If your vehicle qualifies under the Texas Lemon Law, you may be entitled to a repurchase (buyback) from the manufacturer.
But most consumers immediately ask:
“If Texas Lemon Law buys back my car, how much money will they deduct for mileage?”
Texas law allows manufacturers to take a deduction for your use of the vehicle. This is often called the:
- repurchase offset
- mileage offset
- reasonable use deduction
- usage fee
This deduction can reduce the amount of money you receive in a Texas Lemon Law repurchase.
Below is a clear explanation of how the Texas offset is calculated — with examples.
What Is the Texas Lemon Law Repurchase Offset?
A Texas Lemon Law repurchase is designed to refund what you paid for a defective vehicle.
However, Texas law generally allows the manufacturer to deduct an amount for the miles you drove before the defect became a serious problem and before the manufacturer had a reasonable chance to fix it.
That deduction is the repurchase offset.
In plain terms:
👉 You may get most of your money back, but not necessarily all of it.
Texas Lemon Law Offset Formula (Mileage Deduction)
Texas typically uses a formula similar to:
(Miles driven before the first repair attempt ÷ 120,000) × Purchase price
This formula is used to calculate the “reasonable allowance for use.”
In most cases, the mileage deduction is based on:
✅ the odometer reading at the first repair attempt for the defect
not the mileage at the time of repurchase
This is one of the most important issues in Texas buyback calculations.
Texas Repurchase Offset Example
Let’s say your vehicle purchase price was $50,000 and the first repair attempt occurred at 7,500 miles.
Texas offset calculation:
7,500 ÷ 120,000 = 0.0625
0.0625 × $50,000 = $3,125
So the manufacturer may deduct approximately $3,125 from your repurchase refund.
Another Example (Lower Mileage)
Vehicle purchase price: $38,000
First repair attempt: 2,000 miles
2,000 ÷ 120,000 = 0.0167
0.0167 × $38,000 = $634
In this example, the deduction is only about $634.
That’s why the timing of the first repair attempt is so important.
What Mileage Does Texas Use?
In most Texas Lemon Law repurchase cases, the mileage used for the offset is based on:
- the mileage when you first presented the vehicle for repair of the defect
Not:
- the mileage at buyback
- the mileage after multiple repair visits
- the mileage after months of waiting on parts
This matters because manufacturers sometimes try to use the higher mileage figure to increase the deduction.
What Counts as the “Purchase Price” in Texas?
Texas Lemon Law repurchase calculations often involve the vehicle’s:
- base purchase price
- taxes
- title fees
- license fees
- registration fees
However, what is included can vary depending on the specific repurchase terms and the type of claim.
Texas repurchase cases often involve negotiation over what should be included in the refund.
What Costs Can Be Reimbursed in a Texas Lemon Law Repurchase?
In many cases, Texas Lemon Law repurchase amounts may include reimbursement for:
- down payment
- monthly payments made
- sales tax
- registration and title fees
- payoff of remaining loan balance
- towing costs (if related to defect)
- rental car expenses (in some cases)
Each case depends on documentation and the buyback agreement.
What Will NOT Be Refunded Under Texas Lemon Law?
Even if your vehicle qualifies, Texas manufacturers may try to exclude or deduct certain amounts, such as:
- mileage offset / reasonable use deduction
- excessive wear and tear
- aftermarket modifications
- certain add-ons (depending on the contract)
Some manufacturers may also dispute reimbursement for:
- extended warranties
- GAP insurance
- service plans
These issues can vary based on the purchase paperwork.
How Much Is the Texas Lemon Law Offset Usually?
The Texas offset depends heavily on mileage.
Here are some quick examples using the 120,000 formula:
Example 1
Purchase price: $45,000
First repair: 3,000 miles
Offset: (3,000 ÷ 120,000) × 45,000 = $1,125
Example 2
Purchase price: $60,000
First repair: 10,000 miles
Offset: (10,000 ÷ 120,000) × 60,000 = $5,000
Example 3
Purchase price: $30,000
First repair: 1,500 miles
Offset: (1,500 ÷ 120,000) × 30,000 = $375
As you can see, the deduction is often smaller than consumers fear — especially when the defect appears early.
Can You Dispute the Texas Offset Calculation?
Yes.
Consumers should verify that the manufacturer used:
- the correct first repair date
- the correct odometer reading
- the correct purchase price
- the correct formula
Even a small mistake can change the offset amount by hundreds or thousands of dollars.
What If the Vehicle Has Multiple Defects?
If you have multiple warranty problems (engine, transmission, electrical issues, etc.), the offset may depend on:
- the first repair attempt related to the defect that forms the basis of your lemon law claim
This can become a key legal and factual issue.
What If You Leased the Vehicle in Texas?
Texas Lemon Law may apply to leased vehicles as well.
The offset calculation may still apply, but the refund may involve:
- lease payments made
- down payment / cap cost reduction
- payoff to the leasing company
- fees and taxes
Lease repurchases can be more complicated, but mileage offsets are still a major factor.
Can You Avoid the Texas Mileage Deduction?
Usually, no — the mileage offset is part of Texas Lemon Law’s statutory repurchase calculation.
However, some cases resolve through settlement rather than strict statutory repurchase, and a settlement may include:
- reduced offset
- “cash and keep” payments
- reimbursement of additional costs
The Bottom Line
Texas Lemon Law repurchases often include a mileage offset (reasonable use deduction), commonly calculated as:
(Mileage at first repair attempt ÷ 120,000) × purchase price
Even with an offset, many Texas consumers still recover most of what they paid — especially when the defect appeared early.
Need Help With a Texas Lemon Law Repurchase?
If your vehicle has repeated repair visits, extended time in the shop, or serious warranty defects, you may qualify under Texas Lemon Law.
A lemon law attorney can help you:
- confirm eligibility
- calculate the correct repurchase offset
- dispute an inflated mileage deduction
- negotiate the best possible refund or settlement
The sooner you document repairs and act, the stronger your case may be.
