Replacement Vehicle Under Oregon Lemon Law
How Oregon Lemon Law replacement works — comparable new vehicle, and who elects between refund and replacement under § 646A.404(1).
By the text of the statute, the manufacturer elects the remedy: § 646A.404(1) provides that the manufacturer “shall” either replace the vehicle with a new motor vehicle or accept return and refund the price. In practice, the choice is often negotiated, and Oregon DOJ consumer guidance and BBB Auto Line proceedings frequently let the consumer indicate a preference — but the statutory election right rests with the manufacturer, so consumers should not assume an absolute right to demand one remedy over the other. A replacement vehicle is a “comparable new motor vehicle” — same year, make, model, trim, and options.
What “comparable” means
A comparable replacement vehicle must have:
- Same year, make, model, trim.
- Same major options (drivetrain, transmission, infotainment, safety package, color where reasonable).
- New (not used / demo).
- Equal or better warranty — typically a fresh full manufacturer warranty.
Reasonable-use offset still applies
The manufacturer is entitled to deduct for pre-defect use even on replacement.
Factors favoring replacement
- Brand loyalty — consumer wants the same model.
- Long lead-time vehicles — replacement may be faster than re-buying.
- EV-specific — battery defects often replaced with new battery + vehicle.
- Lease-protected pricing — replacement preserves the original lease terms.
When refund is better
- Brand-confidence damage — consumer wants to switch brands.
- Discontinued model — comparable replacement may not exist.
- Model-year transition — manufacturer changes affect “comparable” definition.
- Settlement leverage — cash settlement often more flexible.
Bottom line
Under § 646A.404(1) the manufacturer elects between refund and replacement, though the outcome is usually negotiated and consumer preference carries weight in practice. Get a free case review to position for the remedy you want.
Related
Attorney Fees Under Oregon Lemon Law
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Read → ArticleCash-and-Keep Settlements in Oregon Lemon Law Cases
How cash-and-keep settlements work in Oregon Lemon Law — diminished-value payments where consumer keeps the vehicle.
Read → ArticleRefund (Buyback) Under Oregon Lemon Law
How Oregon Lemon Law refunds work — full purchase price + registration + finance charges + incidental, minus reasonable use offset. NO Oregon sales tax.
Read → ArticleUTPA Damages — Oregon Punitive Damages Layer
How Oregon UTPA actual + punitive damages and mandatory § 646.638(3) fees stack with the Oregon Lemon Law — 1-year SOL trap.
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.