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Oregon · Article Updated May 25, 2026

Leased Vehicles Under Oregon Lemon Law

How Oregon Lemon Law (§ 646A.400) applies to leased vehicles — lessees protected; refund includes lease payments + residual (no Oregon sales tax).

Leased vehicles are covered by Oregon’s Lemon Law (§ 646A.400) on the same terms as purchased vehicles. The lessee — not the lessor — is the protected “consumer.”

Lease coverage

  • Lessee is the protected consumer.
  • Lessor (bank / finance company) has no Lemon Law standing.
  • Manufacturer is the Lemon Law defendant.
  • Lease term + warranty period define the Rights Period.

What’s recoverable in a leased-vehicle refund

Oregon’s lease refund covers:

  • All lease payments made to date.
  • NO sales tax (Oregon is sales-tax-free).
  • Capitalized cost reduction / down payment.
  • Acquisition fee.
  • Disposition fee (waived).
  • Excess mileage / wear charges (waived).
  • Incidental damages.

Plus the lease is terminated with no further obligation.

Lease termination process

After award:

  1. Manufacturer pays the lessor the residual.
  2. Lessee surrenders the vehicle.
  3. Lessor releases the lessee from further obligation.
  4. Lessee receives the lease-payment refund.

UTPA application

UTPA applies to lease deceptive practices.

Bottom line

Leased vehicles get the same Lemon Law protection under § 646A.400. The refund covers lease payments + fees + incidental damages plus terminates the lease.

Related

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