A buyback involves returning the vehicle for a refund calculated under the law. We can help you understand an offer, including any deductions and which expenses may be covered.
A refund or a replacement
For a qualifying new-motor-vehicle claim under Civil Code § 1793.2(d)(2), the statute provides for replacement or restitution when its requirements are met. A buyer may elect restitution instead of replacement. The recoverable amounts and deductions depend on the facts.
The refund calculation can include the eligible vehicle price, certain official charges, and qualifying incidental expenses such as reasonable towing or rental costs. It can also involve a deduction for use before the first delivery for repair of the problem giving rise to the claim. Not every add-on or expense is included.
A simplified mileage example
The statutory use formula uses the relevant vehicle price multiplied by the miles before that first repair delivery, divided by 120,000. As a simplified illustration only, a $40,000 price and 6,000 relevant miles produce a $2,000 use amount: $40,000 × 6,000 ÷ 120,000.
This example is not a settlement estimate. There can be disagreement about which price and repair visit to use in the calculation. Taxes, finance arrangements, leases, incidental expenses, and other issues require a separate review.
What to bring with an offer
Keep a copy of every version of the offer and note when it was received. Highlight any response deadline. Do not assume the headline dollar amount is the amount that will be paid directly to you.
- The full offer and any release, including attachments.
- The purchase or lease contract and itemized charges.
- Repair orders showing mileage when the relevant concern was first presented.
- Current lender or lessor information and payoff statements if available.
- Receipts for towing, rentals, and related out-of-pocket costs.
Questions to resolve before signing
Ask how the lender or lessor will be paid, who handles the vehicle return, what happens to registration and title, and which claims the release covers. If the proposal lets you keep the vehicle, ask how that differs from restitution or replacement. Continue addressing loan, lease, insurance, and safety obligations with appropriate advice while a dispute is pending.