Lemon Law Buyback Calculator Guide: Formula & Worked Example
Short answer
Refund estimate after the mileage-use offset. In the fixed example below, estimated refund is 36,750.00. Your answer depends on the inputs and assumptions you choose.
Formula
Offset = (miles before 1st repair / 120,000) × price
Use the relationship above with consistent units. The inputs are purchase price, taxes, title & fees, incidental costs (towing, rental), miles at first repair visit. Use the input scale shown beside each field and keep time periods and units consistent. Only round the final result for display.
Worked example
- Purchase price
- 35000
- Taxes, title & fees
- 3000
- Incidental costs (towing, rental)
- 500
- Miles at first repair visit
- 6000
- Estimated refund: 36,750.00
- Mileage offset: 1,750.00
- Note: Offset rules vary by state
Understanding the result
Refund estimate after the mileage-use offset. Start with the base example, then replace each value with the figure that matches your situation.
Purchase price
The example uses 35000 for purchase price. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Taxes, title & fees
The example uses 3000 for taxes, title & fees. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Incidental costs (towing, rental)
The example uses 500 for incidental costs (towing, rental). This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Miles at first repair visit
The example uses 6000 for miles at first repair visit. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
What the comparison means
The comparison changes only purchase price, keeping every other example input fixed. This isolates that input's effect on the primary result. It does not predict future outcomes.
This estimate is not a settlement offer. Evidence, jurisdiction, policy limits and legal advice determine the actual outcome.
Comparison
| Scenario | Input | Result |
|---|---|---|
| Lower input | Purchase price: 28000 | Estimated refund: 30,100.00 |
| Base example | Purchase price: 35000 | Estimated refund: 36,750.00 |
| Higher input | Purchase price: 42000 | Estimated refund: 43,400.00 |
Common mistakes
- Using the wrong units for purchase price.
- Comparing results while changing more than one input at a time.
- This estimate is not a settlement offer. Evidence, jurisdiction, policy limits and legal advice determine the actual outcome.
Checklist
- Confirm purchase price.
- Confirm taxes, title & fees.
- Confirm incidental costs (towing, rental).
- Confirm miles at first repair visit.
- Check the result against your source or provider.
Calculators Percentage Editorial Team
Calculator guides from the Calculators Percentage team. These introductory examples are educational, not professional advice.
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This estimate is not a settlement offer. Evidence, jurisdiction, policy limits and legal advice determine the actual outcome.