logo
logo
Sign in

All you need to know about mileage offset under Maryland lemon law

avatar
Allen Stewart
All you need to know about mileage offset under Maryland lemon law

If your purchased vehicle fails to offer intended services under the manufacturer’s warranty even after multiple repair attempts were made to resolve it, then your car is deemed as “lemon.” And by that, it means you will be eligible for either a refund or a replacement.

But, if your car has defects and still isn’t a potential lemon. Then the automaker will offer you compensation and even let you keep the vehicle.

Even though the whole process of Maryland lemon laws may seem very simple, but many people get confused when the word “mileage offset” is used during the refund process. 

So, let’s take a look at what is refund process, mileage offset, and how mileage offset gets calculated. 

What is the refund process?

A refund or buyback process is one of the two remedies offered for a defective car. Your buyback process will consist of steps like:

The automaker will take the car back from you

He will then proceed to pay off the loan on the car and even take the car title

The automaker will offer you reimbursements on the money you paid, like the down payments and monthly installments. He will also be entitled to pay off collateral charges like tax, out-of-pocket charges that you paid due to the defect in the car

The manufacturer will be able to deduct an offset from the reimbursement. 

What is the mileage offset?

In the context of lemon law, the mileage offset is nothing but the miles driven on your vehicle before it was deemed a lemon. And according to the lemon law refund remedy, the manufacturer has the right to deduct the “mileage offset” before providing you the overall refund. 

So, the automaker will proceed to calculate the mileage offset using a particular formula, and then he will deduct his share to provide you with the remaining.

What is the mileage offset formula?

The formula set for mileage offset is:

The price paid by the consumer for the vehicle X Miles driven by the consumer before the first attempt for the defect was made / 120,000 = mileage offset.

For example,

The price paid by you = 20,000

Miles drove by you before first repair = 9,000

So, (20,000 X 9000) / 120,000 = $ 1,500

As per the above-provided example, your automaker will have the right to deduct a sum of 1,500 as a mileage offset before settling the remaining funds to you. 

Bottom line

We are hopeful that this article was able to offer proper information on the refund process, mileage offset, and how it gets calculated. 

If you are stuck with a lemon car, then start your journey towards victory by hiring a competent attorney under lemon law in Maryland to contest the case properly. 

Andrew Richardson is the author of this Article. To know more about Lemon Law on new Cars in Arkansas please visit our website: allenstewart.com

collect
0
avatar
Allen Stewart
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more