ABA Family Legal Guide

Automobiles

Consumer Protections

Recalls

What must the automobile manufacturer do?

The manufacturer has the option of repairing the defect, replacing the car, or refunding the purchase price. If the manufacturer chooses to repair the defect, it must do so within a reasonable time. If the manufacturer does not opt to repair the defect, the manufacturer may choose to replace the vehicle or refund the purchase price. When refunding the purchase price, a manufacturer may deduct a certain amount for depreciation (loss in value).