Free Buyer GuidesCalifornia Lemon Law Manufacturers' Rights
Manufacturers' Rights To A Mileage Offset Pursuant To The California Lemon Law
In a lemon law case, manufacturers typically argue that the defect the consumer is complaining about is not substantial, that the motor vehicle has been repaired or that the defect(s) complained about by the consumer cannot be duplicated. However, when a manufacturer does replace a new motor vehicle or give a consumer his or her money back pursuant to the lemon law, the manufacturer is entitled to a credit for the prior "use" the consumer got from the vehicle as explained below.
When the manufacturer replaces the new motor vehicle, the buyer shall only be liable to pay to the manufacturer an amount directly attributable to use by the buyer of the replaced vehicle prior to the time the buyer first delivered to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity.
When restitution is made, the amount to be paid by the manufacturer to the buyer may be reduced by the manufacturer by that amount directly attributable to use by the buyer prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity.
The amount directly attributable to use by the buyer shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer, including any charges for transportation and manufacturer installed options, by a fraction having as its denominator 120,000 and having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility for correction of the problem that gave rise to the nonconformity.