Buying a car should bring peace of mind, not endless trips to the repair shop. But if your GM car has a significant defect that GM can’t or won’t fix, you may be entitled to a buyback, a replacement, or cash compensation. GM Lemon law exists to hold auto manufacturers accountable and ensure that consumers don’t get stuck with faulty vehicles.
GM Lemon law settlements come in different forms, depending on your car’s condition, repair history, and defect severity. The most common settlement is a buyback, where GM repurchases your defective car and reimburses you for what you paid. If you would prefer to keep your car, you might be eligible for a cash settlement, which compensates you for the defect without requiring you to return the vehicle. In some cases, GM may offer a replacement vehicle instead of a buyback. Each option has its pros and cons, and the settlement amount varies based on key factors like mileage, repair history, and negotiation strength.
If you’ve found out your GM is a lemon and you’re either seeking a refund, replacement or cash settlement, our team of expert Lemon law attorneys at Easy Lemon can help you get the compensation you deserve. We offer comprehensive Lemon Law Attorney Services for GM cars and models. Contact us today for a free case evaluation.
This post will cover what GM Lemon Law is, how Lemon law applies to GM cars, the Lemon law types available for GM cars, and how to get the highest possible GM Lemon law settlement.
The Lemon Law and How It Applies to GM Cars
Lemon Law is a consumer protection law that helps people who are stuck with defective vehicles. If your GM car has a significant issue that affects its use, safety, or value, and GM can’t fix it after multiple repair attempts, the law requires them to compensate you.
To qualify for a GM Lemon law claim, your vehicle must have a substantial defect and have undergone multiple unsuccessful repair attempts. In most cases, if GM has tried to fix the issue two to four times without success or if your car has spent at least 30 days in the repair shop, you may be eligible for a settlement. Your claim is also stronger if the defect happens while the car is still under the GM manufacturer’s original warranty.
GM Models or Brands Covered Under Lemon Law
Most GM models qualify for a Lemon law claim. However, here are the common models with more recalls by General Motors.
- GMC Terrain
- GMC Sierra
- GMC Canyon
- Chevy Traverse
- Chevrolet Malibu
- Buick Enclave
- Acadia
- Chevy Tahoe
- Chevrolet Silverado
- Chevrolet Camaro
- Buick Lacrosse
- Cadillac Escalade
- Cadillac XTS
- Chevrolet Suburban
- Chevrolet Cruze
- Chevrolet Spark
- Chevrolet Corvette
- Buick Regal
Types of GM Lemon Law Settlements
When your GM vehicle qualifies as a lemon, the manufacturer is legally obligated to compensate you, but the form of that compensation can vary. A GM Lemon Law settlement is a resolution between you and GM that ensures you are fairly reimbursed for your defective car. The type of settlement you receive depends on several factors, including the severity of the defect, how many repair attempts have been made, and your personal preference.
General Motors typically offers three types of settlements: a buyback, a replacement vehicle, or cash compensation, and each option has its advantages and drawbacks. So, choosing the right one depends on your unique situation.
GM Lemon Law Buyback
A GM Lemon law buyback is often the most favorable option, as it returns your money and frees you from the defective General Motors vehicle altogether. In a buyback, GM reimburses you for the purchase price, sales tax, registration fees, and other associated costs, minus a mileage offset that accounts for the miles driven before the defect was first reported.
The exact amount depends on mileage, usage, and repair history, but in most cases, a buyback is ideal if the defect is severe, persistent, or makes the vehicle unsafe to drive. Generally, a buyback is a great option if you want to move on from the car completely and get your money back.
Replacement Vehicle Option
If GM offers a replacement vehicle, you’ll receive a new or comparable GM car instead of a refund. This might be a good option if you like your vehicle’s model but want a functioning version of it. However, replacements aren’t always straightforward, GM may only offer certain models, and availability can be limited.
Plus, depreciation concerns could mean you’re getting a vehicle that’s not a perfect match for what you originally paid. While some consumers prefer this option, others find a buyback to be the more predictable and flexible solution.
Cash Compensation for Defective GM Vehicles
For those who want to keep their car despite its defects, a cash settlement is another option. Instead of GM buying back your vehicle, they compensate you financially for the inconvenience, diminished value, and repair issues. The settlement amount depends on how severe the defect is, the number of repair attempts, and how well you negotiate.
