Outcomes
What Compensation Can You Receive?
When the defect is still there after a reasonable number of attempts, section 681.104(2)(a) gives the manufacturer 40 days to act. It must either repurchase the vehicle and refund the full purchase price, less a reasonable offset for use, or replace it with a vehicle you find acceptable, in return for that same offset. Both remedies include the collateral and incidental charges you reasonably paid. And the statute goes so far as to call your right to choose the refund over a replacement unconditional, which is about as plain as statutes get. A replacement has to be identical or reasonably equivalent, which section 681.102(21) defines as a sticker price no more than 105 percent of the original's.
When there is a loan, the statute splits the refund between you and the lienholder according to each one's interest. What usually happens in real life is that the manufacturer clears the loan balance, and your share is whatever you paid toward the car, less the offset. On a lease, the lessee cost (your deposit and rental payments) comes to you, the leasing company receives the lease price minus that amount, and you cannot be charged an early termination penalty.
How the offset is worked out
The charge for your use comes out of section 681.102(19), and here's how the Attorney General's remedy guideline puts it to work:
- Grab the base selling price off the purchase invoice, leaving out taxes, government fees and dealer fees (on a lease you use the agreed-upon value instead, reduced by any manufacturer rebate).
- Multiply that by the miles attributable to you, counting up to a settlement or the hearing, whichever comes first.
- Then divide by 120,000, or by 60,000 if it's a recreational vehicle.
It's easier to see with a couple of cars on the table. A $36,000 crossover with 15,000 of your miles on it carries a $4,500 offset, while a $54,000 SUV with 20,000 of your miles carries $9,000. Before any of that, though, the miles that are not yours get backed out, since the guideline takes off the odometer reading at delivery (a big deal on a demonstrator) along with road tests run by service technicians, manufacturer inspectors, program inspectors and Board members.
On a financed purchase, the guideline builds your side of the ledger out of the cash down payment, the loan payments made so far with interest, collateral charges you paid outside the loan such as tint or an extended warranty, and the trade-in allowance, then knocks off the offset and adds back incidental charges like a rental car, towing and even postage. The trade-in is the line to squint at, because it can cut both ways. Where a dealer padded the trade-in figure to absorb a loan still owed on the old car, the guideline says the Board may substitute the NADA Southeastern retail figure minus that old debt, which can leave the trade-in as a negative number.
There are three ways attorney's fees can end up on the manufacturer's tab: a consumer who wins a Chapter 681 lawsuit is owed them under section 681.112(1); a manufacturer that appeals a Board award and loses pays them under section 681.1095(13); or a court awards them under federal warranty law. For what it's worth, at RockPoint Law qualifying cases are taken on contingency.
A bought-back car doesn't get a clean slate, either. Under section 681.114 it cannot be sold or leased again without a clear disclosure of the defect and a manufacturer warranty on that repair lasting a year or 12,000 miles, whichever ends first, and the Attorney General publishes a searchable list of vehicles reported as bought back.
Every claim turns on its own facts, though, and no lawyer can honestly tell you the outcome in advance.