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) has it repay your reasonable incidental costs and then either replace the vehicle with a comparable one or take it back and refund the full purchase price less a reasonable allowance for your use. You can say which you'd prefer, and the examiner is to accommodate that "to the extent possible."
Check who the order says pays
Under section 2301.608(a), every order must name the person responsible for paying for the refund or replacement, and the manufacturer may not push onto a franchised dealer any cost the order doesn't assign to it. Read that line first. It tells you who you're dealing with once you accept.
The refund figure
The starting point is the total purchase price, leaving out interest, finance charges and insurance premiums. The $35 filing fee is added back, and a lender with a lien shares in the refund. The use allowance runs against a presumed useful life of 120,000 miles, split at the first time you reported the defect. A made-up example: a $39,000 SUV first written up for the defect at 7,500 miles, reaching a hearing at 19,500 miles.
- The first 7,500 miles, at the full rate: 7,500 ÷ 120,000 × $39,000 = $2,437.50.
- The next 12,000 miles would be $3,900 at the full rate, so at half rate they cost $1,950.
- Take the $4,387.50 deduction off the price and add the fee back: $34,647.50, before any lender's share.
It illustrates the formula; it doesn't value your case. Our Texas buyback calculator runs it on your own figures.
Costs, repairs and the resale rules
With a refund or replacement, 43 TAC section 224.262 repays reasonable, verifiable costs from losing the vehicle, such as alternate transportation and towing. If neither remedy fits, the examiner can still order repair work. A vehicle taken back under an order must be retitled in Texas, repaired, and resold with a disclosure statement, a department-approved label and a warranty of at least 12 months or 12,000 miles (43 TAC section 224.266(e)-(h); section 2301.610). Subchapter M has no clause that shifts your lawyer's fees; a court may award them on a winning Magnuson-Moss claim.