New York Lemon Law: Do You Qualify?

New York lemon law at a glance

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New cars: 2 years from original delivery or 18,000 miles, whichever is earlier (§ 198-a(b)(1)); the period is extended by days repair services were not available because of a war, invasion, strike, fire, flood or other natural disaster (§ 198-a(e)). Used cars: the dealer warranty must run at minimum 90 days or 4,000 miles (36,000 miles or less at sale), 60 days or 3,000 miles (more than 36,000 but less than 80,000), or 30 days or 1,000 miles (80,000 up to 100,000), whichever comes first (§ 198-b(b)(1)). A vehicle over 100,000 miles is excluded if the mileage is indicated in writing at the sale (§ 198-b(d)(3)).

Repair attempts

New cars: the same defect repaired four or more times by the manufacturer or its authorized dealers within the period, and the defect "continues to exist"; the Court of Appeals reads that as meaning the fourth attempt was unsuccessful (§ 198-a(d)(1); Matter of DaimlerChrysler Corp. v. Spitzer). Section 198-a(d) has one count for every kind of defect. Used cars: three or more repairs of the same covered-part defect by the selling or leasing dealer or its agent within the warranty term, and the defect continues to exist (§ 198-b(c)(2)(a)).

Days out of service

New cars: 30 or more cumulative calendar days during the period (§ 198-a(d)(2)). Used cars: 15 or more cumulative days during the warranty term, not counting days the dealer could not finish the repair for lack of necessary parts; at 45 cumulative days the remedies apply even if some were parts delays (§ 198-b(c)(2)(b)).

Written notice

New cars: you must report the defect to the manufacturer, its agent or its authorized dealer during the 2-year / 18,000-mile period; the dealer must forward written notice to the manufacturer within seven days (§ 198-a(b)(1)). If a dealer refuses to start repairs within seven days, you may send the manufacturer written notice by certified mail, return receipt requested, and it then has 20 days to begin repairs (§ 198-a(b)(2)). Motor homes have a special certified-mail report after two repairs or 21 days out of service, which applies only if you were given the requirement in writing and acknowledged it (§ 198-a(n)(6)).

Used vehicles

A car bought before 18,000 miles or two years from its first delivery stays under the new-car law, whose rights pass to a later owner (§ 198-a(i); § 198-b(a)(2)). Cars sold after that are covered under § 198-b when sold by a "dealer," with the tiered warranty above, which covers at least the engine, transmission, drive axle, brakes, radiator, steering, and the alternator, generator, starter and ignition system (not the battery) (§ 198-b(b)(2)). A private sale is not covered; used motor homes, historical vehicles, vehicles sold for under $1,500 and off-road vehicles are excluded.

Dispute programs

If the manufacturer (§ 198-a(g)) or a dealer (§ 198-b(f)(1)) has an informal dispute settlement mechanism that complies with the law, the refund and replacement provisions do not apply until you have first used it; using it never keeps you from court. The Attorney General's arbitration program (13 NYCRR Part 300) is your option for both laws; the manufacturer or dealer must submit to it, and the arbitrator's decision "is binding on both parties and is final, subject only to judicial review pursuant to CPLR, article 75".

New York lemon law: frequently asked questions

What qualifies as a lemon under the New York lemon law?

A new car may qualify when a defect that substantially impairs its value has been subject to repair four or more times by the manufacturer or its authorized dealers and still exists after the fourth attempt, or the car has been out of service 30 or more cumulative calendar days, within 2 years or 18,000 miles of delivery, whichever is earlier. Motorcycles are covered; off-road vehicles and the living facilities of motor homes are not. The vehicle must be used primarily for personal, family or household purposes. The manufacturer has a defense if the defect does not substantially impair the value of the vehicle, or results from abuse, neglect or unauthorized modifications or alterations (§ 198-a(c)(3)).

Does New York have a used-car lemon law?

