Refund (Buyback) Under Missouri Lemon Law

A Missouri Lemon Law refund (also called “buyback”) under § 407.567 restores the consumer to their pre-purchase financial position, minus a reasonable-use offset.

What’s included in a § 407.567 refund

• Purchase price — the full price paid for the vehicle.
• Sales tax — Missouri 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

§ 407.567 provides for a reasonable use deduction. Missouri courts typically use:

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

Example: $40,000 vehicle, first defect reported at 7,000 miles.

• Offset = ($40,000 × 7,000) / 120,000 = $2,333
• Refund = $40,000 - $2,333 = $37,667 + tax + fees + incidental

Lease vehicles

For leased vehicles, the refund covers:

• All lease payments made.
• Sales tax paid.
• Down payment / capitalized cost reduction.
• Acquisition fee.
• Disposition fee (waived).
• Incidental damages.

Plus the manufacturer must terminate the lease without further obligation.

What’s NOT typically included

• GAP insurance (separate refund through GAP insurer).
• Extended warranty (separate refund through warranty seller).
• Personal modifications / aftermarket parts not factory-installed.
• Consequential damages beyond statutory limits (without MMPA claim).

Process for receiving refund

After BBB award, court judgment, or settlement:

1. Consumer signs surrender documents transferring vehicle title.
2. Manufacturer issues check typically within 30 days.
3. Lienholder paid first (auto loan balance).
4. Consumer receives the balance.

MMPA stacking

A Lemon Law refund can be combined with MMPA actual + punitive damages where deceptive practices are pleaded with post-SB 591 specificity. MMPA damages do not offset the Lemon Law refund.

Bottom line

A Missouri Lemon Law refund returns the consumer to their financial baseline, minus a reasonable-use offset capped at 120,000 miles. MMPA stacking can substantially increase total recovery — provided post-SB 591 pleading is met.

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