Cash-and-Keep Settlements in Indiana Lemon Law Cases

“Cash-and-keep” is an Indiana Lemon Law settlement structure where the consumer keeps the vehicle and receives a cash payment for diminished value. Not a statutory remedy under § 24-5-13-13/14, but a common settlement outcome.

How cash-and-keep works

• Consumer keeps the vehicle.
• Manufacturer pays cash representing the vehicle’s diminished value.
• Manufacturer may extend warranty to cover continued ownership.
• Release signed releasing further Lemon Law / IDCSA / Magnuson-Moss claims.

When cash-and-keep makes sense

• Defect resolved but consumer remains concerned about reliability.
• Vehicle still drivable with manageable issues.
• Consumer wants to avoid buying / leasing a replacement vehicle.
• Manufacturer wants to avoid the publicity of a buyback.
• IDCSA leverage — cash payment may include implied treble component.

Typical cash-and-keep amounts

Varies by case strength:

• Weak case (1-2 attempts, no OOS): $1,500 - $5,000
• Moderate case (2-3 attempts, some OOS): $5,000 - $10,000
• Strong case (4+ attempts, 30+ business days OOS, both notices sent): $10,000 - $25,000+
• Strong IDCSA case (cure refused): significantly higher with treble component

Attorney fees in cash-and-keep

§ 24-5-13-22 + IDCSA § 24-5-0.5-4(d) mandatory fees still apply. Most cash-and-keep settlements include:

• Consumer’s cash payment.
• Separate attorney fees paid by manufacturer.
• No deduction of fees from consumer’s recovery.

Release language

Cash-and-keep releases typically cover:

• Future Lemon Law claims for the same defect.
• IDCSA claims arising from the purchase.
• Magnuson-Moss claims related to the defect.

Watch for:

• Releases of future personal-injury claims.
• Non-disparagement clauses that bar consumer reviews.
• Confidentiality that bars complaints to BBB / regulators.

Bottom line

Cash-and-keep is a flexible settlement structure. The amount depends on case strength — strong cases with both notices + cure refusal command higher payments due to IDCSA treble exposure. Review release language carefully.

Related

Article

Attorney Fees Under Indiana Lemon Law

Indiana's triple mandatory fee-recovery basis — § 24-5-13-22 Lemon Law + § 24-5-0.5-4(d) IDCSA + Magnuson-Moss § 2310(d)(2).

Read → Article

IDCSA Damages — Indiana Treble Damages Layer

How IDCSA actual + treble damages or $500 minimum + mandatory § 24-5-0.5-4(d) fees stack with the Indiana Lemon Law — requires cure notice.

Read → Article

Refund (Buyback) Under Indiana Lemon Law

How Indiana Lemon Law refunds work under § 24-5-13-14 — full purchase price + tax + fees + incidental, minus reasonable use offset.

Read → Article

Replacement Vehicle Under Indiana Lemon Law

How Indiana Lemon Law replacement works under § 24-5-13-13 — comparable new vehicle, consumer's choice between refund and replacement.

Read →