
• There is no consumer civil penalty in the Texas buyback remedy. The TxDMV remedy is make-whole, not multiplied damages: price minus the use offset, plus reimbursement of the $35 complaint filing fee (and eligible incidental costs like towing or a rental).
• Condition deductions for ordinary wear, tires, tint, or depreciation are not authorized by the rule. The only narrow exception is substantial damage that happens between your hearing and the actual repurchase.

Texas lemon law: frequently asked questions

How much can I recover under the Texas Lemon Law?

Your estimated recovery is the total purchase price (including sales tax, title, license and registration fees, and factory options) minus a mileage-based use allowance, plus reimbursement of the $35 filing fee and eligible incidental costs. On a $35,000 vehicle with low miles, that can be most of the price back; the more miles before you first reported the defect, the larger the deduction. The calculator gives an estimate, not a guaranteed figure.

How does the mileage deduction work?

Texas uses a two-tier "reasonable allowance for use" based on a 120,000-mile useful life. The full rate applies to the miles you drove from delivery up to the first time you reported the defect, and only half that rate applies to the miles you drove after that report through the date of your hearing. Because the miles before your first report are charged at the full rate, reporting a defect early generally protects more of your refund.

Is the Texas Lemon Law handled through the TxDMV?

Yes. Texas runs its new-vehicle lemon law as an administrative process through the Texas Department of Motor Vehicles (TxDMV), where a hearings examiner can order the manufacturer to repurchase or replace the vehicle. You start by filing a complaint with a $35 filing fee, which is reimbursed to you if you win a repurchase. This is different from states that send you to court.

Do I have to pay the lawyer out of pocket?

Often no. Many Texas consumers are represented at no out-of-pocket cost because attorney fees are commonly recovered from the manufacturer, frequently through a parallel federal Magnuson-Moss or Texas DTPA posture and settlement. Fee recovery under the TxDMV track alone is narrow, so fee arrangements vary. Confirm the specifics with any attorney before you sign.

How long does a Texas lemon law case take?

It varies by case. Many matters settle before the final TxDMV hearing once the manufacturer reviews the repair history, while contested cases that go to a hearing and final order take longer. Your repair documentation and how clearly the defect substantially impairs the vehicle both affect the timeline. The calculator estimates the money, not the schedule.