A manufacturer buyback is a vehicle repurchased by the manufacturer after failing to meet warranty obligations, typically under a state lemon law or voluntary settlement. The title is permanently branded as a manufacturer buyback and must be disclosed at every subsequent sale.
Dealers acquiring buyback vehicles must ensure the defect that triggered the repurchase has been properly repaired and that the buyback brand is disclosed in any retail sale. Pricing must reflect the title brand's impact on financing eligibility and resale value.