Replacement Vehicle Under Georgia Lemon Law

O.C.G.A. § 10-1-784(b) gives consumers the option of accepting a comparable replacement vehicle instead of a cash refund. Most consumers choose refund.

What “comparable” means

• Same model year or newer.
• Same make and model.
• Comparable trim.
• Comparable factory options.

What the manufacturer covers

• Replacement vehicle at no cost beyond what was already paid.
• New Title Ad Valorem Tax (TAVT) — the manufacturer pays TAVT on the replacement.
• New title, registration, license fees.
• Incidental damages refunded.

Why most buyers choose refund instead

Refund is preferred because of depreciation, “comparable” disputes, loss of flexibility, loan complications, trim/options availability.

When replacement makes sense

• You specifically love the model.
• The original purchase was deeply customized.
• Vehicle access continuity matters.
• The replacement TAVT savings are material vs. buying a different vehicle.

TAVT on the replacement

Georgia replaced sales tax with the Title Ad Valorem Tax (TAVT) in 2013. Under § 10-1-784(b), when the manufacturer provides a replacement, the manufacturer pays the TAVT on the new vehicle — the consumer doesn’t pay it twice. This is a meaningful benefit (~6.7% of vehicle value).

Bottom line

Replacement is a legitimate Georgia Lemon Law remedy but rarely the consumer’s first choice. The TAVT-on-replacement provision is a real benefit, but most consumers prefer the refund plus FBPA damages combination available through court action.

Related

Article

Attorney Fees in Georgia Lemon Law Cases

Georgia's Lemon Law has only discretionary attorney-fee shifting under § 10-1-784(c). FBPA § 10-1-399(d) provides mandatory fees. Magnuson-Moss adds federal-court fees.

Read → Article

Cash-and-Keep Settlements in Georgia Lemon Law Cases

How cash-and-keep settlements work in Georgia.

Read → Article

FBPA Damages in Georgia Lemon Law Cases

How Georgia's Fair Business Practices Act produces actual damages, exemplary (treble) damages, and mandatory attorney fees.

Read → Article

Refund Under Georgia Lemon Law

The most common Georgia Lemon Law remedy — full refund plus Title Ad Valorem Tax and collateral charges, minus a reasonable use deduction, with FBPA damages and attorney fees on top.

Read →