Lemon Law Remedies

Lemon laws provide consumers with two remedies that are written into state law, known as statutory remedies. Sometimes, these are not great solutions for an owner of a lemon vehicle. At Timothy Abeel and Associates, we also negotiate with auto manufacturers for alternative solutions that provide a better outcome for our clients.

If you have a lemon vehicle, you can choose one of these options:


1. Statutory Remedies

A refund of the purchase price you paid for the defective vehicle

Which includes:

  • Down Payment

  • Loan or Lease Payments

  • Sales Tax

  • Attorneys' Fees, Expert Fees, and Court Costs

  • Lease terminated or finance loan paid off at turn in

A replacement vehicle

Which means:

  • You get a brand-new vehicle that operates correctly (same make, model and trim level)

  • Your loan or lease continues at its current unpaid balance and will still run for the original term (the loan or lease is not extended).

  • Your prior payments are counted toward the loan or lease as if you still owned the defective vehicle.

  • The manufacturer pays your Attorneys' Fees, Expert Fees, and Court Costs.

2. Cash Settlement For Loss In Value

The majority of lemon law claims end in a settlement that is negotiated and agreed between the vehicle owner and the auto manufacturer. Your lemon law attorney should handle all the negotiations for you. In a negotiated settlement, you can agree to one of the above statutory remedies, but you are not limited to them. Instead, you can reach a settlement that works for you and is usually finalized quicker than a claim that goes to court.

The most common settlement in lemon law claims is the cash and keep settlement. Any settlement agreement is individual to you and is agreed to by you, but the general terms of a cash and keep settlement are:

Cash and Keep Settlement

Which typically means:

  • Get cash compensation for vehicle defect (not taxable)

  • Keep your vehicle

  • Continue making finance or lease payments (or trade it in)

  • Title is not branded

  • Vehicle warranties and service contracts remain in place

  • Manufacturer pays all your legal fees

A cash and keep settlement is particularly helpful when vehicle inventory is low or prices have increased, and you cannot get the vehicle you want with a refund of your original purchase price. With cash and keep, you can choose to repair and keep your vehicle or to trade it in on your own terms. At Timothy Abeel & Associates, we have helped clients to keep their vehicles AND get cash compensation ranging from $2,000 to $20,000, depending on the original vehicle purchase price and their unreasonable repair history. And this money is not taxable because it is compensation for loss of property value not earned income.

Find out more about how a lemon law claim works on our how does lemon law work page, or contact one of our lemon law attorneys handling cases online or by calling 888-611-5481.

Timothy Abeel & Associates is a national law firm that handles lemon law claims across the country.

Recent Results

Lemon Law Remedies
Lemon laws provide consumers with two remedies that are written into state ...