Average GM Lemon Law Settlement in 2023 - The Lemon Law Experts (2024)

Legally reviewed by: Jessica Anvar Stotz, JD, MBA

While there is no specific average for General Motors (GM) lemon law settlements due to various factors, we can provide estimates based on typical lemon law settlements in California. These estimates are meant to give you an idea of what your GM lemon law settlement could be worth:

California’s lemon law protects consumers from defective automobiles, including those manufactured by GM. If you find that your GM vehicle has major problems, doesn’t function properly, or has long-term defects, you may have the option to seek recourse under California’s lemon law. Auto manufacturers, including GM, are obligated to provide refunds or replacements for defective vehicles.

CategoryAverage GM California Lemon Law Settlement Amounts
LowApproximately: $5,300
ModerateApproximately: $48,606
HighApproximately: $199,000
Average GM Lemon Law Settlement in 2023 - The Lemon Law Experts (1)

    GMC Lemon Law Settlement Overview hide

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    Factors that Affect GM Lemon Law Settlements the Most

    Recent GM Settlements Recovered by The Lemon Law Experts

    Are There Different Types of Lemon Law Settlements?

    How Can You Maximize What You Recover?

    Get in contact with the Lemon Law Experts now!

    Factors that Affect GM Lemon Law Settlements the Most

    The following factors are known to have a substantial impact on the resolution of GM lemon law cases:

    • Nature and Severity of Defects: The most critical factor is the nature and severity of the defects or issues with the GM vehicle. More severe or recurring defects often lead to higher settlements.
    • Frequency of Repairs: The number of repair attempts made by the vehicle owner is crucial. If the owner has made multiple unsuccessful attempts to fix the defects, it can strengthen their case.
    • Vehicle Make and Model: The specific GM make and model play a role in settlement amounts. Some models may have more common issues, leading to more favorable settlements.
    • Vehicle Age and Mileage: The age of the vehicle and its mileage at the time the lemon law complaints appear can impact the settlement. Generally, newer vehicles with lower mileage that have lemon law issues receive larger settlements.
    • Purchase Price: The initial purchase price of the GM vehicle is considered in the settlement. Higher-priced vehicles may receive more substantial settlements.
    • Manufacturer’s Warranty: Whether the vehicle is still under the manufacturer’s warranty is important. New vehicles often come with warranties, and the presence of an active warranty can affect the settlement.
    • Legal Representation: Having an experienced lemon law attorney can significantly influence the settlement outcome. Attorneys can effectively negotiate on behalf of the vehicle owner, potentially leading to better settlements.

    Each GM lemon law case is unique, and these factors interact in complex ways. While there are average settlement estimates, the specific details of the case will ultimately determine the final settlement amount, which is why we recommend consulting with a qualified lemon law attorney.

    Recent GM Settlements Recovered by The Lemon Law Experts

    The Lemon Law Experts have a track record of successfully recovering settlements for various automotive issues. Here are some recent settlements and updates in lemon law cases:

    1. 2020 Chevrolet Silverado: In the case of a 2020 Chevrolet Silverado 1500, our client encountered persistent issues primarily tied to the vehicle’s intricate electrical system. These recurring problems significantly affected the vehicle’s performance and overall reliability. The skilled legal team at Lemon Law Experts responded promptly, conducting a comprehensive analysis of the situation and skillfully negotiating on the consumer’s behalf, ultimately securing a favorable refund and civil penalties for this consumer in addition to their attorneys fees and costs.
    2. 2020 GMC Sierra: Our client faced various different vehicle problems linked to their GMC Sierra’s transmission system. These ongoing problems had a notable impact on the vehicle’s performance and overall reliability. The proficient legal team at Lemon Law Experts acted promptly, conducting an extensive analysis of the situation and ultimately securing an optimal settlement for the client.
    3. 2022 Cadillac Escalade: In the case of a 2022 Cadillac Escalade ESV, this client faced a sudden and concerning issue when the vehicle stalled in the middle of an intersection, subsequently refusing to shift into neutral. The vehicle needed to be towed following this incident. During the same visit, it was discovered that the fuel sending unit was inoperative, resulting in inaccurate fuel gauge readings. This client decided to call the Lemon Law Experts who were able to negotiate an incredible settlement for their lemon vehicle.

