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Is it worth it to bring a lemon law claim? What can I get?

May 6, 2022

Bringing a legal claim can seem like a huge step, hassle, and expense. But lemon law claims are intentionally designed to be straightforward, low-risk, and free for people who are stuck with a defective car, SUV, truck, or RV (in some states.) If you are wondering whether it is even worth it to bring a lemon law claim, this article will give you some more information about what it will cost you (typically nothing) and what you can get (a refund of your purchase price or a replacement vehicle.)

Bringing a legal claim can seem like a huge step, hassle, and expense. But lemon law suit claims are intentionally designed to be straightforward, low-risk, and free for people who are stuck with a defective car, SUV, truck, or RV (in some states.)
But how hard is it to win a lemon law case? How much does a lemon law attorney cost? And what happens when you win a lemon law case?
If you are wondering whether it is even worth it to file a lemon law claim, this article will give you some more information about what a lemon law suit will cost you (typically nothing) and what you can get (a refund of your purchase price or a replacement vehicle.)

What will a lemon law claim cost me?

Lemon laws specifically state that the auto manufacturer, not the consumer, must pay the consumer’s attorney fees if the vehicle is a lemon. Lawmakers included this requirement in lemon laws because they knew that the legal fees to fight a huge auto manufacturer could far outweigh the cost of fixing a vehicle, and would discourage consumers from bringing a lemon law suit claim. If this happened, consumers would be stuck with defective vehicles, and auto manufacturers might never have to face responsibility for the defects in their vehicles. But because consumers have protection from paying legal fees when filing a complaint for arbitration, the cases regarding motor vehicle problems provide an opportunity to get the manufacturer to pay the expenses related to repairs in full or force them to buy back the car.

When you win your lemon law claim, your attorney will usually send their bill directly to the auto manufacturer and you will not have to deal with fees at all. If you lose your lemon law claim, the auto manufacturer is not required to pay your legal fees, however, many lemon lawyers, including Timothy Abeel & Associates, will not take on your case if they do not think you will win. At Timothy Abeel & Associates, we guarantee that, win or lose, we will never send you a bill for our fees.

You can find out more about legal fees in lemon law claims here.

What can I get if I bring a lemon law claim?

State lemon laws set out exactly what you are entitled to if you are successful in your lemon law claim. The lemon laws in each state are slightly different, so you should ask your lawyer what you are entitled to in your state, but the two common remedies across states are a refund of your purchase price and a replacement vehicle. Most states will allow you to choose which remedy you want.

  1. Refund of Purchase Price

The automaker must refund you the purchase price of the vehicle. This is the price that you actually paid according to your original purchase invoice or lease contract, not the market value or the current value. Depending on the specific law in your state, it will include:

  • Down payment.
  • Allowance for a trade-in vehicle.
  • Any loan or lease payments.(Remember that you must continue making your loan or lease payments even when your vehicle is out of service and while you are bringing a lemon law claim.)
  • Sales tax.
  • License and registration fees.
  • Finance charges incurred after the manufacturer was notified of the defect (usually your first repair visit to the dealership.)
  • Cost of options or other modifications installed by the manufacturer or dealer as part of the purchase.
  • Non-refundable extended warranties or service contracts purchased with the vehicle.

The amount of the refund may be reduced by:

  • A reasonable amount for the use of the vehicle.
  • Damage beyond ordinary wear and tear.
  • Non-manufacturer installed options. (It is not advisable to add non-manufacturer installed options to a lemon as they may void your warranty and hurt your lemon law claim.)

The laws in your state will set out how the reasonable use allowance is calculated, and for what period it applies. For example, in Pennsylvania, the reasonable allowance for use is 10 cents per mile driven prior to the first report to the manufacturer or 10% of the vehicle’s purchase or lease price, whichever is lesser. In some states, if the problem exists on day 1, there may be no reasonable use deduction. In other states, the reasonable use offset can apply until the manufacturer is first notified of the defect (typically your first visit to the dealer for repair) or until the claim is concluded with a settlement or award.

Whether you are refunded the purchase price of your vehicle, or awarded a replacement vehicle, you will also be compensated for incidental costs related to the defect, including:

  • Attorneys’ fees, expert fees and court costs.
  • Rental vehicle cost while the lemon was out of service.
  • Towing charges.
  • Repair or diagnosis costs related to this problem.

2. Replacement Vehicle

Lemon laws also entitle you to a replacement vehicle rather than a refund of the purchase price. Some people prefer this option because they like the vehicle that they chose, and believe it was one defective unit, not a whole model-line problem. Sometimes this is the better option because it is difficult to get the vehicle you want (such as when there is a global semiconductor chip supply shortage) or the cost of vehicles have increased since you purchased your car, and you know your money won’t go as far.

If you get a replacement vehicle for your lemon, the auto manufacturer must give you a comparable vehicle. Each state has their own wording – “comparable,” “reasonably equivalent,” “substantially identical” – but the general requirement is that you should be given a replacement vehicle that is the same make, model, and trim as your original vehicle, including any manufactured-added options and service contracts.

In some but not all states, the consumer is still responsible for a reasonable use allowance when they choose the replacement vehicle option. This is calculated, as for the purchase price refund option, according to a formula in the state lemon laws and is different in each state.

If you receive a replacement vehicle for your lemon, you are still entitled to reimbursement of incidental costs as outlined above, which include:

  • Attorneys’ fees, expert fees and court costs.
  • Rental vehicle cost while the lemon was out of service.
  • Towing charges.
  • Repair or diagnosis costs related to this problem.

If you leased rather than purchased your vehicle, the terms and dates of your lease should not change. The replacement vehicle will be substituted for the original vehicle in your paperwork, and your lease will continue as before.

How risky is a lemon law claim?

A lemon law claim is a very low risk claim because state lemon laws tend to be clear cut and consumer friendly. Lemon laws set out specific prerequisites that must be met in order to call a vehicle a lemon, and once those are met, there is very little, or no, room for argument by the automaker. When an experienced lemon lawyer reviews your case (which most lemon lawyers, including Timothy Abeel & Associates, should do for free,) they should quickly be able to tell you whether or not you have a successful claim that is worth bringing.

Lemon law suit claims are also low risk because they should be free. In a successful lemon law claim, the automaker is required by law to pay all of your legal fees, and an experienced and reputable lemon lawyer will typically not take on your case if they do not think they can win. You should have an open discussion with your lemon law attorney about how much they will charge BEFORE you hire them. If you do not understand how much you will be charged, you should keep asking questions until you do, or find a lawyer who is open about their fees policy. Timothy Abeel & Associates will never send you a bill, and will not charge you any fees even if you lose.

If you think you may have a lemon vehicle, or contact one of our experienced lemon law team at Timothy Abeel & Associates for a free case review. We will discuss your individual case with you, and advise you whether or not you have a lemon law claim or have other options available to you.

Timothy J. Abeel & Associates, P.C. represent clients throughout California, Florida, New Jersey, Ohio, Pennsylvania, and West Virginia. Reviews can be seen on AVVO, Google, Glen Mills Yelp, Roseland Yelp, & Pittsburgh Yelp.

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