6. THE USAGE OFFSET THE MANUFACTURER RECEIVES

RATIONALE- Why should a manufacturer receive any "offset" for selling a "lemon"? After all the buyer had to go through the frustration and expense of dealing with the "lemon" they were stuck with. There is a legal principle, simply put, that does not permit somebody a gain a "windfall" beyond their actual claim. And it is recognized that buyers enjoy their new car for some time period before it turns into a "lemon". While all manufacturers are entitled to a "usage offset" the "Lemon Law" provides a precise formula for calculating the "usage offset" for vehicles.

FORMULA USED- The "Lemon Law" first deems 120,000 miles as the useful life of a vehicle. 120,000 miles is divided into the mileage reading at the time the vehicle was FIRST taken to the dealer with the problem(s) that caused it to become a "lemon". That quotient is then multiplied by the cash price of vehicle (including manufacturer installed options and transportation costs). The final number is the "usage offset".

EXAMPLE: A buyer pays a $30,000 cash price for a car. The buyer drives the car for 12,000 miles before it has to be taken to the dealer for problems that ultimately turn it in to a "lemon".