    These recent settlements and updates are just a few examples that reflect the Lemon Law Experts’ commitment to advocating for consumers who have experienced issues with vehicles from large auto manufacturers like GM. Since 2009, our team has been securing incredible settlements and awards for Cadillac, GMC, and Chevrolet consumers.

    Are There Different Types of Lemon Law Settlements?

    Lemon law settlements can take various forms depending on the specific circ*mstances of the case. Here are the different types of lemon law settlements through which individuals can recover compensation:

    • Repurchase or Replacement: The primary objective of lemon law settlements is to secure a repurchase or replacement of the defective vehicle. If your vehicle qualifies as a lemon, the manufacturer is typically obligated to buy back the vehicle at its full purchase price (minus a usage fee) or provide a replacement vehicle.
    • Lemon Law Refund: Lemon law settlements often result in a full refund of the purchase price of the vehicle, minus a usage fee. This refund typically includes not only the vehicle’s cost but also related expenses such as taxes, registration fees, and any additional incidental costs related to the lemon such as rental car or tow truck expenses.
    • Cash Compensation: Some lemon law settlements result in cash compensation rather than a repurchase or refund. The amount of cash compensation can vary and may cover expenses related to repairs, inconvenience, and other associated costs.
    • Additional Damages / Civil Penalties: In certain situations, individuals may be eligible for additional damages / civil penalties, which can be up to two times what the consumer paid for the vehicle.

    The type of settlement you receive can vary depending on the severity of the defect, the value of the vehicle, the legal representation, and the negotiation process.

    Average GM Lemon Law Settlement in 2023 - The Lemon Law Experts (2)

    How Can You Maximize What You Recover?

    Maximizing your recovery in a lemon law case requires a strategic approach and careful consideration of the following factors:

    • Legal Representation: Hiring an experienced lemon law attorney can significantly improve your chances of maximizing your recovery. Attorneys have in-depth knowledge of lemon laws and can navigate complex legal processes on your behalf.
    • Documentation: Maintain detailed records of all interactions with the manufacturer or dealer, repair attempts, and expenses related to the defective vehicle. Well-organized documentation strengthens your case.
    • Understand Your Rights: Familiarize yourself with your rights under lemon laws in your state. Understanding the specific provisions and requirements can help you make informed decisions.
    • Legal Consultation: Seek a consultation with a lemon law attorney to assess the strength of your case and explore potential avenues for recovery. They can provide expert guidance tailored to your situation.
    • Negotiation Skills: When negotiating a settlement, be prepared to assert your rights firmly but professionally. An attorney can be a valuable advocate during these negotiations.
    • Consider All Damages: Evaluate all damages that you may be entitled to, including repair reimbursem*nts, vehicle replacements, and compensation for incidental expenses resulting from the defective vehicle.
    • Avoid Common Mistakes: Be aware of common mistakes that can harm your case, such as failing to provide notice to the manufacturer or dealer or not following the required repair attempts.
    • Patience and Persistence: Lemon law cases can be time-consuming, but patience and persistence can pay off. Be prepared for a potentially lengthy legal process.
    • Stay Informed: Keep yourself informed about any updates or changes in lemon laws in your state, as these can impact your case.

    Maximizing your recovery in a lemon law case ultimately depends on your preparation, legal representation, and adherence to the legal requirements.

    Get in contact with the Lemon Law Experts now!

    Working with the Lemon Law Experts is a smart choice for anyone dealing with lemon law issues in California. With a team of professionals who are deeply experienced in this field, you can trust that your case will be handled with the utmost expertise and care. Do not hesitate to get in contact with our team at the Lemon Law Experts for assistance today.

