Refund (Buyback) Under the South Dakota Lemon Law
How a South Dakota lemon-law refund is calculated — full contract price plus collateral charges (excise tax, registration), minus a use offset on a 100,000-mile basis, at the consumer's election.
A South Dakota refund — the “buyback” — returns the full contract price plus collateral charges, minus a use offset on a 100,000-mile basis, under § 32-6D-3. The consumer elects the refund over a replacement.
What the refund includes
- Full contract price — including undercoating, dealer-prep, transportation, and installed options.
- Nonrefundable portions of extended warranties and service contracts.
- Collateral charges — excise tax (South Dakota’s 4% motor-vehicle excise tax), license, registration, and similar government charges.
- Finance charges incurred after the first report of the nonconformity.
- Incidental damages — including the reasonable cost of alternative transportation.
The use offset — a 100,000-mile basis
South Dakota’s reasonable allowance for use is the full purchase price multiplied by a fraction:
- Numerator — miles driven before the first report of the nonconformity.
- Denominator — 100,000.
The 100,000-mile denominator and before-first-report numerator keep the deduction small — and because the first report must occur within 12,000 miles, the offset is typically modest.
A typical refund calculation
For a $40,000 vehicle, first reported at 9,000 miles:
| Component | Amount |
|---|---|
| Contract price | $40,000 |
| Excise tax + license + registration | + as documented |
| Use offset (9,000 ÷ 100,000 × $40,000) | − $3,600 |
| Net refund | ≈ $36,400 plus collateral charges |
The consumer elects
The consumer chooses refund or replacement (§ 32-6D-3) — South Dakota’s consumer-favorable election.
Don’t forget the fees
A refund isn’t always the whole recovery: the lemon law provides attorney fees (§ 32-6D-8), Magnuson-Moss adds § 2310(d)(2) fees, and the DTPA adds actual damages for misrepresentation. See attorney fees.
Bottom line
The South Dakota buyback returns the full contract price plus collateral charges (including the excise tax) minus a small 100,000-mile use offset — at the consumer’s election. Layer in the lemon law’s own fees and Magnuson-Moss. Get a free case review to estimate your refund.
Related
Attorney Fees in South Dakota Lemon Law Cases
South Dakota's fee structure — the lemon law's own fees (§ 32-6D-8) and Magnuson-Moss § 2310(d)(2), with no UDAP treble and no general DTPA fee provision.
Read → ArticleCash-and-Keep Settlements in South Dakota
How cash-and-keep settlements work in South Dakota lemon-law cases — a negotiated cash payment where you keep the vehicle, common when the defect is real but livable.
Read → ArticleSouth Dakota DTPA Damages in Lemon Law Cases
How South Dakota's Deceptive Trade Practices statute supplements a lemon-law claim — actual damages for misrepresentation (§ 37-24-31), but no treble and no general fee provision.
Read → ArticleReplacement Vehicle Under the South Dakota Lemon Law
When a South Dakota lemon-law claim results in a comparable replacement vehicle — at the consumer's election under § 32-6D-3.
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.