The Refund (Repurchase) Remedy in North Dakota
How a North Dakota lemon-law refund is calculated — full purchase price plus collateral charges, minus a use offset capped at 10 cents per mile or 10% of the purchase price, whichever is less.
The refund (repurchase) is the remedy most North Dakota consumers choose — and the state’s use-offset cap makes it especially valuable. Under § 51-07-18, the manufacturer must accept return of the vehicle and refund the purchase price, less a strictly limited use allowance.
What’s included
- Full purchase price of the vehicle.
- All collateral charges — sales/excise tax, title, registration, and similar government and dealer charges paid at purchase.
- (Pair with Consumer Fraud or Magnuson-Moss for incidental losses where available.)
The use offset — capped at 10% of price
Here’s what sets North Dakota apart. The use allowance is:
not exceeding ten cents per mile driven or ten percent of the purchase price, whichever is less (§ 51-07-18).
Two consumer-favorable rules combine:
- Only miles before first report count. Mileage you put on after you reported the defect doesn’t increase the offset.
- A hard 10%-of-price ceiling. Even at 10¢/mile, the deduction can never exceed 10% of the purchase price.
Worked example
A $45,000 truck, driven 55,000 miles before the defect was first reported:
- 10¢/mile × 55,000 = $5,500.
- 10% of $45,000 = $4,500.
- Whichever is less → the offset is $4,500.
Refund ≈ $45,000 + collateral charges − $4,500. Most states would use a 100,000-mile formula or no cap at all; North Dakota caps it at 10% — a major advantage for high-mileage owners (think the Bakken oil patch).
Leased vehicles
For leases, § 51-07-18.1 governs the refund of lease payments and amounts paid — coordinate the lessor and lessee shares.
Why the cap matters in North Dakota
North Dakota drivers cover vast rural distances and oil-patch fleet miles. A mileage-based offset with no ceiling would gut the refund. The 10%-of-price cap protects exactly these high-mileage owners — provided they report the defect early (the offset counts pre-report miles).
Bottom line
A North Dakota refund returns your full price plus collateral charges, minus a use offset that can never exceed 10% of the purchase price — the most owner-friendly cap in the country. Get a free case review.
Related
Attorney Fees in a North Dakota Lemon Law Claim
How attorney fees work in North Dakota lemon-law claims — Magnuson-Moss fee-shifting and mandatory Consumer Fraud fees on a knowing violation mean most consumers pay nothing out of pocket.
Read → ArticleCash-and-Keep Settlements in North Dakota
How a cash-and-keep settlement works in a North Dakota lemon-law claim — you keep the vehicle for a cash payment, when it makes sense, and how it compares to a buyback.
Read → ArticleConsumer Fraud Damages in North Dakota (§ 51-15-09)
How North Dakota's Unlawful Sales or Advertising Practices chapter adds damages to a lemon-law claim — discretionary treble and mandatory attorney fees on a knowing violation.
Read → ArticleThe Replacement Remedy in North Dakota
When a comparable replacement vehicle makes sense under North Dakota's lemon law — the consumer's election, how comparability works, and the trade-offs versus a refund.
Read →Think you've got a lemon?
Compare your situation to your state's requirements — and connect with a vetted lemon-law attorney for a free case review.