🚗 Repurchase / Replacement FAQs

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💵 How many checks will I receive?

In most lemon law buyback settlements, the manufacturer issues one or two checks:

1. Vehicle Payoff / Lienholder Check

   • If you have a loan or lease, the manufacturer typically sends a check directly to your lender to satisfy the remaining balance.

2. Consumer Reimbursement Check

   • This check covers your down payment, monthly payments made, incidental expenses (if included), taxes, registration, and other reimbursements required under your state’s law.

Some states or settlement structures may require the manufacturer to issue additional checks (for example, registration fees, attorney’s fees, or a separate mileage-offset refund).

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🚘 What information does the manufacturer need to process my buyback?

Manufacturers cannot begin processing a repurchase or replacement until they receive all required information. This may include:

• Copy of your vehicle registration (current and valid)

• Lienholder information (lender name, account number, payoff address)

• Exact payoff amount (usually valid for 10–15 days)

• Proof of payments (sometimes required for reimbursement verification)

• Driver’s license for identity verification

• Completed settlement forms provided by the manufacturer

• All keys, fobs, and accessories that came with the vehicle (at the time of vehicle return)

Providing this information promptly helps avoid delays.

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💰 How long does the manufacturer take to issue payment?

Most manufacturers issue payment within 20–45 days after receiving:

• All required documents, and

• Confirmation that the vehicle has been returned (turn-in appointment completed)

Some manufacturers take longer due to internal processes, lienholder coordination, or holidays. We monitor the status continuously and follow up as needed.

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🔧 What happens at the vehicle surrender appointment?

During your surrender appointment:

1. You meet with the dealer or manufacturer’s representative.

2. They inspect the vehicle for major alterations (normal wear is acceptable).

3. You hand over:

   • Keys / fobs

   • Registration

   • Any required documents

4. You sign the return paperwork confirming the vehicle is being surrendered.

You typically do not need to purchase a new vehicle from that dealership unless this is a replacement settlement.

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💵 Do I keep making payments on my vehicle?

Yes—continue making payments until the buyback is complete unless we have advised you otherwise in writing.

Stopping payments prematurely may:

• Affect your credit

• Delay the buyback

• Increase the payoff amount

Once the lender receives payment from the manufacturer, your account will be closed.

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📄 What if my registration is expired?

Some manufacturers require current registration before processing a buyback. If needed, we will advise you on whether to renew or whether the manufacturer will accept expired registration.

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📄 What happens to my extended warranty, GAP insurance, or service contracts?

After the vehicle is repurchased:

• Extended warranties are typically refunded by the warranty provider.

• GAP policies may issue a pro-rated refund.

• Service contracts often require a cancellation request.

We can guide you through contacting each provider if applicable.

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🚘 How is the mileage offset deduction calculated?

Most states allow the manufacturer to reduce the refund by a usage deduction based on:

• The mileage at first repair attempt, and

• The vehicle’s purchase price

Each state uses a different formula, and we calculate the exact number before you accept your settlement. This deduction shows up on your settlement worksheet.

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💵 When will I receive my attorney’s fee payment?

Attorney’s fees are typically paid directly to our firm by the manufacturer and do not reduce your recovery. This payment may arrive separately from your consumer check or may arrive as part of your refund check.

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🚘What if I choose a replacement vehicle instead of a repurchase?

For a replacement:

• You receive a comparable new vehicle of the same model/trim (or closest available).

• You may be responsible for mileage charges, taxes, or registration differences, depending on state law.

• You return your current vehicle during the exchange.

We review the numbers with you before you choose this option.

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🏦 What if I continue making payments and I overpay on the vehicle?

Negative equity occurs when your loan balance is higher than the value of the vehicle—for example, when a prior loan balance was rolled into your financing or the vehicle depreciated faster than expected.

In a lemon law repurchase, negative equity can reduce the amount of money you personally receive, depending on how your state calculates refunds and how your financing was structured. Here’s how it works:

• The manufacturer will still pay off your loan directly with your lender.

• Your refund check to you is calculated after accounting for negative equity.

• If a significant amount of negative equity was rolled into the original finance contract, the manufacturer’s calculations may result in a lower refund check, because the law does not always require reimbursement of amounts unrelated to the vehicle itself.

• In some situations, if the negative equity is large enough, you may receive little or no refund check, although your loan will still be fully satisfied.

We will review the payoff, purchase documents, and state-specific formulas with you so you understand exactly how negative equity affects your refund before the buyback is completed.

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❓ Who should I contact with questions during the process?

You can reach our office anytime for:

• Status updates

• Help gathering documents

• Questions about scheduling the surrender

• Understanding the refund breakdown

We communicate directly with the manufacturer to keep the process moving.