Furthermore, cash compensation is best suited for cases where the defect is frustrating but doesn’t make the car unsafe or completely unreliable. This option is also called cash and keep settlement and allows you to retain ownership while still receiving some financial relief.
How Much Money Can You Get from a GM Lemon Law Settlement?
Settlement amounts vary depending on factors like repair history, defect severity, and mileage. Buyback settlements often range from $20,000 to $60,000 or more, depending on the vehicle’s original price and how much you’ve already paid. Cash settlements typically fall between $5,000 and $25,000, while replacement vehicle values depend on the specific car GM offers.
If you’re filing a claim and seek a refund or replacement vehicle, you’re in a great position to receive a higher payout than in states with weaker laws.
Critical Factors That Determine GM Lemon Law Settlement
Several key factors influence how much you can receive in a settlement. One major factor is the number of repair attempts, the more times GM has unsuccessfully tried to fix your vehicle, the stronger your GM Lemon law case. The severity of the defect also plays a role. Major safety issues, like brake failure or engine problems, typically lead to larger settlements than minor issues, like a faulty infotainment system.
Mileage is another critical consideration. GM applies a mileage offset, which reduces your buyback amount based on how many miles you drove before the defect appeared. Lower mileage often means a better settlement. The number of days your car has been in the repair shop can also strengthen your case. If your car has been out of service for 30 days or more, your claim is more likely to succeed.
Finally, your ability to provide strong documentation, including repair orders, service invoices, and correspondence with GM, can significantly impact your settlement outcome. Ultimately, the more evidence you have, the better your chances of winning your claim.
Does Your GM Vehicle Qualify for a GM Lemon Law Claim?
Not every defective GM vehicle qualifies as a lemon, but if your car has a persistent defect that GM can’t fix, you may have a valid claim. To qualify, the issue must substantially impact the vehicle’s use, safety, or value, and you must have given GM a reasonable number of opportunities to repair it. The exact requirements depend on state laws, but most states follow general guidelines regarding repair attempts and time out of service.
The Lemon Law Presumption provides guidelines for determining a “reasonable” number of repair attempts if any of the following occurs within 18 months or 18,000 miles after the purchase or leasing of a new car, whichever occurs first.
- If you’ve taken your GM vehicle in for at least four or more repair attempts for the same issue (usually non-safety) without a successful fix.
- Your GM car has been in the shop for more than 30 days (not necessarily in a row) for repair of any problems covered by its warranty.
- If the manufacturer or dealer has made at least two unsuccessful repair attempts for a major safety issue (could cause death or serious bodily injury).
Some states also recognize cases where the vehicle has been out of service for 30 or more days due to the defect, even if there weren’t multiple repair attempts.
Additionally, you need to keep detailed documentation such as repair orders, service records, invoices, and any written complaints that will be submitted to GM. The stronger your evidence, the better your chances of securing a fair settlement, buyback, or replacement.
How Does the GM Lemon Law Process Work?
If your GM vehicle has a persistent defect that affects its safety, use, or value, you have legal rights to seek compensation. The key is to follow the proper steps, document everything, and act within the required time limits. The Lemon law process generally includes identifying the defect, making multiple repair attempts, notifying GM, and, if necessary, working with a GM Lemon law attorney to secure the best possible settlement. Here’s a closer look at what you need to do to maximize your claim and get the compensation you deserve.
Identify the Defect in Your GM Defective Vehicle
The first step in a GM Lemon law claim is confirming that your vehicle’s defect is substantial enough to qualify. Minor issues like a loose door handle likely won’t meet the legal threshold. Instead, the issue must significantly affect the car’s safety, functionality, or resale value. Common defects that lead to successful Lemon law claims include engine failure, transmission problems, faulty brakes, electrical malfunctions, and persistent steering issues.
It’s important to document every issue carefully. Keep a detailed log of when the defect occurs, how it impacts your vehicle, and any warning signs you notice. If the problem happens multiple times or remains unresolved after repeated repair attempts, your case becomes stronger. The more proof you have, the better your chances of securing a fair settlement.
Attempt Multiple Repairs
Lemon Law requires that you give GM a reasonable opportunity to fix the defect before filing a claim. Generally, this means taking your vehicle in for repairs at least four times for the same issue. Alternatively, if your car has been in the repair shop for an extended period (usually 30+ days) due to the defect, it may also qualify as a lemon.