Yes. N.Y. Gen. Bus. Law § 198-b makes dealers give a written warranty tiered by mileage at sale, from 90 days or 4,000 miles on lower-mileage cars down to 30 days or 1,000 miles at 80,000 to 100,000 miles. "Dealer" is defined by volume, not by licensing: § 198-b(a)(3) reaches anyone who sold, offered, leased, or offered to lease three or more used vehicles in the previous twelve months, but not, for example, a bank selling a repossessed car, a business selling to its own employee, or the State. Within the warranty, three failed repairs of a covered part by the selling dealer, or 15 cumulative days out of service, presume the dealer had a reasonable opportunity to correct it. The dealer has a defense if the defect does not substantially impair the vehicle's value or results from abuse, neglect or unreasonable modifications (§ 198-b(c)(1)).

Do I have to notify the manufacturer before filing?

The new-car law requires you to report the defect to the manufacturer, its agent or its authorized dealer within the 2-year / 18,000-mile period (§ 198-a(b)(1)); the dealer must then forward written notice to the manufacturer. A separate written notice by certified mail comes in if a dealer refuses to start repairs within seven days: the manufacturer then has 20 days from receiving it to begin repairs (§ 198-a(b)(2)). If the manufacturer runs an informal dispute program, you must use it before the refund or replacement provisions apply (§ 198-a(g)).

What can I recover under the New York lemon law?

A qualifying consumer chooses between a comparable replacement vehicle and a refund of the full purchase price or lease price, any trade-in allowance, and fees and charges including license and registration fees, less an allowance for use beyond the first 12,000 miles and a reasonable allowance for damage not attributable to normal wear or improvements (§ 198-a(c)(1)). Sales tax is refunded separately by the Department of Taxation and Finance. The Attorney General's guide says loss of use, insurance premiums and finance charges are not included by law. Under the used-car law the dealer refunds the full purchase price including sales or compensating use tax (or, for a lease, all payments made), less a reasonable allowance for damage not attributable to normal wear or usage; the dealer may instead offer a comparably priced replacement, which you need not accept (§ 198-b(c)(1)). A court may award reasonable attorney's fees to a prevailing plaintiff (§ 198-a(l); § 198-b(f)(5)). A contract cannot take these rights away: an agreement that "waives, limits or disclaims the rights set forth in this section shall be void as contrary to public policy" (§ 198-a(i); § 198-b(d)(1) says the same for a used car), and other rights and remedies under any other law are not limited (§ 198-a(f); § 198-b(d)(2)).

How long do I have to bring a New York lemon law claim?

A new-car lemon law action must be started within 4 years of the original delivery of the vehicle (§ 198-a(j)). A used-car lemon law action must be started within 4 years of the delivery of the used car to you (§ 198-b(f)(6)). The 2-year / 18,000-mile figures are the new-car eligibility period, a separate concept from the filing deadline.

Statutes cited on this page

• N.Y. Gen. Bus. Law § 198-a(b)(1) (New Car Lemon Law: report the nonconformity; correction at no charge)
• N.Y. Gen. Bus. Law § 198-a(d) (New Car Lemon Law statutory presumption)
• DaimlerChrysler Corp. v. Spitzer, 7 N.Y.3d 653 (2006)
• N.Y. Gen. Bus. Law § 198-a(c)(1) (consumer election of a comparable replacement or a refund of the full price plus fees and charges, less the mileage allowance and an allowance for damage)
• N.Y. Gen. Bus. Law § 198-b(b)(1)-(2) (Used Car Lemon Law: written warranty and covered parts)
• N.Y. Gen. Bus. Law § 198-b(b)(1) (Used Car Lemon Law: warranty terms by mileage)
• N.Y. Gen. Bus. Law § 198-b(c)(1)-(2) (Used Car Lemon Law: failure to honor the warranty; statutory presumption)
• N.Y. Gen. Bus. Law § 198-a(k) (Attorney General alternate arbitration; the consumer's option)
• 13 NYCRR § 300.16(h) (Lemon Law Arbitration Program: effect of the decision)

This page summarizes the statute in plain language and is not legal advice. The linked official text controls.