Refund (Buyback) Under the Idaho Lemon Law

An Idaho refund — the “buyback” — returns the purchase price plus collateral charges, capped at 105% of MSRP, minus a ÷120,000-mile reasonable-use offset, under Idaho Code § 48-903. It is one of the two statutory remedies; the replacement is the other, and the consumer can veto a replacement to obtain the refund.

What the refund includes

• Purchase price — including the value of any trade-in.
• Sales/excise tax, license and registration fees.
• Towing and rental expenses from warranty downtime.

The 105%-of-MSRP cap

Distinctively, the refundable amount may not exceed 105% of the manufacturer’s suggested retail price of the vehicle (including manufacturer-installed options, and dealer-arranged options or modifications made within 30 days of delivery). Most states have no such explicit ceiling — Idaho’s 105% cap is a defining feature.

The ÷120,000-mile use offset

The reasonable-use deduction is:

miles attributable to the consumer up to the date of the arbitration hearing × purchase price ÷ 120,000.

The 120,000-mile denominator is consumer-favorable — a smaller per-mile deduction than the 100,000-mile denominator some states use. Because the offset is measured up to the arbitration hearing, moving promptly limits the deduction.

A typical refund calculation

For a $40,000 vehicle (MSRP $42,000) with 9,000 consumer miles at the hearing:

Component	Amount
Purchase price (incl. trade-in)	$40,000
Tax + license + registration + towing/rental	+ as documented
Use offset (9,000 × $40,000 ÷ 120,000)	− $3,000
Cap check	refundable amount ≤ 105% of $42,000 = $44,100
Net refund	≈ $37,000 + collateral charges (within cap)

Consumer veto over replacement

Section 48-903 lets the manufacturer elect refund or replacement first — but the consumer can reject a replacement and require the refund. So if you want cash rather than another vehicle, you can insist on the buyback.

Lease refunds

For leased vehicles, § 48-904 provides a refund-only remedy (no replacement) — returning lease payments, the cap-cost reduction/down payment, and collateral charges.

Don’t forget the fee recovery

A refund is not the whole recovery — a prevailing consumer also receives mandatory attorney fees under § 48-909 (and § 48-608 if the ICPA is pleaded). See attorney fees.

Bottom line

The Idaho buyback returns purchase price plus collateral charges, capped at 105% of MSRP, minus a consumer-favorable ÷120,000-mile offset — and the consumer can veto a replacement to get cash. Move promptly to limit the use offset. Get a free case review to estimate your refund.

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