Recalde Lemon Law

The Lemon Law Refund Calculation: What You Get Back and the Use Offset

Process & RightsMay 12, 20266 min read

The first question most owners ask about a Florida lemon claim is the practical one: if the manufacturer has to buy this vehicle back, what does that actually mean in dollars? The statute answers with a formula, and the formula is worth understanding before any settlement conversation starts.

This guide walks through each piece of the repurchase calculation, including the one deduction the law allows.

The three things a refund includes

When a manufacturer repurchases a vehicle under section 681.104 of the Florida Statutes, the refund has three components.

The purchase price. The full price paid for the vehicle, including any trade-in allowance you received as part of the deal.

Collateral charges. The charges that rode along with the purchase: sales tax, license and registration fees, title fees, dealer-installed options on the vehicle as delivered, and similar costs the consumer would not have paid but for the purchase.

Finance charges. The interest the consumer actually paid on the loan or lease up to the repurchase. Owners who have been fighting a defect for a year often forget this piece, and it is real money.

For leased vehicles, the refund concept translates into the lease payments and charges the lessee has borne, and the lease is terminated without penalty.

The one deduction: the reasonable offset for use

The statute lets the manufacturer subtract a single amount, called the reasonable offset for use. The idea is that the consumer did get some use out of the vehicle before it revealed itself as a lemon, and the manufacturer does not have to pay for those miles.

The formula is set by statute. For most vehicles:

Input Meaning
Purchase price The price used in the refund calculation
Miles Miles attributable to the consumer up to the first repair attempt for the defect
Divisor 120,000 for most vehicles, 90,000 for recreational vehicles

The offset equals the purchase price, times the miles, divided by the divisor.

Worked examples

Example one. A $40,000 sedan had 6,000 miles on it when it first went in for the stalling problem. The offset is $40,000 x 6,000 / 120,000, which is $2,000. If the owner also paid $2,800 in tax and fees and $1,400 in finance charges so far, the refund is $40,000 + $2,800 + $1,400 - $2,000 = $42,200.

Example two. A $90,000 motorhome chassis claim with 9,000 miles at the first repair attempt uses the recreational vehicle divisor: $90,000 x 9,000 / 90,000 = $9,000 offset.

Two features of the formula favor consumers. The mileage freezes at the first repair attempt for the defect, so the miles you drove afterward, while the dealer kept trying and failing, do not increase the offset. And the 120,000 divisor is generous; it implicitly treats a vehicle as delivering value across 120,000 miles, which keeps the offset small for problems that appear early.

What the refund does not include

The statutory refund is not a damages award. It generally does not cover aftermarket accessories you added yourself, lost wages, or inconvenience. Costs like towing and rental cars connected to the defect can be recoverable as incurred charges, so keep those receipts. The broader documentation habit is covered in the evidence checklist guide.

What about attorney fees? They are added alongside the remedy rather than subtracted from it: Florida's Lemon Law allows a consumer who prevails in a civil action to recover attorney fees from the manufacturer. If there is no recovery, you owe us no attorney fee. Court costs and expenses may apply and are explained in writing before we begin.

The loan payoff question

A refund transaction must clear the lien on the vehicle. In practice, the manufacturer pays the lender what is owed and pays the consumer the balance of the refund. Owners who are upside down on the loan, owing more than the refund total, should understand the numbers before agreeing to anything, because the structure of the payoff affects what lands in their pocket. Running the statutory math first is exactly how to evaluate any settlement offer, including the offers discussed in the settling before arbitration guide.

Refund or replacement

The refund is one of two remedies; the other is a comparable replacement vehicle. The consumer, not the manufacturer, chooses between them, and the right choice depends on the numbers above plus practical questions about the model and the market. The comparison is laid out in the refund versus replacement guide.

Where this leaves you

The refund formula is mechanical, which is good news: it means the outcome of a successful claim is largely arithmetic, not negotiation theater. Gather the purchase contract, the loan statement, and the first repair order, and the number mostly computes itself. For help running your figures, the free case check at the Recalde client portal takes about two minutes, or call (305) 792-9100. Se habla español.

This article is general information about Florida law, not legal advice about your situation. Attorney advertising.