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Cash and Keep Settlement Lemon Law

cash and keep settlement lemon law

While car buyers tend to choose either a lemon law buyback or a replacement vehicle in a lemon law claim, many choose the cash and keep settlement lemon law instead. While the first two options do provide a remedy when you purchase lemon vehicles, the latter is also an option if you wish to keep the vehicle and get some cash in your pocket.

Before you start looking to pursue a lemon law claim, either by yourself or with the help of a lemon law attorney, you should know which state your case will apply to. Depending on where you purchased your vehicle, your case may work differently. For example, if you bought your car in California but live in Texas, you would need to look for an attorney in California to help you.

How Cash and Keep Settlement Works

When you want to settle your lemon law claim with cash and keep settlement, you can receive cash compensation for the diminished value of your vehicle and keep the car (hence the name cash and keep). If you are okay with driving your vehicle even if it has defects that are unable to be repaired after a reasonable number of times, cash and keep is the option that you would want to pursue.

Cash and keep will also be your go-to option if the problems or defects that your vehicle experience are not substantial enough to consider it a “lemon.” Often times, the problems or defects are not significant enough that the refund and the replacement options are applicable to your situation. This is a great sigh of relief for those whose vehicles are experiencing problems but are not substantial enough to pursue as a lemon law claim.

Alternatives to Cash and Keep Settlement

If your vehicle has problems or defects that are substantial, you have the following two options that you may pursue: lemon law buyback and a replacement vehicle.

Lemon Law Buyback

How the lemon law buyback works depends if you purchased or leased your vehicle, but both include almost identical items.

If you purchased your vehicle and is considered a “lemon,” you will be able to get from your buyback:

  • All monthly payments and down payment,
  • Any associated charges including, sales tax, service contracts, finance charges, and prorated registration fees,
  • Any costs that resulted from your vehicle being a lemon, including rental car and tow expenses, and
  • Your loan balance payment.

If you leased your vehicle and is considered a “lemon,” you will be able to get from your buyback:

  • All lease payments and down payment,
  • Any associated charges, including sales tax, service contracts, finance charges, and prorated registration fees,
  • Any costs that resulted from your vehicle being a lemon, including rental car and tow expenses, and
  • Your remaining lease obligations.

When you choose to receive a buyback, know that the average lemon law settlement in California should not take longer than thirty days.

Replacement Vehicle

If your vehicle is considered a “lemon” under the lemon law, the manufacturer must offer a replacement vehicle that:

  • Is considerably same as your vehicle at the time of purchase,
  • Has the same service contract applied,
  • Includes any additional options that came with the vehicle, and
  • Refunds you for any costs that resulted from your vehicle being a lemon, including rental car and tow expenses.

Get Help Pursuing Cash and Keep Settlement Lemon Law

If you believe that your vehicle has substantial problems or defects and will be considered a “lemon” under the lemon law, you will want to talk to an attorney that you can trust to make sure that your case is won. Contact our experienced lemon law attorneys at Consumer Action Law Group for a free consultation. We will answer any questions you might have about your lemon claim and take the appropriate action to help you win. Call our office at (818) 254-8413 for a free consultation today!

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