California Lemon Law Buyback Calculator

A California lemon law buyback is not a negotiation over what the car is worth today. It is a formula. The manufacturer refunds what you actually paid and subtracts a single, statutory deduction for the miles you drove before the problem started. Depreciation, current market value, and how much you still owe do not change the math.

The Buyback Formula

Under Civil Code section 1793.2(d)(2), your refund is:

Everything you paid − the mileage offset = your buyback

"Everything you paid" is broader than most people expect. It includes your down payment, every monthly payment you have made, sales tax, license and registration fees, finance charges, and dealer-installed options. The manufacturer also pays off the remaining loan or lease balance directly to the lender.

How the Mileage Offset Works

This is the only deduction, and it is capped by statute:

Offset = Purchase price × (miles before first repair attempt ÷ 120,000)

The critical detail is miles before the first repair attempt — not your mileage today. If you bought the car and the transmission started slipping at 4,000 miles, your offset is calculated on 4,000 miles even if you have since driven it to 40,000 while the dealer kept failing to fix it. On a $45,000 vehicle, that is a $1,500 deduction instead of $15,000.

A Worked Example

Say you bought a $45,000 SUV with $5,000 down, financed the rest at $750 a month, and paid $4,000 in tax and fees. The transmission first went in for repair at 4,000 miles. Eighteen months later, after five failed repair attempts, you file.

• Down payment: $5,000
• 18 monthly payments × $750: $13,500
• Tax, license, and registration: $4,000
• Subtotal paid: $22,500
• Mileage offset: $45,000 × (4,000 ÷ 120,000) = −$1,500
• Estimated buyback: $21,000

On top of that, the manufacturer pays off whatever is left on the loan and pays your attorney's fees.

The Civil Penalty

If the manufacturer's failure to buy the vehicle back was willful — for example, you sent a clear demand with documented repair history and they ignored it or lowballed you — California allows a civil penalty of up to two times your actual damages. In the example above, that could turn a $21,000 recovery into as much as $63,000. Manufacturers know this, which is why well-documented claims tend to settle.

What Does Not Reduce Your Buyback

• Depreciation. Irrelevant. The formula uses purchase price, not today's value.
• Miles driven after the first repair attempt. Not counted in the offset.
• Negative equity you rolled in. Generally part of the amount paid.
• Cosmetic wear and tear. Not deducted.

Manufacturers sometimes open negotiations by proposing deductions for these. They are not part of the statutory formula.

Buyback or Cash-and-Keep?

Some clients would rather keep the vehicle, especially if the defect is annoying but livable and the vehicle is otherwise hard to replace at the same payment. In that case the manufacturer pays a negotiated cash-and-keep settlement instead, and you keep the car. It is almost always less than a full buyback, but it avoids re-entering the car market. We walk through both options before deciding.

Related: Do I qualify? · Full lemon law guide · 2025–2026 law changes

Disclaimer: The calculator above is an educational estimate, not a settlement offer or legal advice. Actual buyback amounts depend on your purchase documents, warranty, repair history, and the manufacturer's position.

For representation, visit our California Lemon Law practice area.