Lemon Law Buyback: What Does The Manufacturer Pay For? | Nordgren Law: Automotive Litigation and Lemon Law

You researched, saved, shopped around, negotiated, and finally bought the new car or truck you’ve always wanted. It looks great on the outside but unfortunately, the same isn’t true for the inside. You’ve purchased a lemon.

Mechanical problems have led to multiple trips to the dealership, time off of work, and headaches. But finally, after negotiating with the manufacturer, they’ve agreed to a buyback.

What exactly does that entail? Essentially, the goal is to put the buyer in the same position they were in prior to purchasing the vehicle.


When an automaker agrees to buy back your vehicle, you will be reimbursed for your down payment and any monthly payments you’ve made for the car. The manufacturer will also pay off any amounts owed to the finance company so all liens on the vehicle are satisfied.

However, any amount the auto manufacturer owes is often offset by what is called a “credit for use.” How much credit is owed depends on how many miles the vehicle has been driven.

Other Damages and Expenses

There are other incidental expenses that need to be reimbursed in order to make the customer whole. Here are a few examples:

  • Finance fees and interest paid for your auto loan
  • Repair expenses and towing charges
  • Penalties related to the termination of the finance agreement
  • Car rental and alternative transportation charges
  • Registration fees and sales taxes
  • Funds expended to insure the vehicle

Attorney Fees

There are two different types of sellers under Louisiana Law: a good faith seller and a bad faith seller. A good faith seller is one who sells a defective product but is not aware of the problem while a bad faith seller is one who has knowledge of the problem but neglects to inform the buyer.

Bad faith sellers are liable for various damages that a good faith seller is able to avoid. One important example being attorney fees and court costs.

Fortunately, the automaker is deemed to have knowledge of all defects in the vehicles it produces and is therefore a bad faith seller. This means that having a Louisiana lemon law attorney does not cost the consumer a penny. In fact, our firm will even pay for your court costs and litigation expenses before a settlement or judgment is obtained.

So, if you’ve purchased a lemon, don’t go it alone. Contact us for a free consultation.