Attorney Jimmy represents cash and keep settlement lemon law cases. It is funny that it is called a cash and keep settlement lemon law case, because the compensation is usually in the form of a “check”, NOT cash.
Generally, in a cash and keep settlement lemon law claim, the consumer gets paid some reimbursement compensation, even though the manufacturer is not repurchasing the vehicle. Even though a lemon law buyback is not taking place, the consumer gets paid some compensation for the problems the vehicle had.
Vehicles usually fall under the lemon when the vehicle had problems while under warranty and the automobile manufacturer is unable to replace or repair the vehicle when it has serious issues regarding:
- The safety,
- The use,
- Or the value of the vehicle.
This cash and keep settlement lemon law diagram has important information about your legal options:
|Problem||Is Cash And Keep Settlement A Good Option?|
|Problems with use of the vehicle||Depends, probably not a good option if the problems are significant and get in the way of using the vehicle. If the problems are minor, it can make more sense.|
|Problems with safety of the vehile||Not usually a good option if your vehicle is having significant issues that involve the safety of the vehicle. Still, always consult a lawyer.|
|Problems with the value of the vehile.||Depending on the diminished value of the vehicle, and the value or sentimental value the vehicle has to you. If you love your car and want to keep it, or if you think it will be difficult to get another vehicle, it could be a good option.|
It would be difficult to determine if a cash and keep settlement would be a good option for you, without also knowing more about the other option of lemon law buybacks. In most cases, when you win, you either get a cash and keep settlement or instead you get a lemon law buyback.
Lemon law buybacks are typically more common than cash and keep settlements.
I have explained some important points in this table chart below.
|Cash And Keep Settlement||Lemon Law Buyback|
|Usually less common||Usually more common|
|1. You usually keep the vehicle to the end of your lease, or if its a purchase you keep the vehicle.||1. Typically, you immediately return the vehicle to the manufacturer.|
|2. You generally get paid less compensation than you would in a full buyback.||2. You will likely get paid more compensation than you would in a cash and keep settlement.|
|3. You are generally required to continue making the rest of your payments, lease payments, finance costs, etc.||4. Generally, after the manufacturer finishes buying back your vehicle, you no longer need to pay the future vehicle payments.|
- Imporant cash and keep settlement lemon law factors include:
- In a cash and keep settlement, the manufacturer accepts that the vehicle in question is a lemon or at least accepts to compensate the consumer.
- Also, the consumer maintains possession of the vehicle usually through either ownership or continued leasing of the vehicle generally until the end of his or her lease period.
- Next, the manufacturer pays the consumer to help compensate for pain and hardship or trouble the consumer had to go through. The manufacturer might choose to pay the consumer even if they do not believe the vehicle is fully a lemon.
A cash and keep settlement lemon law claim defined.
A cash and keep lemon law settlement is very different compared to a consumer lemon law “buyback,” because in a cash and keep settlement procedure the consumer is not returning the vehicle and the manufacturer is not buying back the vehicle. Instead, the consumer is continuing to keep the vehicle in their possession, and the manufacturer is compensating the consumer.
However, If the vehicle is a lease, the consumer will generally still return the vehicle at the end of the lease period.
Benefits of A Cash And Keep Settlement Within Lemon Law Cases
There are many consumer benefits to a cash and keep settlement. These benefits include:
|Benefits of Cash And Keep||Benefits of Lemon Law Buyback|
|1. They don’t repurchase your vehicle.||1. They repurchase buyback your vehicle.|
|2. You get compensation.||2. You get paid more compensation.|
|3. It may be easier to continue with your current vehicle than to get a new one that might be more expensive.||3. You get more compensation sometimes allowing you to go and lease another vehicle you can afford.|
|4. If you love your car and want to keep it despite its problems, its a good option.||4. You do not need to make more payments, after they buyback your vehicle.|
- You most likely still need your car to go to work, get groceries, or get from point A to point B. Through a cash and keep settlement, you can hold onto the vehicle longer and are NOT immediately required to return the vehicle back to the manufacturer by a lemon law buyback.
