Outcomes
What compensation can you receive?
If the manufacturer can't fix a qualifying defect after a reasonable number of attempts, section 2301.604(a) requires it to reimburse your reasonable incidental costs and either replace the vehicle with a comparable one or accept its return and refund the full purchase price, less a reasonable allowance for your use. TxDMV's rule has the examiner accommodate your request between the two "to the extent possible" (43 TAC section 224.260(a)(2)).
What goes into the refund
The starting figure is the total purchase price, without interest, finance charges or insurance premiums. A buyback includes taxes, title and license fees, and the $35 filing fee goes back on top. Where a lender holds a lien, the refund is paid to you and the lender according to each one's interest under section 2301.604(b). On a company vehicle financed through a commercial lender, get the payoff figure early, since it shapes what the business actually receives.
The use deduction, step by step
TxDMV presumes a useful life of 120,000 miles, and either side can offer evidence for a different figure. An invented example: a $48,000 minivan first written up for the defect at 5,000 miles, reaching a hearing at 17,000 miles.
- Delivery to first report, at the full rate: 5,000 ÷ 120,000 × $48,000 = $2,000.
- First report to the hearing, at half rate: the next 12,000 miles would be $4,800, so they cost $2,400.
- The deduction is $4,400, leaving $43,600, and the $35 fee brings it to $43,635 before any lender's share.
That shows how the formula works, not what your case is worth. The split point comes straight off a repair order, one more reason to read each order before you sign it. Our Texas buyback calculator runs it on your own numbers.
Incidental costs, replacement and repair
With a refund or replacement, 43 TAC section 224.262 pays back reasonable, verifiable costs from loss of use, starting with alternate transportation and towing. DART fares and ride receipts count if you kept them. A replacement is a new vehicle from the same product line, of the same model year or newer, priced MSRP against MSRP less the use allowance. Where the vehicle qualifies for neither, the examiner can still order repair work, and a lease can be ended under section 2301.608(c). Subchapter M has no fee-shifting provision. A court may award fees on a winning Magnuson-Moss claim.