Understanding the Buyback Option
In the state of Massachusetts, dealers have the right to offer to buy back your car instead of making repairs. This allows you to receive a refund for your purchase. It’s important to note that you will need to provide the dealer with copies of your receipts and other relevant documents for each cost to be reimbursed.
Written Offer Requirement
To ensure transparency and clarity, the dealer is obligated to make the buyback offer in writing. This way, both parties have a clear understanding of the terms and conditions.
Take Your Time to Decide
Once you receive the dealer’s offer, you have a minimum of 5 business days to carefully consider whether to accept it. This gives you the opportunity to weigh your options and make an informed decision.
Refusal of Full Refund
Should the dealer offer you a full refund and you choose to decline it, it’s important to note that you will not be entitled to any further warranty repairs. Therefore, it’s crucial to consider all aspects before making a decision.
Calculating Your Entitlement
To determine the amount you are entitled to receive under the law, consider the following factors:
- The purchase price, including the amount for your trade-in
- Finance charges
- Registration fees
- The pro-rata cost of payments toward motor vehicle damage, collision, and comprehensive insurance
- The non-refundable portion of payments made for credit life and credit accident insurance on your vehicle loan
- The non-refundable portion of payments made for any extended warranties and service contracts
- Unreimbursed costs of towing up to 30 miles
- Up to $15 a day for alternate forms of transportation, starting on the third day the car has been out of service for repair
- Payments made toward the $100 repair deductible
- Any other costs directly related to the defect
Deductions to Consider
When calculating your entitlement, make sure to account for the following deductions:
- A use allowance of 15 cents per mile for every mile driven from the time of delivery to the date the refund is given
- Any over allowance on a trade-in vehicle, which is the difference between the trade-in amount and the actual cash value of the trade-in vehicle, if applicable. The over allowance will only be deducted from your refund if it is separately listed on your copy of the motor vehicle purchase contract, bill of sale, or other relevant documents.
Trade-In Vehicle Considerations
In cases where you traded in a vehicle and the dealer still has it, the dealer has the option to either return the vehicle to you or refund you the trade-in amount. It is essential to discuss and agree upon this matter with the dealer.
Clearing the Title
Both you and the dealer have the responsibility to clear any encumbrances on the title. To initiate this process, contact the Registry of Motor Vehicles and explain that you are returning your vehicle under the Lemon Law. Request a new title as soon as possible.
If your car is financed, you will need to obtain a lien release from the finance company. The Registry of Motor Vehicles will not issue a title in your name until you provide the lien release. It’s important to note that the dealer is only responsible for repurchasing the vehicle according to the terms described above. This means that if you have negative equity or haven’t made many loan payments, you may need to pay more than the amount of the award to cover the remainder of the loan.
Exclusions from the Refund
Please be aware that your refund will not include lawyer fees, lost wages, excise tax, sales tax, or any other costs not directly related to the defect. If you are eligible, you can apply for an abatement of excise tax at your city or town hall. Additionally, you can contact the Department of Revenue to request information regarding an abatement for the sales tax.
Remember, for more information on the Massachusetts Lemon Law and related services, visit Garrity Traina. They are a trusted resource in this field.
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