Texas Lemon Law Refund Calculator

How the Texas buyback is calculated

Under the Texas Lemon Law.

• The refund starts from the total purchase price (the rule excludes interest, finance charges and insurance premiums; TxDMV says the price includes taxes, title and license fee) and subtracts a "reasonable allowance for use". The rule presumes a 120,000-mile useful life: the miles you drove from delivery to the first report of the defect count at the full rate, and the miles after the first report through the hearing count at 50% (43 Tex. Admin. Code § 224.260(b)(2)). Evidence of a longer or shorter life can rebut the presumption.
• The refund also includes reimbursement of the complaint filing fee (TxDMV states $35) and reasonable, verifiable incidental costs: alternate transportation, towing, phone and mail charges, meals and lodging on out-of-town trips, loss or damage to personal property, and items you added less an allowance for use (§ 224.260(b)(1); § 224.262). The calculator has one box for them.
• Interest, finance charges and insurance premiums are excluded from the refund price (§ 224.260(b)(1)). The calculator leaves them out.
• The refund is paid to you and any lienholder in proportion to each interest in the vehicle (Tex. Occ. Code § 2301.604(b)).
• The Lemon Law refund has no multiplier. A separate Deceptive Trade Practices Act suit can award up to three times economic damages for knowing conduct (Bus. & Com. Code § 17.50(b)(1)); that is not in the estimate.
• The rule names one condition adjustment: substantial damage, or an adverse change in condition beyond ordinary wear and tear, between the hearing and the repurchase, if the parties cannot agree (§ 224.260(f)). The calculator has an optional box for it.
• Not modelled: a towable recreational vehicle's allowance is counted in days (§ 224.260(b)(3)); a lease is refunded under § 224.260(c) (lease payments and sums paid to enter the lease, less an allowance computed on the lessor's actual price). The calculator multiplies the vehicle price plus options, where the rule multiplies the "total purchase price".

Texas lemon law: frequently asked questions

How much can I recover under the Texas Lemon Law?

Your estimated recovery is the total purchase price less a reasonable allowance for use, plus reimbursement of the filing fee and reasonable, verifiable incidental costs (43 Tex. Admin. Code §§ 224.260(b), 224.262). The allowance grows with the miles you drove before you first reported the defect and, at half the rate, the miles after it through the hearing. The calculator gives an estimate, not a guaranteed figure.

How does the mileage deduction work?

The allowance is the total purchase price times the miles from delivery to the first report of the defect over 120,000, plus 50% of the total purchase price times the miles after the first report through the date of the hearing over 120,000 (§ 224.260(b)(2)). The 120,000-mile figure is a rebuttable presumption of the vehicle's expected useful life. The statute itself defines the allowance as "the amount directly attributable to use of a motor vehicle when the vehicle is not out of service for repair" (Tex. Occ. Code § 2301.601(3)).

Is the Texas Lemon Law handled through the TxDMV?

Yes. A refund or replacement under it is not available unless you have exhausted the administrative remedies (§ 2301.607(a)). You file a complaint with the Texas Department of Motor Vehicles; TxDMV states a $35 filing fee, which a complainant that prevails is entitled to have reimbursed by the nonprevailing party (§ 224.232(e)(1)). A case advisor tries to resolve the complaint through nonbinding mediation first, and a hearings examiner hears it if it is not resolved (§ 224.238).

Do I have to pay the lawyer out of pocket?

In the Lemon Law proceeding, attorney fees are reimbursed only as an incidental cost "if the complainant retains counsel after notification that the respondent is represented by counsel" (§ 224.262(a)(6)). In a Deceptive Trade Practices Act suit, "Each consumer who prevails shall be awarded court costs and reasonable and necessary attorneys' fees" (Bus. & Com. Code § 17.50(d)). Confirm the fee arrangement with any attorney before you sign.

How long does a Texas lemon law case take?

A case advisor first tries to resolve the complaint through nonbinding mediation (§ 224.238(a)); if it is not resolved, a hearings examiner hears it and issues a final order not later than 60 days after the hearing is closed (§ 224.264(a)). If no final order issues before the 151st day after you file, the department gives you written notice of your right to file a civil action (Tex. Occ. Code § 2301.607(c)). The calculator estimates the money, not the schedule.