Refund (Buyback) Under the Rhode Island Lemon Law
How a Rhode Island lemon-law refund is calculated — full contract price plus collateral charges and towing/rental, minus a use offset on a 100,000-mile basis, at the consumer's election.
A Rhode Island refund — the “buyback” — returns the full contract price plus collateral charges and towing/rental costs, minus a use offset on a 100,000-mile basis, under § 31-5.2-3. The consumer elects the refund over a replacement.
What the refund includes
- Full contract price (or, for a lease, the lease price).
- Collateral charges — sales tax, registration fee, and finance charges (§ 31-5.2-3(1)(c)).
- Towing and rental costs.
The use offset — a 100,000-mile basis
Rhode Island’s reasonable allowance for use (§ 31-5.2-3(1)(e)) multiplies the total price by a fraction:
- Numerator — miles traveled before the first nonconformity report, plus miles during periods the vehicle was not out of service for repair.
- Denominator — 100,000.
The 100,000-mile denominator keeps the deduction small — and because miles accrued while out of service don’t count, a Rhode Island refund stays close to the full price.
A typical refund calculation
For a $34,000 vehicle, first nonconformity reported at 5,000 miles:
| Component | Amount |
|---|---|
| Contract price | $34,000 |
| Sales tax + registration + finance charges + towing/rental | + as documented |
| Use offset (≈5,000 ÷ 100,000 × $34,000) | − ≈ $1,700 |
| Net refund | ≈ $32,300 plus collateral charges |
The earlier you first reported the defect, the smaller the offset.
The consumer elects — and the manufacturer’s 30 days
The consumer chooses refund or replacement; the manufacturer then has 30 calendar days to deliver a replacement or pay the refund.
Lease refunds
For leased vehicles, the refund covers the lease price plus collateral charges, minus the same 100,000-mile use offset.
Don’t forget the extras
A refund isn’t always the whole recovery: $25/day continuing damages may apply if loss of use continues on appeal, a frivolous manufacturer appeal doubles the award, and attorney fees are mandatory (§ 31-5.2-11). See attorney fees.
Bottom line
The Rhode Island buyback returns the full contract price plus collateral charges and towing/rental minus a small 100,000-mile use offset — at the consumer’s election. Layer in $25/day, the doubled-award appeal deterrent, and mandatory fees. Get a free case review to estimate your refund.
Related
Attorney Fees in Rhode Island Lemon Law Cases
Rhode Island's fee structure — mandatory under the Lemon Law (§ 31-5.2-11), discretionary under the DTPA, plus Magnuson-Moss § 2310(d)(2).
Read → ArticleCash-and-Keep Settlements in Rhode Island
How cash-and-keep settlements work in Rhode Island lemon-law cases — a negotiated cash payment where you keep the vehicle, common when the defect is real but livable.
Read → ArticleRhode Island DTPA Damages in Lemon Law Cases
How the Rhode Island Deceptive Trade Practices Act amplifies recoveries — actual damages or $500, discretionary treble, and discretionary fees — and the regulated-activities exemption that limits it.
Read → ArticleReplacement Vehicle Under the Rhode Island Lemon Law
When a Rhode Island lemon-law claim results in a comparable replacement vehicle — at the consumer's election, with a 30-day delivery requirement and a fresh term of protection.
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.