- There are downsides to returning the vehicle through a lemon law buyback, because getting a new vehicle may be difficult for many reasons such as raised prices, your credit score may have changed, or the vehicle might be a unique model that you enjoy. Fortunately, when you get a settlement for cash and keep you get to continue using the vehicle for the time being potentially saving you time, money, and headaches.
Should You Get A Cash And Keep Lemon Law Settlement?
There are both pros and cons of a cash and keep lemon law claim.
- It is generally good that you get to hold on and continue using the vehicle for the time being,
- but its bad that you are usually getting less of a reimbursement and less compensation than if the automobile manufacturer did a full buyback of the vehicle.
During a cash and keep settlement lemon law claim, you are essentially not getting a refund of the vehicle, but instead they are giving you a type of compensation subsidy amount just to get you out of their hair and prevent litigation.
Other times, you might have a very strong lemon law claim and they might give you a little more money, but a full buyback reimbursement of the vehicle is usually still going to be higher than a cash and keep.
Cash And Keep Settlement Or Lemon Law Buyback Instead?
Considerations to think about:
Is your vehicle dangerous to drive? A cash and keep settlement might not be the best option.
I never advise driving a vehicle that you know to be defective or that has serious issues that affect the safety or use of the vehicle such as:
- mechanical problems,
- engine problems,
- transmission problems,
- acceleration issues,
- deceleration issues,
- or any other type of defects that can lead to an automobile collision, car accident, or other legal consequence.
However, if the problems with your vehicle are minor then it can still be a good choice sometimes. Examples on minor issues may include things like:
- Window issues
- Radio issues
- Unimportant noises
- or other small issues that do not put your life in danger,
In my experience I usually see people interested in a cash and keep settlement under two different circumstances.
Manufacturer Only Lemon Law Settlement Offer Is Cash And Keep Settlement
The automobile manufacturer has offered a cash and keep settlement, but is not offering a lemon law buyback.
The automobile manufacturer, such as Ford, Toyota, Nissan, Volkswagen, Hyundai, or any other one is refusing to provide you or the consumer a full buyback of the vehicle because they do not believe that your lemon law case is strong enough.
They may be offering you a cash and keep because they might believe that you are not being adequately represent by strong enough legal counsel or they might think that you are not willing to risk it all and fight all the way to civil trial or civil litigation which can sometimes be very risky and expensive.
Indeed, in many circumstances it might be more beneficial to get some compensation through a cash and keep and get it fast, than to risk not getting anything at all if your case is not strong enough. It is a determination that must be made in every situation.
Consumer Wants A Cash And Keep Settlement Lemon Law
The other situation where I frequently hear people talking about getting cash and keep settlement include when the consumer does not want to give the car back yet.
This is generally due to the price of the vehicle, the inherent value of the vehicle, or other type of interest or benefit for the consumer not wanting to give the vehicle back to the manufacturer through a lemon law buyback process.
It can be a good decision based on your interests it really just depends. However, if the vehicle is truly defective and unsafe, I think you should strongly consider giving the vehicle back if possible.
Cash And Keep Settlement Statute of Limitations
Waiting too long to decide what path you want to take is never a good idea because there are statute of limitations time limit deadlines in lemon law and consumer rights cases.
What that means is that if you wait too long, the statute of limitations deadline might expire and you might be no longer able to pursue legal action against the manufacturer at all.
Next Step, Cash And Keep?
It is completely free consultation and free case evaluation to speak with our team and or lawyers today. We can review all of your repair invoices, vehicle contract, any cash and keep offer or release you may been given by the manufacturer, or speak to you about anything else you are dealing with.
Better call Jimmy! Thanks for reading. We are here on your side ready to speak with you. Hope you are doing well and safe out there and wish you all the best and all the success. Thanks for reading!