Refund Under Wisconsin Lemon Law

A refund is the standard remedy in Wisconsin Lemon Law cases — but Wisconsin uniquely allows automatic doubling if the manufacturer misses the 30-day delivery window.

What the manufacturer must refund

Under Wis. Stat. § 218.0171(2)(b):

1. The full vehicle purchase price including dealer-installed options.
2. All collateral charges — Wisconsin sales tax (5% state + 0.5% county), title, registration, vehicle license fees.
3. Incidental damages — towing, rental, lost time.
4. The remaining loan balance paid directly to the lender.

The “reasonable allowance for use”

Wisconsin uses a mileage-based formula:

(Miles driven before defect manifestation ÷ 100,000) × Purchase price

Typically 5-15% of purchase price given the tight 1-year window.

Wisconsin sales tax

Wisconsin applies a 5% state sales tax plus 0.5% county tax. On a $42K vehicle, total sales tax is approximately $2,310 — fully reimbursable as a collateral charge.

A concrete example

Assume you bought a $42,000 vehicle in May 2026 in Milwaukee:

• $4,500 cash down
• $2,310 sales tax + $200 title/registration = $2,510 collateral charges
• $35,190 financed at 6.9%, paid for 8 months ($630/month)
• Repair attempts at 4,000 / 8,000 / 11,000 miles
• Current odometer at resolution (Jan 2027): 12,500 miles (within 1-year window)

Recovery breakdown (FULL 30-day compliance):

Element	Amount
Down payment	$4,500
Sales tax	$2,310
Title + registration	$200
Monthly payments × 8	$5,040
Remaining loan payoff	~$31,000
Subtotal	$43,050
Less: reasonable allowance for use (~9%)	–$3,780
Net refund	$39,270
Plus: mandatory § 218.0171(7) fees	$25K-$60K

Recovery breakdown (30-day non-compliance / Day 31):

Element	Amount
Net refund (pecuniary loss)	$39,270
AUTOMATIC DOUBLING under § 218.0171(7)	+$39,270
Total damages	$78,540
Plus: mandatory § 218.0171(7) fees	$30K-$80K
Plus: Magnuson-Moss § 2310(d)(2) fees (overlapping)	$0-$20K

The Day 31 difference: ~$39,270 in additional damages plus expanded fee recovery.

What the manufacturer cannot deduct

• Wear-and-tear beyond use allowance.
• Market depreciation unrelated to defect.
• “Diminished value” for cosmetic flaws.
• Negative equity rolled into the financing.

The mechanics

For in-window compliance:

1. Consumer’s written election received by manufacturer (Day 0).
2. Manufacturer calculates refund.
3. Manufacturer wires payment to lender + consumer within 30 days.
4. Consumer signs vehicle title to manufacturer.
5. Dealer takes possession.

For non-compliance:

1. Day 30 passes without full delivery.
2. Day 31 — automatic doubling attaches.
3. Consumer files Wisconsin Circuit Court action specifically pleading § 218.0171(7).
4. Court awards doubled pecuniary loss plus mandatory fees.

What about attorney fees?

§ 218.0171(7) provides mandatory attorney fees. Magnuson-Moss provides additional federal fees.

BBB Auto Line does NOT award attorney fees — only refund/replacement.

When refund makes sense

• The defect is persistent.
• The vehicle has substantial diminished value.
• You want a clean break.

Bottom line

A Wisconsin Lemon Law refund — particularly when the manufacturer misses the 30-day window — produces among the strongest consumer outcomes in the country. Automatic § 218.0171(7) doubling plus mandatory fees can effectively double the consumer’s recovery. The 30-day clock creates structural pressure that produces strong outcomes whether the manufacturer complies (consumer gets full refund) or misses (consumer gets doubled refund plus fees).

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