Why is there a manufacturers buy back?

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A manufacturer buy back happens when a new car has a serious defect that the manufacturer cannot fix after a reasonable number of repair attempts within the warranty period. This is the purpose of lemon laws: if persistent defects impair use, value, or safety, the manufacturer must repurchase the vehicle or replace it. An unintended recall is simply a repair campaign to fix a defect, not a buyback obligation. A cash incentive from the manufacturer is just a sales incentive, not a remedy for a defective vehicle. A dealer wanting to trade it in is just a dealer decision, not a legal remedy for defects. So the buyback happens because of lemon law.