There was a time when getting a ‘lemon’ or a car that is repeatedly sent to the repair shops for repairs and tune-ups was a total punishment with no hope. But not this time; thanks to the presence of lemon laws aimed at protecting the consumers against these duds. These laws are in place to ensure that the consumers get their due if the purchased car is repeatedly sent to the repair shop on almost the same issues and troubles. The law calls for two things that can be gained by the consumer. One, the consumer can get a replacement for the underperforming vehicle. And two, the consumer can count on the refund that can be offered by the manufacturer.

In the context of ‘lemon law’, the refund of an owned vehicle incorporates several costs:

• The purchase price. This is the price paid by the consumer for the vehicle, and