Refund (Buyback) Under Louisiana Lemon Law

A Louisiana Lemon Law refund (also called “buyback”) under § 51:1944 restores the consumer to their pre-purchase financial position, minus a reasonable-use offset. This is distinct from Redhibition rescission — which is the unique civil-law alternative.

What’s included in a Louisiana refund

• Purchase price — the full price paid for the vehicle.
• Sales tax — Louisiana sales tax paid at purchase.
• Registration and title fees.
• Finance charges — interest paid on auto loan.
• Incidental damages — rental car costs, towing, diagnostic fees, lost wages for repair-shop visits.
• Trade-in credit — if a trade-in was part of the purchase.

The reasonable-use offset

Louisiana courts typically use:

Reasonable Use Offset = (Purchase Price × Miles Before First Report) ÷ 120,000

Lease vehicles

For leased vehicles, the refund covers lease payments + tax + down payment + acquisition + incidental damages, plus lease termination.

What’s NOT typically included

• GAP insurance (separate refund through GAP insurer).
• Extended warranty (separate refund through warranty seller).
• Personal modifications not factory-installed.

Process for receiving refund

After BBB award, court judgment, or settlement: consumer signs surrender, manufacturer issues check (lienholder paid first), consumer receives balance.

Lemon Law refund vs. Redhibition rescission

Two different mechanisms with different scope:

• Lemon Law refund — new vehicles only; requires repair attempts; manufacturer pays.
• Redhibition rescission — new AND used vehicles; no attempts required; seller pays.

For Louisiana cases involving used vehicles or hidden vice, Redhibition rescission is often the preferred remedy.

Bottom line

A Louisiana Lemon Law refund returns the consumer to their financial baseline. For used vehicles or hidden vice cases, also consider Redhibition rescission.

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