Is a down payment included in a lemon law buyback?

Yes. The price paid used in the mileage-offset calculation is the total price paid for the vehicle, which includes any down payment as part of that total.

California Lemon Law Buyback Calculator — California Lemon Law Guide

Q: How is the California lemon law buyback amount calculated?

Restitution generally equals the price paid for the vehicle, plus tax, registration, and finance charges actually paid, plus incidental costs, minus a mileage-based offset. The offset is the purchase price multiplied by the mileage at the first repair attempt, divided by 120,000, under Civil Code section 1793.2(d)(2)(C).

Last reviewed September 10, 2026.

If your vehicle qualifies under California’s lemon law, the manufacturer generally owes you one of two things: a comparable replacement vehicle, or restitution — your money back, less a deduction for the use you got before the defect first showed up. This page explains how that deduction is calculated and lets you estimate it.

This calculator gives an estimate for informational purposes only. It is not a settlement offer, a guarantee, or legal advice. Use the case evaluation form to have your actual numbers reviewed.

The calculator

Total purchase price ($)

Include the base price plus manufacturer-installed options. Do not include third-party add-ons like aftermarket accessories.

Sales tax, registration, and license fees paid ($)

Finance or lease charges paid to date ($)

Interest or lease charges actually paid so far — not the full remaining loan balance.

Incidental costs caused by the defect ($)

Towing, rental car costs, or repair-related out-of-pocket expenses.

Odometer mileage at your FIRST repair attempt for the defect

Not your current mileage — the mileage when the problem was first brought in.

How the formula works

The mileage offset comes directly from Civil Code §1793.2(d)(2)(C):

The amount to be subtracted… shall be determined by multiplying the actual price of the new motor vehicle paid or payable by the buyer… by a fraction having as its numerator the number of miles traveled by the new motor vehicle prior to the time the buyer first delivered the vehicle to the manufacturer or distributor, or its authorized service and repair facility, for correction of the problem that gave rise to the nonconformity, and having as its denominator 120,000.

In short:

Offset = Purchase price × (mileage at first repair attempt ÷ 120,000)

The key detail people get wrong: it’s the mileage at your first repair visit for that specific defect — not your current odometer reading. If you bought the car with 4,200 miles on it and the defect first appeared then, that’s your number, even if the car now has 40,000 miles from all the time it’s spent waiting on repairs and being driven while the manufacturer tried to fix it.

What restitution includes

Beyond the price minus the offset, restitution under §1793.2(d)(2)(B) is meant to include:

Sales tax, license fees, and registration fees you paid
Finance or lease charges actually paid (not the full loan payoff)
Incidental damages caused by the defect — towing, reasonable rental costs, and similar out-of-pocket expenses directly tied to the nonconformity

Replacement instead of restitution

You can generally choose a comparable replacement vehicle instead of a cash buyback, though in practice most consumers and manufacturers settle on restitution because it’s simpler to value. If replacement is offered, the same mileage-offset logic can be used to calculate what you owe for your use of the original vehicle.

The civil penalty is separate — and not guaranteed

Civil Code §1794(c) allows a court to award up to two times actual damages if the manufacturer’s failure to comply with the Act was willful. This is a court-determined multiplier based on the manufacturer’s conduct — for example, ignoring a documented defect or failing to make a good-faith effort to repair or repurchase. It is never automatic, and this calculator does not attempt to estimate it. If you have a well-documented case with a manufacturer that dragged its feet, this is something to raise directly — see find an attorney by region.

/requirements/ — do you qualify · /manufacturers/ — notice addresses by brand · /time-limit/ — filing deadlines

Worked example

You paid $38,000 (including tax, registration, and options) for a new truck, plus $2,100 in finance charges and $450 in rental-car costs while it sat in the shop. The transmission problem first appeared and was brought in for repair at 6,500 miles.

Offset = $38,000 × (6,500 ÷ 120,000) = $2,058
Restitution = ($38,000 − $2,058) + $2,100 + $450 = $38,492

Note the restitution can end up higher than the original price paid once tax, finance charges, and incidental costs are added back — the offset only reduces the base vehicle price, not those additional categories.

Frequently asked questions

How is the California lemon law buyback amount calculated? Restitution equals the price paid (plus tax, registration, and finance charges actually paid, plus incidental costs), minus a mileage-based offset. The offset is the purchase price multiplied by the mileage at your first repair attempt, divided by 120,000, per Civil Code §1793.2(d)(2)(C).

Is my down payment included in the buyback? Yes — the “price paid” the offset is calculated against is the total price you paid for the vehicle, which includes any down payment as part of that total.

Is the civil penalty automatic? No. A civil penalty of up to two times actual damages under Civil Code §1794(c) is awarded only if a court finds the manufacturer’s failure to comply was willful. It’s case-specific, not a guaranteed multiplier, and this calculator doesn’t estimate it.

Sources

Civil Code §1793.2(d)(2)(B)–(C), §1794(c) — leginfo.legislature.ca.gov.

This page is attorney advertising and general information; the calculator above is an estimate, not a settlement offer or legal advice. See our terms and privacy policy.