Outcomes
What compensation can you receive?
If you win, section 2301.604(a) has the manufacturer, converter or distributor reimburse your reasonable incidental costs from loss of use, and either replace the vehicle with a comparable one or take it back and refund the full purchase price, less a reasonable allowance for use. The statute doesn't give the owner the choice between those two, but TxDMV's rule softens that: under 43 TAC section 224.260(a)(2) the examiner will, "to the extent possible, accommodate the complainant's request."
What counts as the purchase price
TxDMV's rule defines it as the total purchase price, excluding interest, finance charges and insurance premiums. The buyback includes taxes, title and license fees, and it carries the $35 filing fee back to you. Where a lender holds a lien, the money is split according to each one's interest under section 2301.604(b). A lease has its own formula in section 224.260(c), and section 2301.608(c) lets the order end the lease outright.
The use deduction, worked through
The rule presumes a useful life of 120,000 miles, which either side can try to rebut. Take a made-up example with round numbers: a $62,000 pickup, first written up for the defect at 9,000 miles, reaching the hearing at 21,000 miles.
- The first 9,000 miles cost their full share: 9,000 ÷ 120,000 × $62,000 = $4,650.
- The next 12,000 miles would cost $6,200 at the full rate, so at half rate they cost $3,100.
- The deduction is $7,750, leaving $54,250, and the $35 fee goes back on top: $54,285 before any lender's share.
That illustrates the formula, not a forecast for your truck. The first-report mileage drives the whole thing, and it comes straight off a repair order. A truck that went in at 9,000 miles but was written up for something vaguer loses that split point. Our Texas buyback calculator runs the same arithmetic on your figures.
If you ask for a replacement
Under section 224.260(d) the manufacturer authorizes an exchange for a comparable vehicle you pick. The dealer prices the new one at MSRP and credits yours at its original MSRP, less the same use allowance. You pay or finance that allowance, any lien, and the taxes and fees on the new sale other than documentary fees. If the exchange can't be finished in the time the order sets, the manufacturer has to repurchase instead.
After the order
The manufacturer has to fix the defect back to factory specification, issue a new 12-month, 12,000-mile warranty, and send a disclosure statement with the vehicle through its next retail sale under section 2301.610. Subchapter M has no fee-shifting provision. The fee statute that matters is federal: under 15 U.S.C. section 2310(d)(2), a court may let a consumer who wins a Magnuson-Moss claim recover them.