Page published October 27, 2026
Get the free Car Buyer’s Cheat Sheet, 7 things to know before you sign anything. The numbers that matter, in plain English, on one page.
Join the Driveonomics email list. Occasional useful updates, no spam, unsubscribe anytime.
On the worked loan below, each month undrivable costs $547.46. On the worked California example, the mileage deduction is $1,500. Those are the two headline figures on this page, and both are arithmetic on stated inputs, not averages of other people's outcomes.
Why there is no national average on this page
Lemon law is state law. Every state writes its own thresholds, its own deadlines, and its own remedies. California writes a fixed mileage formula. Missouri writes a repair count and a days out of service test, with no fixed formula. Other states differ again. So this page claims no national average settlement figure, and it uses no average settlement figure from any source. The numbers below are statute math and loan math on stated inputs, and they are labeled as such wherever they appear.
That framing matters because the alternative is worse: a single national figure would hide the differences that decide real cases. A California buyer and a Missouri buyer with the same car, the same defect, and the same repair history are not playing by the same rulebook, and a page that averaged their outcomes together would describe neither of them.
California: the mileage offset, worked out
California Civil Code section 1793.2(d)(2)(C) fixes the deduction by statute. The formula is: miles on the car at the first repair visit for that defect, divided by 120,000, multiplied by the purchase price. The 120,000 is a fixed assumed vehicle life in the statute, not a figure anyone negotiates.
| Purchase price | Miles at first repair | Offset percent | Mileage offset |
|---|---|---|---|
| $30,000 | 6,000 | 5.0% | $1,500 |
| $48,000 | 7,200 | 6.0% | $2,880 |
| $50,000 | 15,000 | 12.5% | $6,250 |
| $30,000 | 1,200 | 1.0% | $300 |
Read the last row against the first. The same $30,000 car costs $1,500 in offset when the defect is first repaired at 6,000 miles, and only $300 when it is first repaired at 1,200 miles. That is the single most valuable plain words point on this page: the offset locks at first repair mileage, not at the mileage when the claim ends. Every mile driven before the first repair ticket for that defect adds to the deduction, so reporting a defect early and keeping the repair order that shows the mileage is worth real money.
What a California buyback adds up to
In California a buyback is the purchase price, plus collateral charges (sales tax, license, registration, and official fees), plus incidental damages actually paid (towing and rental car costs), minus the mileage offset. The illustration below uses site example inputs for the tax and fee lines, and your actual collateral charges are your actual receipts, not these examples.
| Buyback illustration line | Amount |
|---|---|
| Purchase price | $30,000 |
| Sales tax at the site example rate of 7% | $2,100 |
| Title and dealer fees, site standard allowance | $900 |
| Subtotal before offset | $33,000 |
| Less mileage offset, first repair at 6,000 miles | $1,500 |
| Illustration total | $31,500 |
$30,000 plus $2,100 plus $900 equals $33,000, and $33,000 minus $1,500 equals $31,500. California also sets a presumption that helps a claim: 4 or more repair attempts for the same defect, 2 or more attempts for a serious safety defect, or more than 30 cumulative days out of service, within 18 months or 18,000 miles, whichever comes first. The presumption is not the whole law: a defect documented while the warranty was active can still support a claim outside that window, with more to prove. A replacement vehicle is the other California remedy, instead of a refund.
Formula
The California mileage offset is fixed by statute, California Civil Code section 1793.2(d)(2)(C): miles on the car at the first repair visit for that defect, divided by 120,000, multiplied by the purchase price. The 120,000 is a fixed assumed vehicle life in the statute, not a figure anyone negotiates. Four worked rows: a $30,000 car first repaired at 6,000 miles, 5.0%, offset $1,500; a $48,000 car first repaired at 7,200 miles, 6.0%, offset $2,880; a $50,000 car first repaired at 15,000 miles, 12.5%, offset $6,250; and the same $30,000 car first repaired at 1,200 miles, 1.0%, offset $300. The offset locks at first repair mileage, not at the mileage when the claim ends, so every mile driven before the first repair ticket for that defect adds to the deduction.
