If the manufacturer owes you a buyback under the Song-Beverly Act, the number is not a guess. California Civil Code section 1793.2(d)(2)(B) defines the formula line by line. Here is how to run it, with a complete worked example.
A California lemon law buyback is a statutory refund. It is not a Kelley Blue Book valuation, not an auction price, and not whatever the manufacturer's warranty buyback department wants to offer. The formula starts with what you paid, adds the official charges and incidental losses you suffered, then subtracts only one thing: a mileage usage offset tied to the miles you drove before the defect first appeared.
Every element comes from California Civil Code section 1793.2(d)(2)(B) and 1793.2(d)(2)(C). The California Supreme Court's decision in Kirzhner v. Mercedes-Benz USA, LLC (2020) 9 Cal.5th 966 expanded what counts as a collateral charge and made clear that registration renewal fees, non-manufacturer-installed options, and similar costs belong in the number.
Assume a 2024 SUV purchased in Los Angeles with these numbers:
$45,000 cash price + $3,937 sales tax + $465 DMV = $49,402 subtotal.
$620 towing and rental + $380 roof rack = $1,000. Subtotal becomes $50,402. Keep every receipt. Missing receipts become a fight later, not a win.
The statutory offset under Civil Code 1793.2(d)(2)(C): purchase price times pre-complaint miles divided by 120,000. In this example: $45,000 x 8,000 / 120,000 = $3,000 mileage offset.
Critical detail: the denominator is always 120,000. The numerator is pre-complaint miles only, meaning miles you drove before the first repair attempt for the defect, not the miles currently on the odometer. If you drove 8,000 miles and then the defect appeared and you put another 14,000 miles on the car during two years of failed repair attempts, the offset still runs against 8,000 miles, not 22,000.
$50,402 subtotal minus $3,000 mileage offset = $47,402 statutory buyback.
If you financed the vehicle, the $47,402 does not land in your bank account. The manufacturer pays off the outstanding loan balance directly to the lender and remits the balance to you. If you owe $38,000 on the note, the manufacturer sends $38,000 to the lender and $9,402 to you. If you owe more than the buyback, you are still made whole because the payoff is part of the "actual price paid or payable" owed under the statute.
If the manufacturer's buyback offer is more than $2,000 below what this formula produces on your numbers, either an element is missing or the mileage offset is wrong. Before you sign a release, have an attorney run the calculation on your paperwork. The offer can almost always be improved, and attorney fees are paid separately by the manufacturer under Civil Code 1794(d).
For a lease, the actual price paid is the sum of lease payments made to date plus capitalized cost reduction (down payment), plus acquisition fee, plus any early termination charges. Collateral charges still include tax and DMV. The mileage offset runs on the gross capitalized cost rather than a cash price. The outstanding lease balance is paid directly to the lessor by the manufacturer, and the vehicle is surrendered as part of the buyback.
The buyback above is the statutory floor. If the manufacturer's refusal to repurchase was willful, Civil Code 1794(c) authorizes a civil penalty of up to two times actual damages. In our example, that puts the theoretical ceiling at roughly $142,000 ($47,402 buyback plus penalties up to 2x). Civil penalties are a negotiating asset more than a guarantee; juries award them when manufacturers ignore clear evidence, and strong penalty exposure is what drives most cases to settlement.
How do I know my pre-complaint mileage?
Look at your first repair order for the defect. The mileage printed on that invoice becomes the numerator in the offset.
What if I paid cash and financed separately?
Cash price plus finance charges actually paid on a separate loan are both recoverable. Bring loan statements.
Is the down payment included?
Yes. Down payment is part of the actual price paid, reimbursable in full subject only to the mileage offset against purchase price.
Free consultation. No fee unless we win. Direct attorney access from day one. Manufacturer pays your legal fees under Civil Code 1794(d).