Cash-and-Keep Settlements in Maryland Lemon Law Cases

“Cash-and-keep” is a Maryland Lemon Law settlement structure where the consumer keeps the vehicle and receives a cash payment for diminished value. Not a statutory remedy under § 14-1502(e), 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 / CPA / 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.

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 - $12,000
• Strong case (4+ attempts, 30+ days OOS, written notice): $12,000 - $25,000+
• Strong CPA case (misrepresentation): higher

Attorney fees in cash-and-keep

CPA § 13-408(b) mandatory fees and discretionary § 14-1502 Lemon Law fees still apply.

Release language

Cash-and-keep releases typically cover:

• Future Lemon Law claims for the same defect.
• CPA 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.

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