A California buyback is the purchase price, plus collateral charges (sales tax, license, registration, and official fees), plus incidental damages actually paid (towing and rental car costs), minus the mileage offset. The illustration on this page uses site example inputs for the tax and fee lines: purchase price $30,000, sales tax at the site example rate of 7%, $2,100, title and dealer fees at the site standard allowance, $900, subtotal before offset $33,000, less the mileage offset for a first repair at 6,000 miles, $1,500, illustration total $31,500. California also sets a presumption: 4 or more repair attempts for the same defect, 2 or more attempts for a serious safety defect, or more than 30 cumulative days out of service, within 18 months or 18,000 miles, whichever comes first. A replacement vehicle is the other California remedy, instead of a refund.
Missouri is a count and a clock, not a formula. Missouri law, Mo. Rev. Stat. 407.560 to 407.579, presumes a reasonable number of repair attempts after either of two tests, within the warranty term or one year from delivery, whichever ends earlier: 4 or more repairs of the same nonconformity, and the nonconformity still exists; or 30 or more cumulative working days out of service for repair of the nonconformity, not counting downtime for routine maintenance. The remedy is a replacement with a comparable vehicle, or a refund of the full purchase price including all reasonably incurred collateral charges, less a reasonable allowance for the consumer use of the vehicle. Missouri sets no fixed divisor like California 120,000, so this page works no Missouri offset number. The cost while the claim runs is the loan: the site standard loan also used on the totaled car loan page, $27,000 at 8% over 60 months, which is $547.46 a month. One month out of service costs $547.46 in payments for no use, two months cost $1,094.92, and three months cost $1,642.38. Payments continue whether the car drives or not, until a buyback or refund succeeds.
Missouri: a count and a clock, not a formula
Missouri law (Mo. Rev. Stat. 407.560 to 407.579) presumes a reasonable number of repair attempts after either of two tests, within the warranty term or one year from delivery, whichever ends earlier:
- 4 or more repairs of the same nonconformity, and the nonconformity still exists; or
- 30 or more cumulative working days out of service for repair of the nonconformity, not counting downtime for routine maintenance.
The remedy is a replacement with a comparable vehicle, or a refund of the full purchase price including all reasonably incurred collateral charges, less a reasonable allowance for the consumer use of the vehicle. Two steps come before court: written notice to the manufacturer is required, and if the manufacturer has an approved informal dispute settlement procedure, the consumer must use it first. A consumer who prevails in court may recover costs, expenses, and attorney fees under section 407.577.
The contrast with California is the point. Missouri law subtracts a reasonable allowance for use, but it sets no fixed divisor like California 120,000, so this page works no Missouri offset number. Any Missouri offset figure printed here would be a guess, and guesses are not printed here. Missouri law covers new motor vehicles for personal, family, or household use, so the used car question below matters for Missouri buyers too.
The cost while the claim runs: payments on a car you cannot drive
The loan is separate from the car. Payments continue whether the car drives or not, and this is the cost a lemon imposes every month while the claim runs, before any remedy arrives. The worked loan is the site standard loan also used on the totaled car loan page: $27,000 at 8% over 60 months, which is $547.46 a month.
| Months out of service | Payments made for no use |
|---|---|
| 1 month | $547.46 |
| 2 months | $1,094.92 |
| 3 months | $1,642.38 |
$547.46 times 2 equals $1,094.92, and $547.46 times 3 equals $1,642.38. A successful California buyback can return what you paid: the buyback returns the down payment, the monthly payments made, and the loan payoff, plus collateral and incidental costs, minus the offset. A Missouri refund returns the full purchase price including collateral charges, less the reasonable allowance for use. Until a buyback or refund succeeds, every payment is money out for a car providing no use, and keeping the car at the end does not return the payments. Towing and rental receipts are incidental damages actually paid in a California buyback. Elsewhere they are not guaranteed, and this page prints no daily rental figure, because no citable rental rate was sourced for this door: your receipts are the figure that matters.
