What is a usage deduction?
A usage deduction is a deduction from the money you are owed.
If your Lemon Law claim has been approved, you’ll want to know “What is a usage deduction?”
According to Lemon Law lawyers, the manufacturer is entitled to deduct a usage deduction, also known as a mileage offset, for your use of the vehicle prior to the first warranty repair attempt for the issue giving rise to your Lemon Law claim.
The formula used to calculate the usage deduction is set by law and is the following: Purchase price multiplied by mileage at first repair attempt for Lemon issue divided by 120,000.
The logic behind the usage deduction formula is that the car owner/lessee had the opportunity to use the vehicle without any major problems up until a certain point. The manufacturer is entitled to keep those payments.
Here’s an example using real numbers:
- Purchase price: $50,000
- Payments made: $40,000
- Miles at first repair: 3,000
Usage Deduction = ($50,000) multiplied by (3,000) divided by (120,000) = $1,250
So in the example above, you would subtract the usage deduction from the payments made to find out what you are owed under California’s Lemon Law.
Repurchase Amount = $40,000 – $1,250 = $38,750
Our Lemon Law attorneys collect their fee from the manufacturer on top of your repurchase amount. That means you would owe nothing in attorneys fees.
Contact our Lemon Law lawyers to discuss the details of your potential case.
Click here to see if your vehicle qualifies.👇🏼
Click here to see if your vehicle qualifies.
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Our reputation.
Reputation matters. At Law and Lemon, our Lemon Law lawyers have established a highly regarded reputation with all the major car manufacturers. Manufacturers consider a Lemon Law attorney’s reputation as part of their analysis of a claim. They know we won’t back down when many other less experienced attorneys will. This increases the chances of your claim being approved.
Get your money.
If our Lemon Law attorneys successfully convince the manufacturer that your vehicle qualifies under California’s Lemon Law, we will force the manufacturer to repurchase your car. That means you get nearly all of your money back, minus a deduction for the amount of miles your vehicle was trouble-free.
No charge.
If our Lemon Law attorneys are successful in forcing the manufacturer to repurchase your car under California’s Lemon Law, the law says the manufacturer must pay our attorney’s fees and costs. This allows us to represent many people who would otherwise not be able to afford a Lemon Law lawyer.
