How Is The Mileage Offset Calculated?

The mileage offset is calculated by taking the purchase price of the vehicle and multiplying it by the miles driven by the consumer at the first repair attempt that qualifies the vehicle as a lemon and dividing it by 120,000 miles (the average life span of a vehicle in lemon law).

Here is an Example of the How Mileage Offset is Calculated:

The purchase price of a vehicle is $25,000 dollars and it is paid entirely in cash. The consumer takes in the vehicle to the dealership for repair at 1,000, 2,000 3,000 and 4,000 miles and the vehicle is deemed a lemon as a result of all of the four repair attempts. Hence, multiply $25,000 (purchase price) x 1,000 (first repair attempt) = 25,000,000/120,000 = $208.33. Based on this scenario, the client would receive $25,000 – $208.33 = $24,791.67 after the mileage offset is calculated.

How Many Consumer Complaints Warrant An Actionable Claim For A Vehicle Under The Lemon Law?

A vehicle manufacturer must repurchase or replace a vehicle if the manufacturer is unable to repair a vehicle to conform to the manufacturer’s express warranty after a reasonable number of repair attempts. Hence, the Los Angeles, California Lemon Law does not specify a specific number for “reasonable repair attempts.” Generally, if a defect could foreseeably cause serious bodily injury or death, even two repair attempts may warrant a repurchase under the Los Angeles, California lemon law. On the other hand, if the defect is relatively less serious, perhaps impacting only the value or use of the vehicle, three or more attempts may warrant a repurchase.

In sum, there is no golden number to determine if a vehicle qualifies as a lemon. In fact, in one case, after a manufacturing defect resulted in a fire that damaged a vehicle beyond reasonable repair, the vehicle was deemed a lemon even though no prior complaints were made. Bishop v. Hyundai Motor America (1996) 44 Cal. App. 4th 750.

In addition, to the “reasonable repair attempts” criteria above, within the Song-Beverly Consumer Warranty Act, there is also a presumption guideline wherein it is presumed that a vehicle is a “lemon” if the following criteria are met:

• Within 18 months of delivery or 18,000 miles on the vehicle’s odometer there have been two or more attempts to repair a defect that could potentially cause serious bodily injury or death
• Within 18 months of delivery or 18,000 miles on the vehicle’s odometer there have been four or more attempts to repair the same warranty problem
• Within 18 months of delivery or 18,000 miles on the vehicle’s odometer the Vehicle has been at the dealership for 30 cumulative (not necessarily consecutive) days for a warranty problem.

If these conditions are met, there is a presumption that the vehicle qualifies as a lemon under the Song-Beverly Consumer Warranty Act. This rebuttable presumption shifts the burden to the manufacturer to establish that despite the presumption, the consumer is not entitled to a replacement or refund (for instance the manufacturer may argue that the problem was not substantial).

Note, Again That The “Presumption” Guideline Is Not The Only Means A Vehicle Qualifies As A Lemon. A Vehicle Can Qualify As A Lemon After 18,000 Miles And/Or 18 Months Of Delivery If The Manufacturer Is Unable To Conform To The Manufacturer’s Express Warranty After A “Reasonable Number” Of Repair Attempts. This Is Merely An Added Benefit.