2025 Tesla Model 3 Lemon Law Buyback in Oregon
Past results do not guarantee a similar outcome.
Our client leased a 2025 Tesla Model 3 new in Oregon in April 2025. A rubbing noise from the rear suspension kept returning, the right rear damper was replaced three times, and interior trim rattled as well. After five repair visits, Tesla repurchased the car for a total of $53,582.
The vehicle and its defects
The Model 3 was leased new on April 23, 2025, with 15 miles on it. Its first service visit came about two weeks later, in early May.
The main complaint was a rubbing, squeaking noise from the rear suspension, which technicians traced to the right rear damper. A smaller problem showed up in the cabin, where a clicking rattle near the rear passenger headliner and loose interior trim made noise.
| Vehicle | 2025 Tesla Model 3 |
|---|---|
| State | Oregon |
| Purchase | Leased new, April 2025 |
| Repair visits | 5 |
| Days out of service | 11 |
| Resolution | Buyback, settled February 2026 |
| Total | $53,582 |
The repair record
Five visits between May and July 2025 added up to 11 days out of service. Four of them were dealing with the same noise coming from the rear suspension.
- May 08–12, 2025
The owner reported a rubbing sound coming from the right rear suspension. Technicians found wear in the rear right damper, replaced it and confirmed on a road test that the noise was gone.
- June 02, 2025
The rubbing noise was back, this time from one side of the rear (passenger or driver). Tire pressure did not need adjusting, and the noise was left unaddressed at this visit.
- June 09, 2025
One week later the rear noise was still there. Technicians replaced the right rear damper a second time.
- June 25–26, 2025
On a test drive below 10 mph, a squeak from the suspension was traced again to the right rear damper, which was replaced for the third time. Technicians also verified a clicking rattle in the rear passenger headliner area.
- July 24–25, 2025
Interior trim was rattling heavily. A loose clip behind the trim was the cause, and it was corrected.
Oregon Lemon Law and federal warranty law
The Oregon Lemon Law (Or. Rev. Stat. §646A.400 to §646A.418) applies to new vehicles bought or leased in Oregon for personal, family or household use, so a leased Model 3 falls within it. The statute looks at three repair attempts on the same defect, or 30 calendar days out of service in total, inside the first two years or 24,000 miles from delivery. This car's record showed four visits for the same rear suspension noise, three of which ended with a new right rear damper, all within about nine weeks of delivery. That is the kind of record the three-attempt test looks at. Its 11 days out of service fell well short of the 30-day measure, so the claim did not depend on that test. Oregon expects written notice to the manufacturer. If the manufacturer runs a dispute program that follows FTC rules and has told the owner about it, the owner has to use it first, though its decision binds only the manufacturer. A claim must be filed within one year after the earlier of two years or 24,000 miles from delivery, and a court may award reasonable attorney fees to a consumer who prevails.
The federal Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) adds a federal warranty claim to the Oregon one. An owner who wins under the federal act may be able to recover attorney fees.
- Statute
- Oregon Lemon Law, Or. Rev. Stat. §646A.400 to §646A.418
- Repair test
- 3 repair attempts for the same defect, or 30 cumulative calendar days (60 days for motor homes) out of service
- Time limit
- Within 1 year after the earlier of 2 years or 24,000 miles from original delivery
- Federal law
- Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.
More on Oregon: how to file a lemon law claim in Oregon.
How RockPoint built the claim
Recurring failure of the same part was at the heart of this claim. The right rear damper was replaced in May, again in early June and a third time in late June, and the noise returned after the first two replacements. Each return was recorded in the service record.
Timing helped as well. All five visits happened within about three months of delivery, on a car showing 2,778 miles at last count. The trim rattles added to the picture of a new car that kept going back to the shop.
The outcome
Tesla repurchased the Model 3, and the settlement was reached in February 2026. The total value of the resolution came to $53,582 ($53,582.87 exactly), covering the lease payoff, the amount paid to the owner and attorney fees.
Questions about this case
Yes, it does. Oregon's statute covers new vehicles purchased or leased in the state for personal, family or household use. The Model 3 was leased brand new.
Three attempts to fix the same defect, or 30 calendar days out of service in total, within two years or 24,000 miles of delivery. Four visits were made because of the same issue with the rear suspension making noise.
One year after the earlier of two years or 24,000 miles from original delivery. Oregon also requires written notice to the manufacturer.
Only if the manufacturer has a dispute program that follows FTC rules and told the owner about it. In that case the owner must use it first. The decision binds the manufacturer but not the owner.
Tesla repurchased the car. The resolution had a total value of $53,582, which covered the lease payoff, the payment to the owner and attorney fees.
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