Outcomes
What compensation can you receive?
When a manufacturer can't fix a qualifying defect after a reasonable number of attempts, Section 2301.604(a) gives the examiner two main orders: replace the vehicle with a comparable one, or take it back and refund the full purchase price less a reasonable allowance for your use. Either way, the manufacturer also reimburses your reasonable incidental costs. TxDMV's rule says the examiner will accommodate your preference "to the extent possible" (43 TAC section 224.260(a)(2)).
The refund, and your lender
The refund is built on the total purchase price, without any interest, finance charges or insurance premiums. Taxes, title and license fees are part of the buyback, and your $35 filing fee is added back. If a bank or credit union holds a lien, the money is split between you and the lender under section 2301.604(b). For a young buyer with a long loan and little down, that split decides how much reaches your account, so get a payoff figure early.
The use deduction, with round numbers
TxDMV presumes a car lasts 120,000 miles, and either side may argue for a different figure. An invented example: a $31,500 sedan first written up for the defect at 6,000 miles, reaching a hearing at 18,000 miles.
- Miles to the first report cost the full rate: 6,000 ÷ 120,000 × $31,500 = $1,575.
- The next 12,000 miles would be $3,150 at full rate, so at half rate they cost $1,575.
- The deduction is $3,150, leaving $28,350, and the $35 fee comes back on top, before the lender's share and incidental costs.
That's a sketch of the formula, not a prediction. Because the split point comes from a repair order, a first visit written up in vague words can move thousands of dollars to the manufacturer's side of the line. Our Texas buyback calculator runs it on your real figures.
Rides, rentals and other incidental costs
43 TAC section 224.262 lists the costs a winning complainant recovers when a refund or replacement is ordered, provided they are reasonable and verifiable. The list is open-ended and names alternate transportation, towing, calls and mail to the manufacturer or dealer, meals and lodging when the car fails on an out-of-town trip, damaged personal property, accessories you added (less a use allowance), and attorney fees only where you hire counsel after learning the manufacturer has one.
If you ask for a replacement
A comparable vehicle, under 43 TAC section 224.230(b)(2), is a new one from the same product line, of the same model year or newer, with comparable mileage. It's exchanged MSRP for MSRP, less the same use allowance, which you pay along with any lien and the taxes and fees on the new sale. A lease follows its own split, and a refund order ends the lease without penalty to you. Subchapter M itself doesn't shift attorney fees, but a court may award them on a winning Magnuson-Moss claim.