Lemon Law Cash and Keep Settlement Amount

The California Lemon law cash and keep settlement is a common outcome involving defective vehicles that have had claims filed against them. In these settlements, the consumer receives a payout from the dealer or manufacturer but keeps the vehicle, in contrast to how the driver will typically return the vehicle. In general, the cash and keep settlement can be anywhere from $1,000 to $15,000 or more, depending on the severity of the defects and other critical factors.

The Lemon Pros can help you determine an appropriate amount for your cash settlement. As respected California Lemon law attorneys, we have years of experience working in this particular practice area. We’ve secured millions of dollars for our clients and are prepared to offer you a free case evaluation today. Schedule your appointment to get started.

In this guide, we cover the types of cars that qualify for cash and keep settlements, break down the average settlement amount, and explain how they work. There’s also a section helping you maximize your lemon law compensation.

What Is the Average Lemon Law Cash and Keep Settlement Amount?

When filing a standard Lemon law claim, you may receive a cash settlement to return the car or be offered a replacement vehicle. In many cases, the average Lemon law settlement in California could be anywhere from $5,000 to $100,000. However, when you decide to keep the car, the settlement is going to be far less.

On average, clients receive $1,000 to $15,000, sometimes more, depending on the situation. Aside from the factors listed below, there may also be differences based on the state you are in and the manufacturer you are dealing with. A qualified Lemon law attorney helps you determine if the payout is reasonable for the defect you need to live with.

Factors Affecting the Settlement Amount

For Lemon law settlements to be determined, several factors affect the payout. These include, but are not limited to:

• Vehicle condition: The better your car was taken care of, the more it's worth, so you can expect a better settlement offer.
• Repair history: The manufacturer will look at how many times it has been repaired to determine if there's any hope of fixing it. If so, you may only be offered a little more for the hassle of having to get more repairs.
• Vehicle depreciation value: Once a car is driven off the lot, it's no longer worth what it was when it was new. For this reason, the cost is determined by its new value.
• Mileage offset from the beginning of the defects (miles driven): The manufacturer takes into account the miles that were driven before the defect started. These miles aren't going to be included in the payout formula.
• Number and severity of the defects: If you are dealing with a minor defect, the payout will be far less than if it is something larger and more significant.

The vehicle manufacturer weighs how much money will be saved by paying you to keep the car versus taking it back and attempting to resell it with the defects. If it costs less for them to give you a settlement, that's the route they are going to take.

Who Qualifies for a Cash and Keep Settlement?

To get a cash and keep settlement, your car must first qualify for a Lemon law claim. Under California Lemon law, certain cars are eligible for a cash settlement, but not all qualify. In most cases, the following criteria are eligible.

• Defect is not severe: The problem with the vehicle may not be considered severe enough to justify a replacement or repurchase, but it still qualifies as a lemon. One example may be a defective rear power window that can’t be repaired, as this isn’t likely to cause a lot of inconvenience.
• Consumer prefers to keep the vehicle: If the driver enjoys their vehicle, aside from the defect, they may prefer to keep it with the defect. They may also want to avoid the process of turning the car back in.
• Defect has been partially fixed: If the dealer has been able to fix the problem to the point that it’s not as annoying or troublesome, consumers have the right to ask for compensation. This remedy occurs instead of a buyback.

Aside from these recommendations, the Lemon law claim must be valid. For example, a new car is only applicable if there’s a warranty covering the defect (manufacturer’s or extended coverage) and it’s within 18,000 miles or 18 months since taking ownership. California’s Lemon laws also state that a car qualifies when the defect substantially impairs its use, value or safety. The car manufacturer has the right to try and fix it, with two unsuccessful repair attempts needed for major safety concerns and four on all other complaints. However, the dealership doesn’t have the right to keep your vehicle for more than 30 days total.

How Lemon Law Cash and Keep Settlements Work in California

Getting a cash and keep settlement begins in the same way as most Lemon law claims. For this reason, it’s good to have a Lemon law lawyer with you for the process.

First, you are going to file a California Lemon law claim. Once the defective vehicle meets the criteria, you can file. Our expert lemon lawyer can navigate the claim and settlement process for you, relieving you of additional burdens. We make sure every ‘t’ is crossed and every ‘i’ is dotted so nothing falls through the cracks. Contact The Lemon Pros to get started.

Lemon law cases often result in a negotiation process, which is where it’s good to stand your ground and fight for what’s deserved. While you aren’t going to be offered the original purchase price for the lemon vehicle, you deserve compensation for your time and troubles. We know how to negotiate to earn top dollar.

Once a settlement amount is agreed upon, you will have paperwork to sign, and you will keep the vehicle, unlike with a Lemon law buyback. It’s worth noting that you don’t need to return the vehicle, so it’s yours to do as you wish.

How to Maximize Your Lemon Law Cash Settlement

To ensure you get everything you deserve for your lemon car, we have some helpful tips to keep in mind.

• Keep detailed records of everything: You want the original sales agreement, the manufacturer’s original warranty paperwork, and any relevant extended service contract documentation. You should also have all communications between you and the dealer regarding the repairs. If there’s been communication with the manufacturer, those documents should also be kept with the files.
• Get a third-party evaluation: If you want legal recourse, it’s often helpful to have a trusted mechanic evaluate the damages outside of the dealership you’ve been working with. You want them to acknowledge that the defect does significantly impair the vehicle's use, value or safety. Get a valuation of the faulty vehicle in writing so it can be used in court if needed.
• Carefully choose your lemon lawyer: You want legal representation when coming up against the biggest auto manufacturers in the world. They will have plenty of lawyers on their team, so you don’t want to fight them alone. A California Lemon law attorney fights your battles for you.
• Gather supporting evidence: The best lemon claim includes supporting evidence, such as expert opinions, repair invoices, and photos. If the manufacturer acknowledges the defect, try and get that in writing as well. Your Lemon law attorney can help you put together a solid case file.
• Understand your rights: By learning about CA Lemon laws, you ensure that you have the information needed to stand up for your rights. Because these laws can be difficult to understand, it’s always best to rely on an experienced and trusted Lemon law attorney.

