Ohio's Lemon Law - Free Truck for Me

[John Becker]

It appears that Ford Motor Company (FMC) will buyback or replace my 2023 Lariat SR under Ohio’s Lemon Law. It qualifies because “the vehicle has been in the shop for a cumulative total of 30 days or more during its first year or 18,000 miles.”

Ohio’s Lemon Law states:

…the manufacturer may, at your option, give you a new vehicle or refund the “full purchase price.” That price includes all of the following:​

• The purchase price for the car plus the costs for transportation, dealer preparation, delivery, dealer-installed accessories and other services.
• The costs for financing and credit insurance, as well as any warranty and service contract charges.
• Taxes and any other government charges, including state sales tax, license fees and registration fees.

I have two choices under the Lemon Law:

• Direct FMC to buyback my truck for my “out the door” cost ($65,547).
• Direct FMC to give me a new vehicle that is to my satisfaction.

https://www.ohioattorneygeneral.gov...s/Consumer-Tips/Consumer-Tips-Auto/Lemon-Laws

If I’m understanding all of this correctly, it appears that I could direct FMC to write me a check for $65,547. (The federal tax credit was another $7,500 off bringing my adjusted cost down to $58,047.) I could put that $65,547 toward a 2024 model or wait for 2025. I’d also consider used.

Alternatively, I could choose to direct FMC to give me a new vehicle that is to my satisfaction. And of course, everything is negotiable, but the law is on my side.

What should I be thinking about? I need help thinking this through.

Thanks!

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[Henry Ford]

Call a lawyer who specializes in lemon law. They will give you far better advice than a bunch of internet yahoos.

 

[Madtroniks]

If you can’t trust the advice given to you from Henry Ford on the internet, I don’t know who you can trust anymore in this world.

 

[Danface]

The olds saying is still true: When Ford gives you lemons, you make lemonade!

 

[mrau]

Take the money.

Then take your time to buy the truck you want, from the dealer you want and for the price you like.

Also, you may be eligible for another tax credit on your new purchase.

 

[RocketGhost]

I'm no expert, but I suspect that if you ask for a new vehicle they are going to give you what you had, a Lariat SR. They might make you pay for options your truck didn't have.

You'll almost certainly come out ahead by taking the cash. Do the math and see what you can get a new Lariat SR for, out the door is probably less than $65k if you hunt around for a good deal, the tax credit making it even more likely to pay off. You could win big if you buy used.

You can get the tax credit on the new purchase. There's a chance you could get it if Ford replaces your truck. You'd technically be the buyer, but if the purchase price is zero the IRS may not go along with it. But it may be that your truck would be a trade-in towards the new one with a balance of zero. In that case you purchased the new truck at a price.

There's no limit to the number of tax credits you can take in a year, but they cannot be taken if the intent of the purchase is to resell.

 

[VAF84]

Going through this myself. You don't have to pay back the tax credit, it's a one and done. You do have to deduct/pay for mileage usage calculation. You will have to pay off any liens/loans on the truck. So if you have a good interest rate, you will lose it.

You are eligible for the tax credit again as the tax credit is tied to the VIN not to the person.

I was originally going to take the cash, but I was going to lose the trade in tax credit. I realized that maximizing the MSRP (they do MSRP amount at purchase of your vehicle for MSRP value of new vehicle without discounts) was going to be the best move financially, not to mention I was going to get a more bang for my buck in case I wanted to trade for another LER once they develop one with more range/efficiency. Therefore I ordered (yes you can order) a loaded 2024 F150 King Ranch Hybrid that I'm waiting on. That way if I decide to go EV again, I can leverage the higher MSRP/future trade-in value and future tax credits when that time comes. That said, I believe that if you get something of lower MSRP than what you paid you get money back, but if you get something more than your vehicle's msrp at purchase you pay the difference.

BTW another option is cash settlement. They will make you a cash and keep offer subject to a confidentiality agreement (can't disclose offer amount to anyone). You keep your truck and all warranties, no title branding, and they give you settlement cash offer to keep it.