Used cars and the federal route
Most state lemon laws cover new vehicles. A used car buyer is generally outside the state refund or replacement remedy, and the separate federal route is the Magnuson-Moss Warranty Act, which deals in warranty damages rather than a state buyback formula. Check both routes before assuming either applies to your car, and check your own state law first, because the state rules are the ones that decide the thresholds on this page.
Paper that protects the claim
Four habits cost nothing and matter in every state. First, get a printed repair order at every visit, showing your complaint in your own words, the mileage, and what the shop did, even when the shop writes that it could not duplicate the problem. Second, report the defect in writing to the manufacturer, since Missouri requires written notice and California practice rewards an early paper trail. Third, keep every receipt for towing, rental cars, and repairs you paid for yourself, since those are the incidental damages a buyback can return. Fourth, do not sign a release or a goodwill payment offer without reading what rights it gives up, since a signed release can end a claim that the statute would otherwise support. For what a single repair usually costs before any lemon question arises, see how much common car repairs cost, and for how a loan balance moves month by month, see how much your car payment will be.
Sources: California mileage offset formula and buyback components, California Civil Code section 1793.2(d)(2)(C), via the Power Lemon Law California Lemon Law page, https://www.powerlemonlaw.com/california-lemon-law.html, rechecked October 27, 2026. Missouri statute text, Mo. Rev. Stat. 407.560 to 407.579 (presumption at 407.571, refund or replacement at 407.567, notice at 407.573, dispute procedure at 407.575, costs and attorney fees at 407.577), via the Carlemon Missouri Lemon Law page, https://www.carlemon.com/missouri-lemon-law.html, rechecked October 27, 2026. Loan payment figures are Driveonomics amortization arithmetic on the stated $27,000 loan at 8% over 60 months, the same method as the totaled car loan page. Tax at 7% and fees of $900 in the buyback illustration are site example inputs, not any state actual charges.
Educational estimates only, not financial, tax, legal or insurance advice. Every figure on this page is a typical example worked from the inputs stated on the page, not a quote for a specific car, loan, or driver. Your rate, insurance, fuel use, and resale value will move your total. See Terms.
Calculation transparency
Scope. Lemon law cost in two states, worked as statute math and loan math on stated inputs: the California mileage offset and buyback, the Missouri repair count and days out of service test, and the loan payments on a car you cannot drive while the claim runs. No national average settlement figure is claimed anywhere on this page.
Rules and time period. California: Civil Code section 1793.2(d)(2)(C), miles at first repair divided by 120,000 times purchase price; buyback illustration uses the site example tax rate of 7% and the site standard $900 fee allowance, not any state actual charges. Missouri: Mo. Rev. Stat. 407.560 to 407.579, presumption at 407.571, refund or replacement at 407.567, notice at 407.573, dispute procedure at 407.575, costs and attorney fees at 407.577. Loan: $27,000 at 8% over 60 months, $547.46 a month.
Scope and limitations. Educational estimate only, not legal advice. Lemon law is state law, and every state writes its own thresholds, deadlines, and remedies. This page works no Missouri offset number, because Missouri sets no fixed divisor. It prints no daily rental figure, because no citable rental rate was sourced for this door: your receipts are the figure that matters. Most state lemon laws cover new vehicles, and a used car buyer is generally outside the state refund or replacement remedy, with the separate federal route under the Magnuson-Moss Warranty Act dealing in warranty damages instead. Prices vary by car, shop, and city. Get a written quote for your own car before you decide.
