What happens when you are successful with a lemon law case? Does Ford buy the vehicle back at the original purchase price? Or do they just buy it less depreciation (eg current fair market value)?
In California they must make you whole. This includes (but is not limited to) refunding any/all payments you made up to the point of the settlement, minus the mileage offset which is calculated as:
(<purchase price> X miles at first incident) / 120,000
After refunding you your payments they must write a check to your lender paying off the remainder of the loan, and then they must write a check to your lawyer to cover his/her fees associated with the case.
California is perhaps the most consumer friendly lemon law state.
An example:
Say the agreed upon purchase price of the vehicle is 45,500.00
Say I had made 14 payments of 500$ so far
Say I took the vehicle in and reported the smell at 3,200 miles
Say my lawyer charges 1,800.00$ to file, and deal with the case
The mileage offset would be 1,213.33
My payments would be 7,000.00
Ford would write me a check for 5,786.67
Ford would write a check for the payoff to the lender (~40,000.00)
Ford would write a check to my lawyer for his fees (1,800.00)
Alternatively the manufacturer might offer to settle by replacing the vehicle w/ the same or newer model, or even offer a cash settlement to avoid going through a trial (costing them more money in lawyers fees).