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The Consumer Law Group, P.C.

How to Calculate the Reasonable Allowance for Use Under Virginia’s Lemon Law

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When a consumer purchases a vehicle that later turns out to be a lemon, the consumer may be entitled to certain remedies under the law. One such remedy is to return the vehicle to the manufacturer, its agents, or authorized dealers and receive a refund of the full purchase price. The full purchase price, however, is reduced by an amount that equals a reasonable allowance for the consumer’s use of the vehicle up until the date when the consumer first provided notice of the vehicle’s nonconformity to the warranty. Similarly, the consumer may also accept a replacement of the motor vehicle of a comparable vehicle that is acceptable to the consumer. In these cases as well, the value of the replacement vehicle is reduced by the reasonable allowance for use.

Guidelines for Calculating Reasonable Allowance for Use

How is reasonable loss calculated when pursuing a claim under the lemon law? Here are some helpful guidelines:

  • The amount does not exceed one-half of the amount allowed per mile by the Internal Revenue Service for use of a personal vehicle for business purposes.
  • This amount is set through a regulation, revenue procedure, or revenue ruling.
  • The allowance also includes an amount to account for any loss to the fair market value of the vehicle that results from wear and tear.

It is also important to note that any reasonable loss of use that is attributed to the consumer’s attempts to conform the vehicle to its express warranty can be recovered by the consumer.

Pursuing a lemon law claim is not an easy process for those unfamiliar with the law. An experienced attorney can help guide you through the process of calculating what is owed to you and ensuring that your rights are protected. We encourage you to contact us today at 804-282-7900 for more information.

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