In the context of car lemon law, it means that a manufacturer can pay less than what it would otherwise have to pay a consumer. It is a deduction based on the consumer’s use of the vehicle. We call this a “mileage offset.” In the example below the manufacturer would owe you $22,916.67 rather than $25,000.
The mileage offset is calculated by using the following formula: Purchase Price x (Miles Driven By Buyer At First Repair Attempt / 120,000) = Mileage Offset. Civ. Code section 1793.2(d)(2)(C).
For example:
Purchase Price……………………………………$25,000
Miles Driven By Buyer At First Repair……..10,000
$25,000 x (10,000 / 120,000) = $2,083.33
$25,000 minus $2,083.33 = 22,916.67
In some limited circumstances we are able to force the manufacturer to reduce the mileage offset or to waive it all together.