Outcomes
What Compensation Can You Receive?
When a car qualifies, section 681.104(2)(a) gives the manufacturer 40 days to either repurchase it and refund the full purchase price, or replace it with a vehicle you find acceptable. Whichever it turns out to be, the collateral and incidental charges you reasonably incurred come on top of it, and nobody can make you take a replacement, because the statute gives you an unconditional right to choose the refund instead.
On a financed car, the refund is split between you and the lender as your interests appear. In practice, the Attorney General's guideline says, that usually means the manufacturer pays off the loan and you get back your down payment and the payments you've made, less the offset, while leases follow a formula of their own that's set out on the lease card below.
How the offset for use is worked out
Under section 681.102(19), both remedies carry a charge for the miles you drove. The Attorney General's remedy calculation guideline breaks the math down into three steps, which go like this:
- Start with the base selling price on the invoice, leaving out taxes, government fees and dealer fees.
- Multiply that by your miles up to a settlement or the hearing, whichever comes first, once you've taken out the delivery miles and any test drives by the dealer, the manufacturer or the Board.
- Then divide whatever you get by 120,000 (or by 60,000 if it's an RV).
To put numbers on it, a $48,000 base price with 15,000 of your own miles gives you a $6,000 offset. Rebates are where you want to slow down and take a second look, because when part of a down payment was a manufacturer rebate, the guideline says that part usually is not refunded to you, though it may be used to reduce the offset. On the other side of the ledger, extras you bought with the car, things like window tinting, an extended warranty or dealer-installed equipment, can be claimed back as collateral charges, and so can sales tax and title fees.
If there's one line on the contract we'd read twice, it's the trade-in. If the dealer bumped up your trade-in allowance to absorb a loan you still owed, the guideline says the manufacturer may reject the contract figure, and the Board then uses the trade-in's retail value in the NADA Official Used Car Guide, Southeastern Edition, minus that loan, which can leave the result below zero. It can go the other way too, though, since with little or no loan on the trade the NADA figure can raise the refund instead.
If you win in court, section 681.112(1) requires the manufacturer to pay reasonable attorney's fees, and section 681.1095(13) does the same when a manufacturer appeals a Board award and loses. RockPoint Law takes qualifying cases on contingency.
All of this depends on your contract and your repair history, so nobody can honestly put a number on it before they've read both.