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 Santa Monica 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 Santa Monica 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 Santa Monica Lemon Law lawyers to discuss the details of your potential case.
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That means you get nearly all of your money back, minus a deduction for the amount of miles your vehicle was trouble-free.
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The people on this firm are fantastic, Veronica was always clarifying details of our events and Mr. Sina magically made a bad experience into a good one. Knowing he can take care of all the problems, calm everyone down. He was able to reduce substantially the level of stress I was going through!
Very communicative, professional, and hard working staff. Would highly recommend. I worked with Maria and Sina.
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The people on this firm are fantastic, Veronica was always clarifying details of our events and Mr. Sina magically made a bad experience into a good one. Knowing he can take care of all the problems, calm everyone down. He was able to reduce substantially the level of stress I was going through!
Very communicative, professional, and hard working staff. Would highly recommend. I worked with Maria and Sina.
Sina and the team demonstrated exceptional dedication in escalating my concerns to Chevy Bolt regarding the battery recall. Sina and Maria exhibited great patience, consistently following up with the dealer to ensure the swift resolution of my case. I highly recommend their professional services for any legal matters, as they are both prompt and diligent in resolving issues.
Sina and his team were awesome. They helped me get the most out of my two chevy bolt lemon cases. They answered every question I had and made everything so easy for me. Thanks again Sina, Maria, and everyone else on the team!
It was great working with Sina, Jonathan and Maria. All of them were super responsive to all of our questions.