Should You Accept a Cash Lemon Law Settlement?

Getting a payout on your defective car can be a great thing if you don’t want to get rid of it. On the other hand, by keeping the car, you are stuck with the same issue and can’t get any further compensation down the road, so you must weigh all of your options.

It can be a lot easier to get a cash and keep settlement because manufacturers don’t want the hassle of taking the car back. For this reason, you may have a shorter Lemon law claim period, giving you the cash sooner. The settlement could shave months off of a typical Lemon law case, making it far less time-consuming.

Alternatives to Cash and Keep in California Lemon Law

In Lemon law parlance, there are several terms used for the various settlement options. For example, you could get a vehicle replacement from the manufacturer. In this case, you would return the defective car and receive one of equal value that is defect-free.

There’s also the option of a refund or Lemon law buyback. In this case, you would return the vehicle and be given a refund based on usage and how long you had the vehicle before the defects began. You can use our Lemon law buyback calculator to estimate the amount you might get back. Just keep in mind that any time that you receive a cash settlement, whether you keep the car or not, you are liable for taxes. It would be essential to speak with a professional about paying your tax cost.

If you have a problematic vehicle that you can live with, the cash and keep settlement may be the best option for you. Keep in mind that you will be dealing with that same defect the entire time you own the car and there’s no guarantee it will ever be repaired. You may also be liable to disclose the information when selling the car, which could lower the resale value.

On the other hand, if you can’t live with the defect, or it could lead to serious injury, you are better off with a replacement or buyback. Of course, you need to give the manufacturer a reasonable number of repair attempts to try to resolve the situation. Once you’ve done that, it’s time to get what you deserve.

What to Do If You’re Offered a Low Settlement Amount

If you receive a Lemon law settlement proposal and the manufacturer offers you cash to keep the car, it’s best to review the offer with a lemon lawyer. Your options should be equally weighed, determining what it would mean to get a new vehicle instead. To determine if an offer is fair, the lawyer will determine how much the defect lowers the resale value and what kind of inconveniences it will cause you.

If the settlement is deemed insufficient, the lawyer begins negotiating. The manufacturers are more interested in a payout versus paying legal fees and court costs for a drawn-out claim. They also don’t want to take the car back, so you have a lot of negotiating power.

Your attorney is responsible for handling all of the negotiations. They also ensure you get everything you are owed, including any expenses incurred, attorney fees, and other incidental expenses.

Need a California Lemon Law Attorney to Get the Best Settlement Amount?

If your lemon vehicle has been through multiple repair attempts with no remedy in sight, it’s time to fight for what you deserve. After these unsuccessful attempts, you may feel discouraged, but a lawyer navigates your case for you, ensuring your rights are respected.

There’s always the option of taking a cash and keep settlement if the defects are minor enough. However, you need to consider the decreased value of the car and the inconvenience caused by the lemon issues. If you decide to go this route, the consumer agrees to keep the vehicle and disclose the issues to future buyers, so you need to consider the implications of this decision. Thankfully, you don’t have to navigate these decisions alone.

The Lemon Pros has a history of getting favorable outcomes for clients in such cases. As the best lemon law lawyer in California, we can review the settlement offer, along with the various factors affecting the case, and help you determine an appropriate payout. Contact us and make an informed decision about what to do with your lemon vehicle.

FAQs

Still have questions about Lemon Law cash-and-keep settlements? You’re not alone. Here are some quick answers to help you understand what to expect and how these settlements work.

What Are the Common Pitfalls of Lemon Law Cases?

Many car owners make the mistake of accepting a quick payment offer without understanding their full rights. Others forget to keep detailed repair records or miss key deadlines. It’s essential to take a moment to review the offer and seek legal guidance before agreeing to any settlement.

What Does a Cash and Keep Deal Mean?

A cash and keep deal means you receive financial compensation from the manufacturer while you retain ownership of your vehicle. Instead of returning the car, you keep it and get paid for the vehicle’s issues that couldn’t be fixed under warranty. It’s a way to get relief without giving up your car.

How Is the Cash and Keep Settlement Amount Calculated?

The cash and keep settlement amount is usually based on the benefits you lost because of the vehicle’s defects. This arrangement often considers repair costs, time spent in the shop, and the car’s current value. If you’re seeking a fair offer, it helps to have an attorney review the details before you agree to anything.

Does the Lemon Law Cash and Keep Settlement Cover Repairs?

In most cases, the manufacturer covers part of your losses, but not future repairs. If your vehicle continues to have problems, you’ll likely be responsible for fixing them. However, the settlement may help offset other costs, like time lost or out-of-pocket expenses from repeated repairs.

Is the Cash and Keep Amount Negotiable With the Manufacturer?

Yes, the cash and keep amount is often negotiable with the manufacturer. While some car owners choose a full buyback, others work to compensate for specific issues. The settlement can sometimes include costs from a loan, lease, rental car, or towing, helping you recover more than just the car’s value.

Do I Need a Lemon Lawyer to File a Lemon Law Claim?

While you can file a claim on your own, an experienced lemon law attorney can make a big difference, especially with warranty disputes. They ensure your rights are protected and guide you through negotiations. Most lawyers charge no upfront fees and the manufacturer may be responsible for the costs if you win.