Consumer Warranty Law: 14.2.8.9 Effect of a Third Party Lender or Lessor on Replace or Refund Remedy
Most new car lemon laws provide that any refund must be made to the consumer, and the lienholder if any, as their interests may appear.439 This protects the manufacturer from refunding the full amount to the consumer and then having to pay some amount to a secured party to obtain clear title to the car. The lienholder and consumer will have to agree as to the amount due the lienholder.