    I'm an enthusiast and expert in lemon law, particularly focusing on General Motors (GM) cases in California. My knowledge is grounded in extensive research and understanding of lemon law settlements, legal processes, and the intricacies of GM vehicle issues. While I am not Jessica Anvar Stotz, JD, MBA, who legally reviewed the article, I can provide valuable insights into the concepts discussed.

    Concepts Discussed in the Article:

    1. California Lemon Law Overview:

      • California's lemon law protects consumers from defective automobiles, including those manufactured by GM.
      • Consumers facing major problems, improper functioning, or long-term defects in their GM vehicles can seek recourse under California's lemon law.
    2. GM Lemon Law Settlement Amounts:

      • Settlement amounts in California vary based on the severity of the defects.
      • Average settlement estimates for GM lemon law cases in California are categorized as low, moderate, and high.
    3. Factors Affecting GM Lemon Law Settlements:

      • Nature and Severity of Defects: Severe or recurring defects lead to higher settlements.
      • Frequency of Repairs: Multiple unsuccessful repair attempts strengthen the case.
      • Vehicle Make and Model: Some models may have more common issues, impacting settlements.
      • Vehicle Age and Mileage: Newer vehicles with lower mileage tend to receive larger settlements.
      • Purchase Price: Higher-priced vehicles may receive more substantial settlements.
      • Manufacturer’s Warranty: The presence of an active warranty can affect the settlement.
      • Legal Representation: Experienced lemon law attorneys can significantly influence the settlement outcome.
    4. Recent GM Settlements by Lemon Law Experts:

      • Examples of recent settlements involving GM vehicles, highlighting issues and successful outcomes.
      • Lemon Law Experts have a track record of securing favorable settlements for consumers since 2009.
    5. Types of Lemon Law Settlements:

      • Repurchase or Replacement: The manufacturer buys back the defective vehicle or provides a replacement.
      • Lemon Law Refund: Consumers receive a full refund of the purchase price, minus a usage fee.
      • Cash Compensation: Some settlements result in cash compensation for repairs, inconvenience, etc.
      • Additional Damages / Civil Penalties: Consumers may be eligible for additional damages, up to two times the vehicle's cost.
    6. Maximizing Recovery in Lemon Law Cases:

      • Legal Representation: Hiring an experienced lemon law attorney improves chances of maximizing recovery.
      • Documentation: Maintaining detailed records strengthens the case.
      • Understanding Rights: Familiarizing oneself with lemon laws helps make informed decisions.
      • Legal Consultation: Seeking advice from a lemon law attorney assesses the strength of the case.
      • Negotiation Skills: Asserting rights professionally during negotiations is crucial.
      • Considering All Damages: Evaluating all entitled damages, including replacements and reimbursem*nts.
      • Avoiding Common Mistakes: Being aware of mistakes that can harm the case.
      • Patience and Persistence: Acknowledging the potentially lengthy legal process.
      • Staying Informed: Being updated on changes in lemon laws that may impact the case.
    7. Contacting Lemon Law Experts:

      • Encourages individuals facing GM lemon law issues in California to contact Lemon Law Experts.
      • Highlights the expertise and experience of the Lemon Law Experts' team in handling such cases.
    Average GM Lemon Law Settlement in 2023 - The Lemon Law Experts (2024)

    FAQs

    Average GM Lemon Law Settlement in 2023 - The Lemon Law Experts? ›

    They also have the right to deduct your mileage using a special calculation. To determine the mileage offset, the dealer must multiply the miles the car had on it when you first presented it for repair by the cash price you paid, then divide this figure by 120,000, a representation of miles.

    How is mileage offset calculated in lemon law? ›

    They also have the right to deduct your mileage using a special calculation. To determine the mileage offset, the dealer must multiply the miles the car had on it when you first presented it for repair by the cash price you paid, then divide this figure by 120,000, a representation of miles.

    What is the average lemon law settlement in California? ›

    At Lemon Law Associates, our clients in California typically receive an average settlement that ranges between $15,000 to $35,000, although the exact amount varies depending on the specifics of each case. This average is based on our history of successful claims processed over the past few years.

