Refund Under Georgia Lemon Law

A refund is the standard remedy in Georgia Lemon Law cases.

What the manufacturer must refund

Under O.C.G.A. § 10-1-784(b):

1. The full vehicle purchase price including dealer-installed options.
2. All collateral charges — Title Ad Valorem Tax (TAVT), title and registration fees.
3. Incidental damages — towing, rental, lost time.
4. The remaining loan balance paid directly to the lender.

The “reasonable allowance for use”

Typical formula under § 10-1-784(b)(1):

(Miles driven before defect manifestation ÷ 120,000) × Purchase price

Typically 10-25% of purchase price. Georgia’s broader 24-month / 24,000-mile Rights Period means use deductions can be material — a consumer at the mileage ceiling could face a deduction of $7,000-$10,000 on a $42K vehicle.

Title Ad Valorem Tax (TAVT)

Georgia replaced sales tax on vehicles with the Title Ad Valorem Tax in 2013 (O.C.G.A. § 48-5C-1). For Lemon Law purposes, the full TAVT paid at purchase must be refunded. Typical TAVT: 6.6-7% of vehicle value, often $2,500-$5,000 on a mainstream vehicle.

The TAVT line is a frequent point of dispute — manufacturers sometimes try to exclude it, but Georgia courts and the arbitration panel consistently order it reimbursed.

A concrete example

Assume you bought a $42,000 vehicle in May 2026:

• $4,500 cash down
• $2,800 TAVT (~6.7%) + $80 title + $20 tag = $2,900 collateral charges
• $33,700 financed at 6.9%, paid for 14 months ($590/month)
• Repair attempts at 6,000 / 14,000 / 21,000 miles
• Current odometer at resolution (July 2027): 23,500 miles (within 24,000 window)

Recovery breakdown:

Element	Amount
Down payment	$4,500
TAVT	$2,800
Title + tag	$100
Monthly payments × 14	$8,260
Remaining loan payoff	~$27,500
Subtotal	$43,160
Less: reasonable allowance for use (~16%)	–$6,700
Net refund to consumer	$36,460
Plus: FBPA damages (if applicable)	Variable
Plus: § 10-1-784(c) and/or FBPA § 10-1-399(d) attorney fees	$25,000-$60,000+

What the manufacturer cannot deduct

• Wear-and-tear beyond use allowance.
• Market depreciation unrelated to defect.
• “Diminished value” for cosmetic flaws.
• Negative equity rolled into the financing.

The mechanics

1. Settlement, arbitration panel decision, or court order documented.
2. Manufacturer wire transfers to lender for loan payoff.
3. Separate wire transfer to consumer for cash component.
4. Consumer signs vehicle title to manufacturer.
5. Dealer takes possession.
6. Loan closes.

Total time: 4-8 weeks for state arbitration; 4-6 weeks for court settlement.

What about attorney fees?

§ 10-1-784(c) provides discretionary Lemon Law attorney fees. FBPA § 10-1-399(d) provides mandatory attorney fees when the consumer prevails on FBPA. Magnuson-Moss provides additional fee-shifting in federal court.

The state arbitration panel does NOT award attorney fees — only refund/replacement.

When refund makes sense

• The defect is persistent.
• The vehicle has substantial diminished value.
• You want a clean break.

What if the manufacturer won’t comply with an arbitration decision

The Lemon Law arbitration decision is binding on the manufacturer once the consumer accepts. Non-compliance is enforced by the Consumer Protection Division and can include penalties.

Bottom line

A Georgia Lemon Law refund — combined with TAVT reimbursement, FBPA damages, and FBPA mandatory attorney fees in court action — produces strong consumer-favorable outcomes. State arbitration produces only the refund component (no fees, no damages); court action unlocks the full statutory exposure.

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