If your vehicle qualifies under Texas Lemon Law, you may be entitled to a repurchase (buyback).
But what actually happens during a buyback?
Here’s a clear, step-by-step explanation of how the Texas Lemon Law buyback process works.
Step 1: Confirm You Meet Texas Requirements
Before a buyback is ordered, your case must meet one of Texas’s tests, such as:
- 4 repair attempts for the same defect
- 2 repair attempts for a serious safety hazard
- 30 cumulative days out of service
- Within 24 months / 24,000 miles
Documentation is essential.
Step 2: File a Complaint With TxDMV
Texas Lemon Law claims begin by filing a complaint with the:
Texas Department of Motor Vehicles (TxDMV).
You must:
- Complete the official complaint form
- Submit repair records
- Provide purchase documents
- Pay the filing fee (if required)
Step 3: Manufacturer Review & Mediation
Once filed:
- The manufacturer is notified
- They may offer mediation
- Settlement discussions may begin
Some cases resolve here.
Step 4: Administrative Hearing
If unresolved, a hearing may be scheduled.
During the hearing:
- Both sides present evidence
- Repair history is reviewed
- The defect and timeline are examined
The hearing officer determines whether the vehicle qualifies.
Step 5: Decision Issued
If you win, the decision may order:
- Repurchase (refund minus mileage offset)
OR - Replacement vehicle
Step 6: Calculating the Texas Buyback Amount
The buyback generally includes:
- Down payment
- Monthly payments made
- Sales tax
- Registration/title fees
- Payoff of remaining loan balance
The manufacturer may deduct a mileage offset:
(Miles at first repair attempt ÷ 120,000) × purchase price
Step 7: Vehicle Turn-In & Payment
Once finalized:
- You return the vehicle
- The loan is paid off
- You receive any remaining refund
The process can take several weeks after the decision.
Can You Negotiate Instead of Full Buyback?
Yes. Some cases result in:
- Cash-and-keep settlements
- Reduced mileage offsets
- Alternative compensation
Bottom Line
The Texas Lemon Law buyback process involves:
- Filing with TxDMV
- Mediation
- Hearing
- Decision
- Refund calculation
- Vehicle return
Preparation and documentation can significantly affect the outcome.
