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gm buyback program requirements beverly hills

GM Buyback Program Requirements

GM customers are protected from defective vehicles with the California Lemon Law under certain conditions. A GM Lemon Law buyback ensures that drivers aren’t stuck with these defective cars. With this program, GM will take the defective vehicle back and offer compensation or a refund so the driver can choose a different model.

However, the vehicle must qualify under California’s Lemon Law to be eligible for a buyback. Therefore, new cars must have an original factory warranty, and the defect must occur within the first 18,000 miles or 18 months, whichever comes first. Ensuring that you have a valid Lemon Law claim is the trickiest part of the process.

The Lemon Pros have the experience to get a buyback settlement from GM. With our practice area focused solely on Lemon laws and defective vehicles, we’ve secured millions of dollars in compensation for our clients in California. Contact us today for your free case evaluation.

In this guide, we show you how the California Lemon Law applies to GM vehicles and the process to get a buyback. We also explain the requirements for GM Lemon Law cases and illustrate the need for qualified Lemon Law attorneys to handle your case.

What Is the GM Buyback Program?

What Is the GM Buyback Program?

Lemon Law covers any defect that substantially affects the vehicle’s use, value, or safety. Because of the vast nature of this definition, many problems are covered by the Lemon Law, including engine and transmission malfunctions. It also includes electrical issues, paint deformities and safety concerns that cannot be repaired.

A California Lemon Law buyback occurs when GM purchases the defective vehicle back from the owner. This is one possible outcome from a GM Lemon Law claim for a defective vehicle that cannot be repaired in a reasonable number of attempts.

This Lemon Law protection ensures that drivers can have a vehicle free of defects instead of being stuck with the one they are currently driving. It is valid on all new GM vehicles, including Chevrolet, GMC, Buick and Cadillac.

Over the past few years, GM has struggled with many widespread issues, including the recent class action lawsuit that affected 800,000 vehicles due to faulty transmissions. This class action involved the Cadillac Escalade, Chevy Corvette, Chevy Camaro, Chevy Silverado, the GMC Sierra, the GMC Yukon Denali, and so many more.

To get compensation through the GM and GMC Lemon Law, you don’t even need to own the vehicle. Whether you purchased (financed) or leased the vehicle, it still qualifies for reimbursement, as long as the California Lemon Law covers the defect.

GM Buyback Program Requirements: Are You Eligible?

For a lemon vehicle to be included in the buyback program, there are certain criteria it must meet. The first consideration is the vehicle’s condition. New cars only qualify if the defect appeared in the first 18 months or 18,000 miles, whichever comes first. The defect must be covered by the factory warranty.

Used cars may also be included if there’s a warranty and it was purchased from a dealership. There’s no protection when purchasing a used car from a private seller.

As far as the defects are concerned, drivers must permit a reasonable number of repair attempts before filing a claim. When serious safety concerns are present, only two repair attempts need to be made. However, other defects require a minimum of four repair attempts.

While multiple repair attempts are required in either situation, the dealership may not hold the vehicle for more than thirty days across all attempts.

When dealing with the GM Lemon Law, it’s important to consider how California law affects eligibility. A qualified lawyer can help you discern the differences from state to state. For example, some states have much stricter laws than California, such as Alabama, North Dakota and Illinois.

Documentation Required for the Program

You will be responsible for proving that you own or are the lessee of the car. Gather your original agreement with the purchase price and other fees listed (sales tax, registration, etc). You’ll also want the original warranty paperwork that shows the effective date.

Beyond that, you’ll need a record of the multiple repair attempts and the resolution from each visit. On the repair orders, you should have the date and the person handling the ticket. These repair orders should detail the vehicle defect and prove that there has been no resolution.

If you have further communication with anyone from the dealership or manufacturer, you need a record of that as well. Write down the date you spoke with them, their name, and what the outcome was.

How to Apply for the GM Lemon Law Buyback Program

how to apply for the gm buyback program

To start the GM buyback process, you want to follow these steps:

Step 1: Gather the Necessary Documentation

You have the burden of proving that you are driving a lemon vehicle. Therefore, you want to keep all of the documentation safe. We recommend scanning the documents and making copies of them. When collecting the documentation outlined above, make sure you organize everything chronologically, so it’s easier to understand the big picture.

