If your car has been in the shop more than your driveway, you might be wondering whether lemon law lawsuits are actually worth it. But depending on your case, you could recover thousands in lemon law damages, penalties, or even a full buyback.
California’s Lemon Law is designed to protect consumers when a vehicle fails to perform as promised, whether you bought a new or used car, leased or financed. A successful claim can recover a wide range of costs, and in some cases, impose penalties on the manufacturer.
By working with an experienced lemon law attorney, you can hold automakers accountable and get real results. Here’s what is covered, how it works, and how calculations are used in determining damages.
Elements to consider
The calculation of lemon law damages depends on several factors, including the severity of the defect, the number of repair attempts, and the mileage on the vehicle. In California, the Lemon Law (Song-Beverly Act) calculates buyback or refund amounts using a formula based on your payments, incidental costs, and vehicle usage.
This includes:
- Down payment and monthly payments (or lease payments)
- Cash price, sales tax, license & registration fees
- Transportation or dealer-installed manufacturer options
- Any remaining loan balance on the vehicle (including finance charges)
California lemon law damages vary based on the details of your case, but you may be entitled to:
Buyback (Vehicle Repurchase)
If your claim is successful, the manufacturer is required to buy back your car and refund the full purchase price — including taxes, registration, and other fees. However, a one-time deduction, or “mileage offset,” is applied based on the mileage you drove before the defect was first reported.
For example, let’s say you paid:
- $50,000 total
- Plus $2,000 in rental and tow fees
- With a mileage deduction of $6,250
Your buyback amount would be: $50,000 + $2,000 – $6,250 = $45,750.
Replacement Vehicle
Instead of a refund, some consumers opt for a replacement. This means the manufacturer provides a comparable, defect-free vehicle, complete with a new warranty.
Cash Settlement
Known as “cash and keep,” this option allows you to hold onto the vehicle and receive a payment reflecting the reduced value caused by the defect. It’s commonly chosen when the defect doesn’t affect safety, or when a buyback isn’t practical.
Incidental Damages
Lemon Law also covers reasonable out-of-pocket expenses directly caused by the defective car. This might include car rental fees, towing, or repair costs that weren’t covered by warranty.
Consequential Damages
These cover losses that resulted indirectly from the defect. For example, if you missed work due to repair appointments or lost income because your business relied on the car.
Civil Penalties
When a manufacturer acts in bad faith — ignoring repair obligations, delaying service, or denying valid claims — the law allows courts to award civil penalties. In California, this can be up to two times the amount of actual damages. However, civil penalties are not awarded in every Lemon Law case.
Attorneys Fees
One of the most important protections under Lemon Law is the right to recover attorney’s fees. If you win your case, the manufacturer is required to pay your legal costs. That means you can pursue a claim without financial risk.
Getting the most for your hassle
Fighting back against a major auto manufacturer is challenging. Manufacturers often have teams of lawyers working to minimize payouts or deny claims altogether. That’s why to successfully recover your lemon law damages, you need to hire a lemon law attorney.
At Brennan Law, we’ve helped hundreds of Californians hold bad faith car makers accountable and pursue civil penalties and other costs. If you’re looking for the best lemon law attorney in Los Angeles, contact Brennan Law today for your free consultation.