It's too bad that you didn't speak to one from the beginning...
In itself it is not unlawful to sell a lemon buyback.
As to keeping the vehicle and dumping it later;
If they fix it, it no longer qualifies. If something happens in the future, whether it would fall under the lemon laws requiring the manufacturer to buy back the vehicle would be determine on the facts at that time.
There are laws in place limiting what deductions can be made.
You wonít get more than your actual costs though, at most so, unless you can purchase a like vehicle for the same price, then no you wonít get enough to purchase a similar vehicle.
There seems to be a magic number: 18,000 miles. It appears there are different rules in determining whether a vehicle can be classified a lemon before and after that milestone.
I thought they were shooting for a younger hipper demographic
I like that calling it certified pre-owned actually means something out there. It would appear it prevents selling a flood damaged car as cpo as well.
So, as it stands it shouldnít be a lemon buy back or flood car. I guess itís just cpo poc.
If op is concerned about long term issues I would suggest he divest himself of the car while he has the opportunity. Once itís fixed, he risks being stuck with a possible ticking time bomb and it may not fall back under the lemon law.