Can I Trade-In or Sell My Lemon Vehicle and Still Pursue a Lemon Law Claim for Money Damages?

YES. The ordinary measure of damages for a claim brought under the Magnuson-Moss Warranty Act, also known as the federal Lemon Law, is based upon how much you overpaid for your vehicle at the time you originally purchased it plus payment of your attorneys’ fees. Therefore, you can still pursue a claim for substantial money damages even if you already traded in your vehicle or plan on doing so.

The bottom line is that when you purchased your lemon vehicle you paid more than it was worth considering the problems you later experienced with it. Federal law makes clear that you should be made whole for any amount over the cost you would have reasonably paid if you were aware of the vehicle’s true condition. Even if you got a good deal on trade, you still overpaid upfront and deserve to be compensated.

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