 

[John Becker]

They might make you pay for options your truck didn't have.

Many good points to consider.
I'm not inclined to pay for options that I don't want. I'd be willing to take any free upgrades.

I am willing to pay extra for a 2024 model or wait for 2025. The heat pump seems like a major enhancement.

 

[VAF84]

Many good points to consider.
I'm not inclined to pay for options that I don't want. I'd be willing to take any free upgrades.

I am willing to pay extra for a 2024 model or wait for 2025. The heat pump seems like a major enhancement.

The 24 has the heat pump. There are some already on the lot. I almost picked up a 2024 exactly like my 2023 in Colorado before deciding to opt for a 2024 Hybrid.

 

[John Becker]

BTW another option is cash settlement. They will make you a cash and keep offer subject to a confidentiality agreement (can't disclose offer amount to anyone). You keep your truck and all warranties, no title branding, and they give you settlement cash offer to keep it.

That's an interesting proposition that I'd consider. I really like my truck and just wanted it fixed.
Also, under Ohio's Lemon Law, there is no deduction for mileage usage calculation. They will pay me full purchase price.

 

[VAF84]

That's an interesting proposition that I'd consider. I really like my truck and just wanted it fixed.
Also, under Ohio's Lemon Law, there is no deduction for mileage usage calculation. They will pay me full purchase price.

I casually broached the question after some time of looking for my replacement, and I feel the offer was more than fair. Even now I'm still thinking about it as I wait for my ordered pickup to arrive. However, my use case requires more range, and I realized I was better off waiting for an EV truck with a bigger battery. I also replace my vehicles fairly regularly and we all know that Lightning trade-in values are painful. If I was keeping this 5-10 years I'd take the cash. They don't deduct mileage when you do that, and you basically just sign/notarize the paper and they mail you a check. Best part is, you have six months to change your mind and reopen your other options, but add'l mileage will still be added to the use calculation.

 

[jimfigler]

Take the money and then wait or shop

 

[Vcrpromo]

It appears that Ford Motor Company (FMC) will buyback or replace my 2023 Lariat SR under Ohio’s Lemon Law. It qualifies because “the vehicle has been in the shop for a cumulative total of 30 days or more during its first year or 18,000 miles.”

Ohio’s Lemon Law states:

…the manufacturer may, at your option, give you a new vehicle or refund the “full purchase price.” That price includes all of the following:​

• The purchase price for the car plus the costs for transportation, dealer preparation, delivery, dealer-installed accessories and other services.
• The costs for financing and credit insurance, as well as any warranty and service contract charges.
• Taxes and any other government charges, including state sales tax, license fees and registration fees.

I have two choices under the Lemon Law:

• Direct FMC to buyback my truck for my “out the door” cost ($65,547).
• Direct FMC to give me a new vehicle that is to my satisfaction.

https://www.ohioattorneygeneral.gov...s/Consumer-Tips/Consumer-Tips-Auto/Lemon-Laws

If I’m understanding all of this correctly, it appears that I could direct FMC to write me a check for $65,547. (The federal tax credit was another $7,500 off bringing my adjusted cost down to $58,047.) I could put that $65,547 toward a 2024 model or wait for 2025. I’d also consider used.

Alternatively, I could choose to direct FMC to give me a new vehicle that is to my satisfaction. And of course, everything is negotiable, but the law is on my side.

What should I be thinking about? I need help thinking this through.

Thanks!

I would take a brand new vehicle that is to my satisfaction, and consider changing model's so you don't have the same problem.

 

[John Becker]

After well over 30 days I got my truck back today (6/28/2024). Maybe I should consider it a loaner while FMC finds me a new one under Ohio's Lemon Law.
Maybe I should contact an attorney. I'm still thinking about it.

 

[Roy2001]

Call a lawyer who specializes in lemon law. They will give you far better advice than a bunch of internet yahoos.

What's the gain to pay lawyer if Ford give all your money back?

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