Lemon Law can be a complex and difficult legal field to navigate. Each state has different rules, there’s extensive proof and paperwork, and fighting a manufacturer’s attorneys isn’t easy. You’ll need the help of experienced professionals like these Lemon Law attorneys at Conn Law to win the case, but what about taking a settlement?
In these types of court cases, there’s a settlement option known as “cash and keep” that a consumer can opt for. This little-known choice is something you may wish to discuss with your attorney depending on the circumstances of your case. Here’s everything you need to know.
Defining Cash and Keep
When a Lemon Law case is taken to court, there are two outcomes when the consumer wins. The manufacturer can replace the vehicle with one of equal value or they have to reimburse the driver the full cost of their purchase. Like all cases, however, a settlement takes place before a trial and offers the plaintiff monetary compensation.
In the cash and keep scenario, the manufacturer would pay the consumer an agreed upon amount of compensation for the problems the vehicle has experienced. This option is less common than a buyback, but can be used in specific cases. Make sure to speak with your attorney to determine if your scenario is ideal for a cash and keep settlement.
Is Cash and Keep a Good Option?
In most cases, the answer is no. The primary factor depends on the significant defect of the vehicle. If the issue is large enough to impact the operation of your vehicle, then you’ll want to seek a buyback as you can’t use your purchase.
If the defect affects the safety of your vehicle, then you’ll absolutely want to pursue the buyback. Finally, a substantial defect can affect the value of a car. This is where things get a little trickier. While you still might want to pursue the buyback, you might want a settlement if the car has sentimental value or it might difficult replace.
Smaller defects might be more suited to a cash and keep settlement as well. Each of these scenarios can be drastically different for every consumer. So, make sure to talk through all of the factors surrounding your case with your attorney before making any final decisions.
Points to Consider
You’ll get to keep your car in a cash and keep settlement, but the manufacturer must admit that it is indeed a lemon. You will continue to pay for the car through your lease or financing, but the manufacturer must help compensate you for your troubles. That can include repair costs, maintenance, and more depending on the agreement you reach with them.
This can be a better option in some cases simply because it’s more appealing to the manufacturer and their legal team. They might not believe the car is a lemon, but they would rather pay a settlement than head to court and end up paying more if you win the case.
The settlement or reimbursement is going to be less than the total price you paid for the car, but you do get to keep and continue driving it. You won’t be able to pursue a Lemon Law case down the road, though.