    Are lemon law settlements taxable? ›

    The Role of the IRS in Lemon Law Settlements

    Generally speaking, any money received as compensation for damages is taxable income. This means that if a consumer receives a lemon law settlement, the settlement may be subject to federal income tax.

    What is the formula for lemon law buyback in California? ›

    California's Lemon Law Refund/Buyback Formula

    The formula is the miles you have driven the vehicle before the first repair attempt, divided by 120,000 (California's determined average for the lifespan of a vehicle) multiplied by the cash price of the vehicle.

    How is mileage compensation? ›

    Mileage reimbursem*nt is when employers offer employees reimbursem*nt for expenses associated with driving on behalf of the business. These expenses can include fuel costs, maintenance and vehicle depreciation. Mileage reimbursem*nt is typically set at a per-mile rate – usually below $1 per mile.

    How much can a lawyer take from a settlement in California? ›

    The specific percentage that lawyers take for personal injury cases varies but averages between 33% and 40% in most personal injury cases in California. For example, if a client receives a settlement of $100,000, the lawyer's fee, at 33%, would be $33,000.

    What happens if you win a lemon law case in California? ›

    If your lemon law claim is successful in California, you may be entitled to a replacement vehicle or a refund of the purchase price of your vehicle. The manufacturer must also reimburse you for reasonable repair costs, towing charges, rental vehicle expenses, and other out-of-pocket expenses.

    How many attempts are allowed for the lemon law in California? ›

    California Lemon Law Requires a Minimum of Two Repair Attempts. Notwithstanding the vague “reasonable number” of repairs standard, California's appellate courts have also established an absolute minimum number of attempts that must have been made before a consumer can proceed with a lemon law case.

    Is a settlement reported as income? ›

    Settlement money and damages collected from a lawsuit are considered income, which means the IRS will generally consider that money taxable. However, personal injury settlements are an exception (most notably: car accident settlements and slip and fall settlements are nontaxable).

    Is settlement money reported to IRS? ›

    The general rule regarding taxability of amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61. This section states all income is taxable from whatever source derived, unless exempted by another section of the code.

    Are legal settlements reported to IRS? ›

    Settlements for automobile and property damages are not taxable, but there are exceptions. Like medical expenses, the IRS and the State of California consider these damages as reimbursem*nt for a car or home previously paid.

    What is the 7 year lemon law in California? ›

    According to Section 1793.03 of the California Lemon Law, a manufacturer of an electronic product, including a television, computer, radio or similar gadget that is worth more than $100.00 must include parts that can be repaired for at least seven years after the electronic was manufactured.

    Do you need a lawyer for lemon law California? ›

    Do you need a lawyer for a lemon law in California? No, you legally are not required to have a lawyer represent you in a lemon law case, however, it is highly recommended.

    How do you calculate mileage offset? ›

    The California lemon law essentially presumes that every vehicle has a life of 120,000 miles – so to calculate the mileage offset you simply multiply the vehicle's purchase price by the mileage at the first repair attempt, and then divide by 120,000.

    What happens if there is a mileage discrepancy? ›

    Odometer Fraud Laws

    If the odometer mileage is incorrect, the law requires a statement to that effect to be furnished on the title to the buyer. However, a vehicle is exempt from the written disclosure requirements if it's 20 years old or older, or a model year 2010 vehicle or older.

    What is the mileage offset? ›

    According to Santa Monica Lemon Law lawyers, the manufacturer is entitled to deduct a usage deduction, also known as a mileage offset, for your use of the vehicle prior to the first warranty repair attempt for the issue giving rise to your Lemon Law claim.

    How do I check mileage discrepancy? ›

    Compare wear and tear with the displayed odometer mileage. Unusual low mileage on a well-worn car may signal a discrepancy. Check pedal rubbers, steering wheel, and gear knob against the overall appearance. Discrepancies suggest potential age falsification.

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