Each person who is searching for lemon law information is in a different phase in the process; from making initial inquiries to wondering what to do as they move forward with their claim. If you are close to winning or have just won your lemon law claim, you still may have questions. One of the key points is what happens to your car loan after you win your lemon law case? That depends on a few factors, which can be explained to you by a lemon law attorney (as your case may have specific variables). In general, there are three loan-specific scenarios we’ll cover here, so you can get an idea of what to expect.
We’ll go into this more in a moment, but as you go through the process, there is one tip we encourage you to remember: keep paying your car loan. Falling behind on it while you wait for your case to resolve can complicate matters greatly.
We’ll then review what happens to your car loan and financing after you win your case, depending on what form of compensation you selected. There will be different outcomes depending on if you requested a refund or a replacement vehicle. A lemon law attorney will advise you on all the steps involved in the claim, and help you look ahead to how your car loan will be affected, when you win.
If you’re just starting out researching lemon law, and want to know how a lemon law attorney can get you the compensation you deserve, start with this post. It describes the procedure and gives you information on how to get a free consultation with Allen Stewart, P.C.
Keep Paying on Your Car Loan Until Your Case is Resolved
It might seem that paying a loan on a defective car doesn’t make sense. On the contrary, missing payments on your loan while your lemon law case is ongoing, can open up a host of complications. At the worst, getting the car repossessed due to nonpayment of your loan would defeat the purpose of your lemon law claim. It can also harm your credit score.
The lemon law claim doesn’t excuse you from your financial obligations until a resolution (like a buyback or replacement) is reached
You can get back your loan payments and more when you win your lemon law case, as we’ll see in a moment, when we examine the compensation you may receive upon winning your case.
Focusing on the Type of Compensation You Receive
There are three potential forms of compensation you can receive when winning your lemon law case; a buyback, a replacement vehicle, or in some cases, a cash settlement. Earlier on in the lemon law process, your attorney will review your complaint and your evidence. They will bring in additional evidence, if necessary, such as from independent experts, to help prove that your vehicle has a substantial defect, for which the manufacturer is obligated to compensate you. Each of the aforementioned lemon law outcomes is handled a bit differently in regard to your car loan, and your attorney will explain this to you before you select your preferred compensation.
A Closer Look at How Your Loan is Handled Depending on Lemon Law Compensation
Let’s break down the potential compensation types and how your car loan is handled for each:
| Settlement Type | Loan Handling | Typical Costs Covered/Refunds |
| Buyback | Full loan balance paid by the manufacturer. | Down payment, payments made, fees/taxes (minus usage offset fee).
|
| Replacement vehicle | Old loan gets resolved. Financing is arranged for the new vehicle. | Rental, repair, towing and other associated costs could be covered by the manufacturer. |
| Cash settlement | Pays off your loan; you receive any excess. | Various incidental expenses such as transportation may be covered. |
Which choice is best for me? Your attorney will help frame your situation so you can have a clearer picture as to the potential implications for each type of compensation. Typically, a buyback or replacement vehicle are the main forms of compensation received when you win your lemon law case. In some instances, a cash settlement could be negotiated (your attorney will advise if that is in your best interest). Then, you will decide which of the compensation options you want, and the associated loan handling result will wrap up your loan obligations.
What about leased vehicles? Leased vehicles can follow similar steps; check with your lemon law attorney to understand the laws in your state.
Please note that these loan handling provisions/refunds are provided by the manufacturer in addition to the manufacturer paying your legal fees when you win your case.
Why You Need a Lemon Law Attorney
Working with a lemon law attorney can make the difference between gaining maximum compensation and the manufacturer avoiding, diminishing or rejecting your claim. From the moment you present your evidence during a free consultation, and through each point as your case progresses, your attorney works to hold the manufacturer responsible for compensating you for your vehicle’s substantial defect. In addition to this, the attorney will go over, as we discussed, each type of compensation available to you via state and federal law. It’s their negotiating skills, and deep understanding of the law to protect your rights that make hiring a lemon law attorney the best course of action when dealing with a malfunctioning vehicle.
Image Source: Unsplash
Understanding how a lemon law claim works: The key point is determining if your vehicle qualifies as a lemon. It’s the vital beginning phase of making a lemon law claim. Your attorney can help you understand how it works and if/how they can proceed with your claim.
Trust Allen Stewart, P.C. for Expert Lemon Law Representation
Allen Stewart, P.C. has won many lemon law cases across the country, and our attorneys are well-known lawyers in New York, California, and Texas. We fight for our clients’ rights against manufacturers who try to sidestep their obligations. They may try to blame you for abusing or neglecting your vehicle. Manufacturers may also introduce delays or deceptive tactics to block or reject your claim. Our attorneys, through years of experience, anticipate and overcome these challenges. We hold the manufacturers accountable so you receive just compensation.
If you’re wondering if you need a lemon law lawyer, please consider this: the manufacturer will bring their legal team to bear to protect their interests. You need a winning team on your side to ensure your rights are protected, and that you receive the buyback, replacement vehicle, or cash settlement you deserve. Allen Stewart, P.C.’s attorneys give you the best opportunity to do that.
We encourage you to schedule your free consultation (866-440-2460) now. Even if you think your car can’t qualify as a lemon, contact us. There are some instances where combinations of defects and other variables can qualify your vehicle as a lemon. Through our experience, we can consider your evidence and tell you if your claim is valid under state lemon law. Have our attorneys review your claim? You will pay nothing to us, as when you win your case, the manufacturer is required to pay your legal fees. Contact Allen Stewart, P.C. today (866-440-2460), or contact us online.