Refund (Buyback) Under Nevada Lemon Law

A Nevada Lemon Law refund (also called “buyback”) under § 597.630 restores the consumer to their pre-purchase financial position, minus a reasonable-use offset.

What’s included in a Nevada refund

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

Nevada courts typically use:

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

Example: $40,000 vehicle, first defect reported at 6,000 miles.

• Offset = ($40,000 × 6,000) / 120,000 = $2,000
• Refund = $40,000 - $2,000 = $38,000 + 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).
• Excess mileage / wear charges (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 DTPA 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.

DTPA stacking

A Lemon Law refund can be combined with DTPA actual + treble damages where willful deceptive practices are pleaded.

Bottom line

A Nevada Lemon Law refund returns the consumer to their financial baseline, minus a reasonable-use offset capped at 120,000 miles. DTPA stacking with treble damages can substantially increase total recovery.

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