Understanding Carfax Lemon BuyBack and How to Protect

Buying a used car shouldn’t be a headache, but for thousands of buyers, it actually becomes a pain in the neck due to several reasons. After all, some vehicles re-enter the market after being repurchased by manufacturers under lemon laws.

And this often leaves new owners confused when terms like “lemon buyback” show up on the Carfax report. But what does it really indicate? Is the car unsafe or just misunderstood? To help you understand this, we’re here with all the details regarding the lemon buyback.

What Is a Carfax Lemon Buyback? An Overview

A lemon buyback happens when a manufacturer repurchases a vehicle from the consumer because it had some serious issues that couldn’t be fixed even after many attempts. In general, these issues are covered under state lemon laws for legal protection.

This protection is designed to protect new owners of the vehicle who fail again and again. And if the car is resold later, it may show up in Carfax history reports as a manufacturer buyback, lemon buyback, or reacquired from manufacturer status.

How the Lemon Law Buyback Process Works (Step-by-Step)

The lemon law buyback procedure contains a series of steps that are meant to protect those who have purchased the “lemon.” Some general steps include:

Step 1. Identifying a Lemon

In this process, it is determined if your vehicle actually qualifies as a “lemon.” It includes spotting a substantial defect that’s covered by the warranty that persistently impairs the vehicle’s value, use, safety, etc.

Step 2. Notifying the Manufacturer

Once you have found that your vehicle comes under “lemon,” the next thing to do is to inform the manufacturer. You need to write a notification and add details of the issues you’re continuously experiencing with the car.

Step 3. Allowing for Repairs

After notifying your vehicle’s manufacturer, you have to allow them a number of attempts to repair that vehicle. And if it’s still not fixed after reasonable attempts, it may be eligible for a lemon buyback.

Step 4. Requesting a Buyback

You can request the lemon law buyback if the manufacturer didn’t succeed in fixing the car even after many attempts. This involves the submission of a claim to the manufacturer, with proper details of the vehicle’s issues and the unsuccessful attempts for repairs.

Step 5. Receiving a Refund or Replacement

After the approval of your claim, the manufacturer is required to provide a vehicle in replacement or else refund the purchase cost of the vehicle. He is also responsible for costs like registration fees, sales tax, etc., or any other expenses you paid for the defect.

Step 6. Branding the Title

Once the buyback is completed, the manufacturer has to brand the title of the vehicle as a lemon law buyback. It really helps future buyers to know all about the vehicle’s history beforehand.