Cash-and-Keep Settlements in Georgia Lemon Law Cases

A cash-and-keep settlement is a negotiated outcome where the consumer keeps the vehicle and receives a cash payment. Not a statutory remedy under the Georgia Lemon Law — but common in court action settlement and not available through state arbitration (which only orders refund or replacement).

Why cash-and-keep happens

The defect has been substantially repaired, the consumer is comfortable continuing to drive, the manufacturer wants to resolve without taking back the vehicle.

How the cash amount is determined

• What a full refund would yield, less use deduction, less vehicle’s current trade-in value.
• FBPA willfulness exposure — TSB record, internal warranty data.
• Litigation cost the manufacturer avoids.
• Title Ad Valorem Tax baked into the offer.

Typical: 30-60% of what a refund would yield, plus separate fee payment.

Pros

• No vehicle disruption.
• No TAVT to pay on a replacement purchase.
• Faster resolution.
• Better for intermittent defects.

Cons

• Defect could recur.
• Release of claims is broad.
• Resale difficulty if defect is disclosed.

When cash-and-keep is the right choice

• You like the vehicle.
• The defect has been substantially repaired.
• The use deduction on a refund would be punishing (especially near 24,000 miles).
• The manufacturer is offering a meaningfully high number.
• Strong FBPA willfulness facts that justify a damage-heavy structure.

When to push for refund instead

• Defect still active.
• Serious safety defect.
• Strong FBPA willfulness facts where treble damages exceed the cash-and-keep number.

State arbitration cannot grant cash-and-keep

The New Motor Vehicle Arbitration Panel can only order Lemon Law statutory remedies — refund or replacement. Cash-and-keep is exclusively a court-action settlement product.

Bottom line

Cash-and-keep is useful when avoiding title transfer. Combined with FBPA mandatory attorney fees, it produces strong outcomes — but for unresolved or safety-related defects, refund is generally preferable. Only available through court action; not available through state arbitration.

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