If you pursue a lemon law claim, there are three possible outcomes:
1. you get cash compensation while keeping the vehicle,
2. the manufacturer takes back the vehicle and you get a replacement,
3. or the manufacturer takes back the vehicle and you get a full refund for your lemon.
The latter result is called a “Lemon Law Buyback.” Essentially, the auto manufacturer buys back your vehicle based on what you paid for the car and other expenses you incurred for it. That is minus an offset based on the mileage on your vehicle before the defect first appeared.
If you win and opt for a lemon law buyback, the auto manufacturer is required to take back the vehicle. They are also required to repair it to conform to warranty before it can resell it. The vehicle is permanently branded “lemon law buyback” according to the requirements of the California Lemon Law. The vehicle is resold with an additional one year, no-mileage-limit warranty. In addition, whoever purchases it will be notified of the vehicle’s lemon status.
If you pursue a lemon law claim and get a cash-and-keep settlement, you get some monetary compensation while keeping the vehicle. In this case, you might ask yourself “can I resell this vehicle, even though I pursued a lemon claim?”
The short answer is: we do not recommend it. If the vehicle was experiencing enough problems for you to pursue a lemon law claim, you do not want to saddle another owner with those same problems. You are better off scrapping the vehicle. That being said, if you insist on reselling the vehicle, be honest about its lemon status and history of recurring problems.
If you have more questions about what to do with a lemon vehicle, consult our lemon law attorneys at (877) 222-2222. All consultations are free.
Lemon Law Help by Knight Law Group is an automotive lemon law firm that exclusively practices in California. If you are a California resident who purchased or leased a defective vehicle from a licensed dealership in California, we may be able to help you get rid of your potential lemon and recover significant cash compensation. Model year restrictions apply: 2016–Present vehicle models only. However, we cannot help those who reside outside of California or purchased their vehicle outside of California unless they are active duty members of the Armed Forces, nor will we be able to refer those to a lemon law firm in their states. To learn more about the California Lemon Law and your legal rights, visit our guides on the California Lemon Law and Used Car Lemon Law for more information.