Purchasing a vehicle is a significant investment for most consumers and unfortunately, some vehicles are defective or poorly made, even if they come straight from the manufacturer. These defects may not be discovered until after the transaction has already gone through. To account for this fact, and to allow a consumer recourse if this happens to them, Virginia has enacted the Motor Vehicle Warranty Enforcement Act, also known as the lemon law. In some cases, the consumer may ultimately be entitled to a refund of the full purchase price of the vehicle.

Collateral Charges Under Virginia’s Lemon Law

If and when a person is entitled to a refund of the full purchase price of their vehicle under the lemon law, the purchase price includes any “collateral charges” which can include:

  1. Sales tax
  2. License fees
  3. Registration fees
  4. Title fees
  5. Finance charges
  6. Interest
  7. Transportation charges
  8. Dealer preparation charges
  9. Any charges for service contracts
  10. Undercoating
  11. Rust proofing
  12. Installed options not recoverable from a third party

In addition, if the vehicle involved was leased, the following are also included as collateral charges under the terms of the law:

  1. Capitalized cost reductions
  2. Credits and allowances for trade-in vehicles
  3. Fees to another to obtain the lease

It is important to note that these lists are not exhaustive. Virginia’s law clearly states that collateral charges are not limited to the items listed above.

Consumers who purchase a lemon are entitled to certain remedies under the law. It is important to seek assistance from an experienced legal professional in order to ensure that your legal rights are protected. We encourage you to contact us today at 804-282-7900 for more information.


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