WHAT ARE THE “LAWFUL DEDUCTIONS?
The manufacturer may deduct an amount for mileage in excess of the first 12,000 miles. No deductions may be made for the first 12,000 miles of use. The law states that such deduction shall be calculated by taking the mileage in excess of 12,000 miles times the purchase (or lease) price, divided by 100,000. For example, if a defective car has 15,000 miles on its odometer and cost $20,000, the deduction for use would be $600 (3,000 multiplied by $20,000 divided by 100,000). In addition, a reasonable deduction may be taken for any damage not due to normal wear.
