in Albany at 518-486-9786 if you have a problem
obtaining your repair orders.
18.
WHAT SHOULD BE INCLUDED IN
YOUR REFUND?
The refund should include the price of the car (cash
plus trade-in allowance), including all options, plus
title and registration fees and any other governmental
charges, less any lawful deductions. Other expenses
or charges, such as loss of use, insurance premiums
and finance charges, are not included under the law.
19.
WHAT ARE THE "LAWFUL
DEDUCTIONS?"
The manufacturer may deduct an amount for mileage
in excess of the first 12,000 miles. No deductions
may be made for the first 12,000 miles of use. The
law states that such deduction shall be calculated by
taking the mileage in excess of 12,000miles times the
purchase (or lease) price, divided by 100,000.
For example, if a defective car has 15,000 miles on its
odometer and cost $20,000, the deduction for use
21. IF THE CAR WAS LEASED, HOW IS
THE REFUND CALCULATED?
When the car is leased, the refund due from the
manufacturer is divided between you (the lessee) and
the leasing company (which owns the car and to
which you make lease payments) according to a
formula provided by the law. The lease price to be
refunded to you is the total of your down payment
(including any trade-in allowance) plus the total of
monthly lease payments, minus interest charges and
any other service fees.
For example, you leased a new car under a three-year
lease, with a $1,500 down payment, and pay a
monthly lease payment of $300. Of the $300 monthly
payment, $100 is allocated as interest charges. After
making twelve monthly payments, you are granted a
refund under the lemon law. The refund will be
$3,900 calculated as follows:
Deposit .................... $1,500
+ Monthly Payments.
(12x300)
$3,600
would be $600 (3,000 multiplied by $20,000 divided
by 100,000). In addition, a reasonable deduction may
be taken for any damage not due to normal wear.
- minus interest(12xl00)
Total Refund ..............
$
1,200
$3,900
20. IF THE PURCHASE WAS FINANCED,
HOW IS THE REFUND DIVIDED?
The refund by the manufacturer is the same whether
the car was financed or not. However, when the car
is financed, instead of the entire refund going to you,
the refund must be divided between you and the
lender (the bank or finance company). Generally, the
lender will calculate how much is still owed by you
and the refund will be applied first to that amount.
The balance of the refund will then go to you.
If
the monthly payment includes other service fees,
such as insurance or other costs, paid for your benefit,
such amounts will also be deducted from your refund.
The leasing company's portion of the refund is the
balance of the "lease price," as that term is defined by
the law.
22. IF THE CAR IS LEASED, DOES A
FINDING THAT THE CAR IS A
LEMON TERMINATE THE LEASE?
Yes. Once a finding has been made that a car is a
lemon, the lease is terminated. As a result, no early
termination penalties under the lease may be
collected.