Source links checked November 6, 2026. Figures: California mileage offset formula and buyback components, California Civil Code section 1793.2(d)(2)(C), via the Power Lemon Law California Lemon Law page, rechecked October 27, 2026. Missouri statute text, Mo. Rev. Stat. 407.560 to 407.579, via the Carlemon Missouri Lemon Law page, rechecked October 27, 2026. Loan payment figures are Driveonomics amortization arithmetic on the stated $27,000 loan at 8% over 60 months, the same method as the totaled car loan page.
Primary sources: Power Lemon Law, California Lemon Law; Carlemon, Missouri Lemon Law; What happens to your car loan if your car is totaled; How much will my car payment be; Is an extended car warranty worth it. How the numbers are calculated is written down on the methodology page, and every source is listed on the sources page.
Definitions
Lemon law. State law that sets the thresholds, deadlines, and remedies when a new car cannot be fixed after a reasonable number of repair attempts. Every state writes its own version.
Mileage offset. The deduction that comes off a California buyback. Miles on the car at the first repair visit for that defect, divided by 120,000, multiplied by the purchase price. On a $30,000 car first repaired at 6,000 miles, $1,500.
Buyback. The California refund remedy: the purchase price, plus collateral charges and incidental damages actually paid, minus the mileage offset. On the illustration on this page, $31,500.
Presumption. A legal shortcut that shifts the burden to the manufacturer when a set test is met. In California, 4 or more repair attempts for the same defect, 2 or more for a serious safety defect, or more than 30 cumulative days out of service, within 18 months or 18,000 miles.
Nonconformity. The Missouri word for a defect that does not conform to the express warranty. Missouri presumes a reasonable number of attempts after 4 or more repairs of the same nonconformity, or 30 or more cumulative working days out of service for it.
Collateral charges. Charges on top of the purchase price that a buyback or refund can return: sales tax, license, registration, and official fees, plus incidental damages actually paid such as towing and rental car costs.
Questions people actually ask
What does a lemon really cost?
There is no single number, because lemon law is state law and every state writes its own rules. The real cost has three parts: the loan payments you keep making on a car you cannot drive, which are $547.46 a month on the $27,000 loan worked on this page; a mileage deduction that comes off a California buyback, which is $1,500 on a $30,000 car first repaired at 6,000 miles; and the time and records the claim takes, which this page does not price. Any page that quotes one national average settlement figure is selling a number, not reporting one.
How is the California mileage offset worked out?
Divide the miles on the car at the first repair visit for that defect by 120,000, then multiply by the purchase price. A $30,000 car first repaired at 6,000 miles gives 6,000 divided by 120,000, which is 5 percent, times $30,000, which is $1,500. The offset locks at that first repair mileage, not at the mileage when the claim ends, so an early repair visit keeps the deduction smaller.
What counts as a lemon in Missouri?
Missouri law presumes a reasonable number of repair attempts after either 4 or more repairs of the same nonconformity, or 30 or more cumulative working days out of service for repair of that nonconformity, within the warranty term or one year from delivery, whichever ends earlier. The remedy is a replacement with a comparable vehicle or a refund of the full purchase price including collateral charges, less a reasonable allowance for use. Written notice to the manufacturer is required, and a consumer who prevails in court may recover costs, expenses, and attorney fees under section 407.577.
Do I keep paying the loan while the car is in the shop?
Yes. The loan is separate from the car, and payments continue whether the car drives or not. On the $27,000 loan at 8 percent over 60 months worked on this page, that is $547.46 a month, so two months out of service cost $1,094.92 in payments and three months cost $1,642.38. A successful buyback can return what you paid, but until one succeeds, every payment is money out for a car providing no use.
Does lemon law cover a used car?
Generally no, not under the state refund or replacement remedy. Most state lemon laws cover new vehicles, and Missouri law covers new motor vehicles for personal, family, or household use. A used car buyer may still have a separate federal warranty route under the Magnuson-Moss Warranty Act, which deals in warranty damages rather than a state buyback formula. Check both routes before assuming either applies to your car.
Related: See what a salvage or rebuilt title car really costs, the other kind of problem car.