Refund (Buyback) Under the Hawaii Lemon Law
How a Hawaii lemon-law refund is calculated — full purchase price plus collateral charges, minus a 1%-per-1,000-mile reasonable-use offset, at the consumer's election.
A Hawaii refund — the “buyback” — returns the full purchase price plus collateral charges, minus a 1%-per-1,000-mile use offset, under HRS § 481I-3. Under § 481I-3(b), the manufacturer has the option to refund or provide a replacement — the statute directs that “the manufacturer shall provide the consumer with a replacement motor vehicle or accept return of the vehicle… and refund.”
What the refund includes
The refund covers the full purchase price, expressly including:
- Undercoating, dealer preparation, and transportation charges.
- Installed options.
- All collateral and incidental charges.
Less the reasonable-use offset (below). Additional offsets may apply for damage unrelated to the nonconformity.
The 1%-per-1,000-mile use offset
Hawaii’s offset formula is clear and predictable: 1% of the purchase price for every 1,000 miles of use. Critically, it is calculated only through the mileage at the triggering repair attempt or the 30-business-day threshold (whichever applies) — so miles you put on after the claim triggers aren’t charged against you.
A typical refund calculation
For a $40,000 vehicle with 9,000 miles at the triggering repair:
| Component | Amount |
|---|---|
| Purchase price (+ undercoating, prep, transport, options) | $40,000 + extras |
| Collateral / incidental charges | + as documented |
| Use offset (9,000 miles → 9% of $40,000) | − $3,600 |
| Net refund | ≈ $36,400 + collateral charges |
Who elects
Like manufacturer-option states such as Idaho and New Mexico, the manufacturer holds the statutory choice between refund and replacement in Hawaii (§ 481I-3(b)). You state your preference and press it through SCAP arbitration or court, but the manufacturer elects between the two outcomes.
Lease refunds
For leased vehicles, the refund covers lease payments made, the cap-cost reduction/down payment, and collateral charges — see leased vehicles.
Don’t forget UDAP treble and fees
A refund isn’t the whole recovery. In court, the HRS § 480-13 UDAP adds automatic treble (or the $1,000 floor) and mandatory fees on top, plus the $5,000 elder enhancement. See attorney fees.
Bottom line
The Hawaii buyback returns the full purchase price plus collateral charges minus a clear 1%-per-1,000-mile offset (capped at the triggering mileage). The manufacturer elects between this refund and a replacement under § 481I-3(b), so press your preference through SCAP and layer in the UDAP treble in court. Get a free case review to estimate your refund.
Related
Attorney Fees in Hawaii Lemon Law Cases
Hawaii's fee structure — discretionary lemon-law fees in SCAP arbitration, mandatory UDAP fees in court under HRS § 480-13, and Magnuson-Moss § 2310(d)(2).
Read → ArticleCash-and-Keep Settlements in Hawaii
How cash-and-keep settlements work in Hawaii lemon-law cases — a negotiated cash payment where you keep the vehicle, common when the defect is real but livable.
Read → ArticleReplacement Vehicle Under the Hawaii Lemon Law
When a Hawaii lemon-law claim results in a comparable replacement vehicle — at the manufacturer's election under HRS § 481I-3(b).
Read → ArticleHawaii UDAP Damages in Lemon Law Cases (HRS § 480-13)
How Hawaii's UDAP amplifies recoveries — automatic treble damages or a $1,000 floor, mandatory attorney fees, and a $5,000 elder enhancement.
Read →Think you've got a lemon?
Compare your situation to your state's requirements — and connect with a vetted lemon-law attorney for a free case review.