Step 2: Contact GM Customer Service or Legal Department

The next step is to reach out to GM customer service directly. You can reach them online, with a phone call at 1-866-636-2273, or through email at info@gm.com.

In some cases, it may be best to reach out to the dedicated brand. For example, if you drive a Chevy, you want to contact Chevrolet support. You’ll want to reach out to the team handling lemon vehicles or the legal department. In your correspondence, detail the defects and the lack of resolution. Tell the team that you expect a buyback and be clear that you will take legal action.

General Motors isn’t going to offer you a buyback during this initial contact. In fact, you may not hear back from the company at all. If anything, the organization will most likely offer to have the GM vehicle sent to service for another repair attempt. However, if the vehicle qualifies for Lemon Law protection, there’s no reason to take another trip to the repair shop.

Whatever the response is, it’s essential that you record the communication. Make notes of who you spoke with and the outcome.

Step 3: Submit Your GM Buyback Claim

Based on state law (Song Beverly Consumer Warranty Act) and federal law (Magnuson-Moss Warranty Act), you will need to file a formal request for a GM buyback. This step is only to be done once you are sure that your vehicle meets the standards for a buyback claim.

For starters, your claim must include the basic vehicle information, including the year, make, model and VIN. Vehicle owners are also responsible for outlining the issue, whether it is excessive oil consumption, engine stalling, transmission issues, or other significant defects with their car or truck. You must show that you’ve taken the car to an authorized dealership for the attempted repairs and that the problem still exists.

Because of how critical this step is, it’s best to have a free consultation with an experienced Lemon Law attorney before proceeding any further. When you consult with a Lemon Law lawyer, there’s less chance of error, and you can expect a fair resolution to the claim. The Lemon Pros have the experience you are looking for and are ready to help with your buyback. Contact us today for a free consultation.

Step 4: Wait for an Evaluation and Response

GMC and Chevrolet owners may have to wait a short time for a response. It can take several months before a resolution is reached, and many times, the manufacturer will ask for arbitration to negotiate the settlement. If the case is complicated, arbitration and negotiations could last several more months than expected, so that’s something to be prepared for.

In the end, the manufacturer may simply agree to your buyback. If so, it’s best to use a Lemon Law buyback calculator to be sure you are receiving a fair offer. GM may also offer to repair the car, provide an extended warranty, or offer a replacement vehicle instead. These options may be better suited to your needs and should be discussed with your lawyer.

Step 5: Resolve Dispute With A California Lemon Law Attorney

There’s always the chance that you won’t be satisfied with the offer provided by GM. To protect consumers from getting a bad deal from the manufacturer, Lemon Law lawyers typically handle the negotiation process. They can fight for you to get a new vehicle or the payout that you deserve.

If necessary, an attorney will also go to court for you. In this case, the claim may take a little longer to resolve, but it’s important to fight for your rights. By backing down, you make it easier for the manufacturer to take advantage of other drivers.

What Should You Do if Your GM Buyback Claim Is Denied?

What Should You Do If Your GM Buyback Claim Is Denied?

If your car is still covered by the manufacturer’s warranty and has an unrepairable defect, but your Lemon Law claim is denied, you want to first understand the reason for this outcome. In many cases, it comes down to a lack of documentation – either you didn’t have the appropriate paperwork or more information was required. It’s also possible that you missed the time limit to file a claim or violated company policy in some way.

To start, you should double-check all of the paperwork that you submitted to ensure the vehicle meets the requirements and all of your proof is clearly outlined. If it does, you can contact GM customer service and your local dealer to request an appeal or reconsideration.

Many consumers forget that they can have a Lemon Law attorney on their side, and they should have had one before the case got to this point. Instead of figuring out how to start a GM Lemon Law claim, a lawyer could handle it from the beginning, and there wouldn’t be any mistakes made that could result in a denial. Because the attorney fees need to be paid by the manufacturer when you win your case, you may not have to pay anything out of pocket either.

When all else fails, consider filing a complaint with various consumer protection agencies to warn other customers of the potential dangers. We recommend filing with the state’s attorney general and the Better Business Bureau (BBB).

Are There Alternatives to the Buyback Program?

If you have a defective car that’s still covered under the warranty period and has endured multiple attempts to fix it with no resolution, you may have other legal options besides the buyback. For example, the manufacturer may be more inclined to offer a vehicle replacement instead, giving you a similar model without the persistent issues.

