1. 1 BUYBACK AND REPAIR UNDER LEMON LAW finition

2. 2 Table of content  Know the Lemon Law of Your State  Conditions for Lemon Law  Vehicles not covered by Lemon Law  Automobile Replacements  What Is Required of the Manufacturer?  Vehicle Buybacks  Recovery of Incidental Damages  Refund  Our contacts

3. 3 Know the Lemon Law of Your State The views of a lemon are different in every state. You should find out what your state says about your car and if it constitutes under the lemon law. There are state laws and federal laws that protect the consumer from automobile fraud and from being sold a lemon.

4. 4 The vehicle must have a serious defect or abnormal condition. The problem must substantially impair the usage or value of the vehicle, or produce a serious safety hazard. While the vehicle is under warranty, the problem must be reported to the dealer or manufacturer. A reasonable number of attempts must be made to fix the problem. Written notice must be given to the manufacturer, who gets one last chance to remedy the complaint. Conditions for Lemon Law

5. 5 Vehicles not covered by Lemon Law auto-homes; vehicles built primarily for off-road use; vehicles used primarily for business purposes; vehicles with defects caused by owner negligence, accidents, vandalism, or unauthorized repair of the vehicle by a person other than the manufacturer or authorized agent; vehicles leased before July 1, 1997.

6. 6 Automobile Replacements Under California’s lemon law, when a manufacturer provides you with a replacement vehicle, it must also pay all of the collateral charges typically accompanying the sale. This includes any sales tax, license fees, registration, and other official fees. The manufacturer cannot force you to pay any of these amounts. A manufacturer must also pay any “incidental damages” caused by your vehicle’s defects and repairs. Incidental damages are discussed in greater detail below.

7. 7 Automobile Replacements One of the first and most important things to know about the lemon law’s replacement remedy is that it is entirely optional for both the consumer and the automobile manufacturer. A lemon law replacement happens only when both parties agree on a replacement, as opposed to a buyback. You cannot force a manufacturer to offer a replacement if it doesn’t want to, and a manufacturer can’t force you to accept a replacement. Either party can insist on a lemon law buyback if they choose to do so. If the parties agree on a replacement, then the manufacturer must replace your defective automobile with a new, substantially identical car, truck, or SUV. Further, the replacement must be delivered to you with all of the warranties that typically accompany that type of new automobile. In other words, your warranty period restarts.

8. 8 The manufacturer upon reacquiring a vehicle because of specified warranty defect(s) must: Request the Certificate of Title and Registration Certificate be marked "Lemon Law Buyback." Title the vehicle in the manufacturer's name. The manufacturer will attach a decal to the vehicle. The decal will read "Lemon Law Buyback" and will be affixed to one of the following: Left door frame Frame of the major entry into the vehicle Left side of a vehicle without doors, such as a motorcycle. What Is Required of the Manufacturer?

9. 9 The manufacturer is not required to refund you for any non- manufacturer items that were installed by you, the dealership, or anyone else. It is however obligated to reimburse you for a different official fees that you paid when you purchased the vehicle. From this amount, the manufacturer is entitled to deduct a mileage offset. The mileage offset is calculated by determining which of the vehicle’s repair attempts is the first repair for the problem that caused your car to become a lemon. The mileage on the car at the first repair attempt is then divided by 120,000 and then multiplied by the automobile’s purchase price. $ The buyback amount is includes the entire amount “paid or payable” for the vehicle. In other words, it must give you enough money to compensate you for your down payment and all of your monthly payments towards the vehicle and also to pay off the vehicle’s loan. It is not however required to pay any late charges or other penalties that a consumer might have incurred under loan agreement. The amount the manufacturer pays must include compensation for any transportation charges that you paid when you purchased the automobile, along with any charges for manufacturer-installed options and manufacturer items installed by the dealership. Vehicle Buybacks

10. 10 Regardless of whether a manufacturer replaces or buys back your lemon automobile, it must also pay you for any incidental damages that you suffered as a result of your automobile’s defects and repairs. Basically, the manufacturer is obligated to pay you for any damages or harm that were clearly and directly caused by the vehicle’s defects. You can recover compensation for any repair expenses, towing charges, rental or other replacement vehicle charges, cab fare, etc. that you actually paid. If you are on hourly wage employee, then you can probably also recover any wages that you may have lost from having the take your car to and from the repair facility, and you can probably also recover damages for pain and suffering and personal injury if your vehicle’s defect resulted in you being physically harmed. Recovery of Incidental Damages

11. 11 $ New Vehicles: If you choose to get a refund, you will receive the full contract price of the vehicle including all credits and allowances for any trade-in vehicle, but a reasonable allowance for use will be deducted. The use allowance depends upon the vehicle's purchase price and mileage. For vehicles other than motorcycles, use this formula: contract price / 100,000 x mileage (contract price divided by 100,000 multiplied by mileage) For motorcycles the formula is: contract price / 25,000 x mileage (contract price divided by 25,000 multiplied by mileage) Refund

12. 12 $ Leased Vehicles: If you choose to get a refund, you will receive the total lease payments you made under the agreement. A reasonable allowance for use will be deducted based on the following formula: total payments made / 100,000 x mileage (total payments made divided by 100,000 multiplied by mileage) Refund

13. 13 01 Contact us 801 N. Brand Blvd. Suite 210 Glendale, CA 91203 Tel. (818) 553-1000 Fax (818) 553-1005 www.facebook.com/MargarianLaw www.linkedin.com/company/margarian-law https://www.youtube.com/user/dealerfraudlawyer

14. 14 01 For further information visit: http://www.dca.ca.gov/acp/buyback.shtml http://www.mass.gov/ocabr/consumer-rights-and-resources/autos/lemon-laws/new-leased-lemon-law.html http://dealerfraud.org/

15. 15 THANK YOU!