There was a time when getting a ‘lemon’ or a car that is repeatedly sent to the repair shops for repairs and tune ups was a total punishment with no hope. But not this time; thanks to the presence of lemon laws aimed at protecting the consumers against these dud. These laws are in place to ensure that the consumers get their due if the purchased car is repeatedly sent to the repair shop on almost the same issues and troubles. The law calls for two things that can be gained by the consumer. One, the consumer can get a replacement for the underperforming vehicle. And two, the consumer can count on the refund that can be offered by the manufacturer.

In the context of ‘lemon law’, the refund of an owned vehicle incorporates a number of costs:

1. The purchase price. This is the price paid by the consumer for the vehicle, and this includes all other charges for transportation and other installed options and accessories on the vehicle. But this will not include the charges for the components and accessories that have been installed by the dealer or the consumer.

2. The incidental damages. These damages include all costs related to repurchasing the vehicle. Some of these costs include the repair, the towing and the rental costs that have been incurred by the consumer. Also, these damages include the prepayment penalties, the early termination charges and other form of charges that have been incurred by the consumer.

3. And the total of all of these costs will be deducted by the reasonable offset for the physical damage that has been done on the vehicle.

Now the dispensation of payment happens both ways, to the lessor and the lessee. For the lessor, the law provides that he/she be paid with the payoff amount due as indicated in the lease agreement. The said amount will be deducted by the amount of the security deposit made by the lessor and the refund due to the lessor for the unexpired length of service of the contract and insurance as indicated in the agreement.

The lessee will also get its share of payments during the settlement of the issue, and the payment is composed of a number costs and charges. There are the collateral charges which refer to the official fees that are paid by the lessee and these include the license and registration fee and the sales tax. This also includes the incidental damages. Incidental damages shall include the reasonable repair, towing and the rental costs incurred by the buyer. This will also include the prepayment penalties and finance charges that are charged against the consumer. Other incidental charges that are covered under the law and which can be refunded to the consumer shall include the base monthly payments, the amount of trade-in and the security deposit held by the lessor. Sometimes, you as the lessee will get refund for the attorney fees.

Once you have learned that you can refund and the composition of it, then that’s the right time to file a complaint against the manufacturer. You may be asked to sit down in an arbitration procedure first before you can file your complaint. But if you need to file a case, make sure that you get the assistance of a lawyer who knows his way around.

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Category: Legal
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