GM may also extend the warranty or offer more repair attempts, which is helpful if you like the car and would prefer to keep it. There may also be some financial compensation given to you, known as a cash and keep settlement. Each of these options comes with its considerations, and the details can vary depending on your situation and the specific defect affecting your vehicle.

How to Maximize Your Benefits from the GM Buyback Process

To ensure you get everything you are entitled to, follow these helpful tips:

  • Act quickly: Make sure you file your claim as soon as your car qualifies. You don’t want to exceed the legal time limits and miss out on compensation.
  • Negotiate wisely: Don’t give in to the first settlement offer if it’s not what you expected. A lawyer will help you fight for everything you are owed.
  • Leverage state Lemon laws: Become an expert in CA’s Lemon Law so you can maximize your entitlements. Know your rights for a better outcome.
  • Be detailed in your claim: By providing all of the evidence and documentation up front, you have a better chance of resolving the case quickly.
  • Hire an expert attorney: It may be tempting to go with a lawyer who practices general law, but you need an attorney who specializes in Lemon Law. Manufacturers and dealers know they can’t fool these lawyers and often give in to the settlements much faster.

Because every case is different, only an experienced Lemon Law lawyer will be able to tell you how to expedite the process and ensure a higher payout.

What Happens After GM Agrees to a Buyback?

What Happens After GM Agrees to a Buyback?

Typically, the repurchase price will include your original purchase price, plus taxes and registration fees. If you financed the vehicle, the automaker may also repay any outstanding loans related to the car. However, keep in mind that the manufacturer is allowed to deduct a certain percentage based on the miles you drove before the defect was reported, otherwise known as a mileage offset.

Once the details of the settlement are agreed upon and the buyback is calculated based on usage, it’s time to return the vehicle to an authorized dealership. You will follow the instructions given to you in the buyback agreement and receive your refund.

If there’s an outstanding loan or lease balance, those details are also outlined in the agreement. Once the transaction is complete, you are free to shop for another vehicle.

Need an Attorney to Handle Your GM Lemon Law Buyback Claim?

There’s no reason to file a GM buyback claim on your own. To ensure success, you want to gather all of your documentation, ensure that your vehicle qualifies, and reach out to an experienced lawyer for assistance. Remember to act quickly before you lose the right to file.

The Lemon Pros are ready to file a claim with GM on your behalf. As California’s experienced Lemon Law attorneys, we know how to get the compensation you are looking for. Contact us for a free case evaluation and see what you might be owed.

FAQ

What Types of Vehicle Issues Qualify For a GM Buyback?

To file a Lemon Law buyback claim, the defect must substantially impair the use, value or safety of the vehicle. Lemon laws allow for a wide range of issues, from engine or transmission failure to corrosion or electrical system malfunctions.

What Documents Do I Need to Submit for a GM Buyback Claim?

You are responsible for proving the defects, so documentation is key. We recommend having copies of the purchase or lease agreement, warranty paperwork, and any service records. You can submit these documents to your lawyer in chronological order to make the Lemon Law buyback process easier.

How Long Does It Take for GM to Process a Buyback?

The time for a Lemon Law buyback can be anywhere from a couple of months to a year, depending on your case. If GM agrees to your request, your case will take far less time than the one that needs to go to court.

Does the GM Buyback Cover Taxes, Registration and Fees?

As part of the California Lemon Law Buyback formula, you can expect to get the taxes, registration and fees reimbursed if you win the settlement. You are also entitled to any payments that have been made since the defect occurred, plus rental car fees and towing expenses, in some cases.

Is Buying a GMC Lemon Law Buyback Car Worth It?

Buying a GMC Lemon Law buyback car can be a risk. While these vehicles have been returned due to serious defects, many are repaired and sold at a discount. If you consider one, get a full vehicle history report, have it inspected by a trusted mechanic, and weigh the savings against potential ongoing issues.

Arash Khorsandi
Attorney
Arash Khorsandi
Lemon Law Attorney
6 months ago · 14 min read
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Here in California, strong consumer protection laws protect buyers of vehicles and other consumer goods. These laws are important – especially when buying or leasing a new vehicle, which is the largest purchase many Californians make regularly. The California Lemon Law gives you legal rights when you are stuck with a vehicle that breaks down again and again.

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