Each time you take your car in, get a copy of the repair order and check that it accurately describes the problem and any work performed. It’s best to only use authorized GM dealerships or service centers, as using independent mechanics may weaken your case. Remember to safely keep all receipts and invoices as these documents are important evidence in proving your claim.
Notify GM About the Issue
Once it’s clear that your car’s defect is not being properly repaired, you need to formally notify GM. This typically involves contacting GM’s customer service department or sending a written complaint detailing the issue, repair history, and how the defect affects your vehicle.
After receiving your complaint, GM should respond with a resolution, whether that’s offering another repair attempt, a settlement, or a denial. If GM ignores your complaint or refuses to offer a fair resolution, you have the right to take further legal action.
Contact a Skilled Lemon Law Attorney
If GM denies your claim, offers an unfair settlement, or simply refuses to respond, it’s time to get a Lemon law attorney involved. An experienced lawyer will review your case, assess your repair records, and determine the best legal strategy to ensure you receive proper compensation.
Legal representation is often the key to securing the highest possible settlement. GM and other manufacturers may try to undervalue your claim or pressure you into accepting a low offer. A lawyer negotiates on your behalf, fights for your rights, and, if necessary, files a lawsuit to take GM to court. In most cases, attorneys handle Lemon law claims on a contingency basis, meaning you pay nothing unless they win your case.
At Easy Lemon, our expert Lemon law attorneys will handle everything for you and make sure you are not stuck with a defective car. Contact us today for a free consultation and let us turn your frustration into a success story.
File a Lemon Law Claim
If negotiations fail, your attorney may file a formal Lemon law claim against GM. This process involves submitting the necessary legal paperwork, providing all required documentation (repair records, complaint letters, GM correspondence), and adhering to state-specific deadlines. For example, claims must typically be filed within four years of the first defect appearing.
Once your claim is filed, GM may offer a settlement to avoid legal proceedings. If they do, it’s important to carefully evaluate the offer, some settlements may not fully compensate you for your losses. If negotiations stall, your case may proceed to arbitration or court.
Review and Respond to GM’s Settlement Offer
If GM offers a settlement, take the time to assess whether it’s truly fair. Some manufacturers lowball initial offers, hoping consumers will accept less than they deserve. Don’t rush into a decision and consult with an attorney if needed. You may be able to negotiate a better offer or push for a more favorable buyback, replacement, or cash compensation deal.
Consider Legal Action
If GM refuses to offer a reasonable settlement, you may need to take the case to court. While legal action can take longer, it often results in higher compensation, especially if GM is found to have acted in bad faith. However, going to court comes with risks, so it’s important to have strong documentation and legal representation. A skilled Lemon law attorney will guide you through the process, present your case, and fight to get you the maximum compensation possible.
How to Get the Highest Possible GM Lemon Law Settlement
The key to securing the highest possible settlement is gathering strong evidence and understanding your rights. When you keep detailed repair records, correspondence with GM, and expert evaluations, it can significantly boost your claim.
Understanding how GM calculates buybacks and settlements can also help you maximize your payout. The mileage offset formula is one factor that affects compensation, so the fewer miles you drive before reporting the defect, the better.
Additionally, working with an experienced Lemon law attorney is one of the most effective ways to make sure you don’t get a lowball settlement. Skilled attorneys know how to negotiate settlements, challenge lowball offers, and take your case to court if necessary. If GM is offering less than you deserve, an attorney can fight for the highest possible compensation on your behalf.
Need a Skilled GM Lemon Law Attorney Near You?
If your GM car has recurring defects that GM can’t fix, you may be entitled to a Lemon law settlement, which could include a buyback, a replacement vehicle, or cash compensation. Lemon law protections ensure that consumers receive fair settlements, often higher than in other states. The amount you receive depends on factors like repair history, defect severity, mileage, and documentation strength. To qualify, your vehicle must have undergone multiple unsuccessful repair attempts or spent significant time in the shop. The best way to maximize your settlement is to keep detailed records and work with a skilled Lemon law attorney who can negotiate the highest possible payout.
At Easy Lemon, we know how frustrating it is to deal with a car that keeps breaking down. That’s why we’re here to help you navigate the Lemon law process and fight for the compensation you deserve. Don’t hesitate to contact us today for a free consultation.
