Refund (Repurchase) Under Utah Lemon Law

Under Utah Code § 13-20-5, when the manufacturer fails to repair within a reasonable number of attempts, it must (at its option) refund or replace the vehicle. Utah’s refund formula has a distinctive consumer-favorable feature: the mileage offset excludes miles accrued while the vehicle was being repaired.

What the refund includes

§ 13-20-5 refund covers:

• Full contract purchase price.
• Collateral charges — sales tax, registration, title fees, document preparation.
• Finance charges paid through date of refund.
• Insurance premiums attributable to ownership.
• Incidental damages — rental car, towing, diagnostic charges outside warranty.

The distinctive mileage-during-repair exclusion

Utah’s § 13-20-5 “reasonable allowance for use” formula explicitly excludes:

• Mileage at time of delivery (standard exclusion in most states).
• Mileage during the time the vehicle was being repaired (Utah-distinctive exclusion).

For consumers with multi-week dealer visits, this can substantially reduce the offset:

Example: $40,000 vehicle with 15,000 miles before first repair attempt; 2,000 miles accrued during 4 separate repair visits totaling 30 business days OOS.

• Offset miles: 15,000 − 2,000 = 13,000 miles (vs. 15,000 in most peer states).
• Net offset savings: ~$650-$1,300 depending on formula.

The exclusion is even more meaningful for consumers with extended repair tenures or multiple long parts-wait periods.

What’s excluded from refund

• Damage caused by consumer — accidents, abuse, unauthorized modifications.
• Normal wear and tear.
• Aftermarket modifications.

Manufacturer-option remedy

§ 13-20-5 gives the manufacturer the choice between refund and replacement — joins Oklahoma § 901(C), South Carolina § 56-28-40, Arkansas § 4-90-407, and Mississippi § 63-17-159. Most manufacturers default to refund.

Loan and lease considerations

• Financed: Manufacturer pays the lender’s payoff balance + consumer’s equity refund.
• Leased: Manufacturer pays lessor the residual buyout + consumer’s lease-equity refund.

Vehicle return and title transfer

• Consumer surrenders vehicle to manufacturer-designated dealer.
• Title transfers to manufacturer.
• § 13-20-7 buyback disclosure required on future resale.

Timing

• Refund payment typically issues within 30-45 days of settlement.
• Title transfer at vehicle surrender.

Bottom line

Utah refunds follow the standard formula but with distinctive mileage-during-repair exclusion that meaningfully reduces the offset. Manufacturer-option structure typically defaults to refund. The UCSPA $2,000 statutory floor + Magnuson-Moss mandatory-character federal fees (the reliable anchor) are paid separately from refund.

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