New York Lemon Law Refund Calculator

How the New York buyback is calculated

Under the New York Lemon Law (GBL § 198-a).

• New York's New Car Lemon Law (GBL § 198-a) lets you choose a comparable replacement or a refund when the manufacturer cannot repair a defect that "substantially impairs the value of the motor vehicle to the consumer after a reasonable number of attempts" (§ 198-a(c)(1)). A used car sold by a dealer has its own refund rule (§ 198-b(c)(1)), which this estimate does not model.
• The refund is "the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges", and those fees and charges "shall include but not be limited to all license fees, registration fees and any similar governmental charges" (§ 198-a(c)(1)). The Attorney General's guide describes the price as cash plus the trade-in allowance, including all options.
• Two deductions come off. The first is an allowance for use: the miles over 12,000 times the purchase price, divided by 100,000 (§ 198-a(a)(4)). On a $35,000 car with 15,000 miles that is (15,000 − 12,000) ÷ 100,000 × $35,000 = $1,050. The statute does not say at which odometer reading the miles are counted; this calculator uses your current odometer, as the Attorney General's example does. The second is "a reasonable allowance for any damage not attributable to normal wear or improvements" (§ 198-a(c)(1)); the calculator has an optional box for it.
• The sales tax is refunded by the Department of Taxation and Finance, not the manufacturer: the manufacturer's refund must come with the application for credit or refund (the Attorney General's guide names form AU-11). The tax is prorated to the part of the price refunded (Tax Law § 1139(f); 20 NYCRR § 534.9(b)(1)), and the claim must be filed within three years of receiving the manufacturer's refund (§ 534.9(b)(3)).
• The Attorney General's guide says "Other expenses or charges, such as loss of use, insurance premiums, and finance charges are not included by law". The statute's list is open ("shall include but not be limited to"), so ask an attorney about anything else you paid. The refund goes to you and your lienholder as your interests appear on Department of Motor Vehicles records (§ 198-a(c)(2)).
• New York has no damages multiplier. If the manufacturer does not comply within 30 days after you accept an arbitrator's decision, you recover $25 for each business day of noncompliance, up to $500 (§ 198-a(h)). A court may award reasonable attorney's fees to a prevailing plaintiff (§ 198-a(l)).
• If you lease, the refund is divided between you and the lessor: you receive "the capitalized cost" (your deposit and rental payments, less service fees) and the lessor receives the lease price less what you paid; the lease ends and no early-termination penalty may be assessed (§ 198-a(c)(2)). The calculator follows that split: enter your service fees (the interest and insurance parts of your payments) and the lease price, and it subtracts the fees and takes the allowance for miles over 12,000 on the lease price (§ 198-a(a)(4), (a)(6)-(8)). The statute does not say whose share the allowance reduces, so the low and estimated figures deduct it from yours and the high figure does not.

New York lemon law: frequently asked questions

How much can I recover under the New York lemon law?

The refund is the full purchase price and any trade-in allowance, plus fees and charges including license and registration fees, less an allowance for miles over 12,000 and a reasonable allowance for damage not attributable to normal wear or improvements (§ 198-a(c)(1)). The sales tax comes back separately from the Department of Taxation and Finance, prorated to the part of the price refunded. A court may award a prevailing plaintiff reasonable attorney's fees. Run your numbers through the calculator for an estimate.

How does the 12,000-mile deduction work?

The first 12,000 miles are free: only the miles above that count. The formula is the miles over 12,000, times the purchase price, divided by 100,000 (§ 198-a(a)(4)). For example, a $35,000 car with 15,000 miles loses (15,000 − 12,000) ÷ 100,000 × $35,000 = $1,050, and a car at or under 12,000 miles has no mileage deduction. The refund can also be reduced by a reasonable allowance for damage not attributable to normal wear or improvements.

How do I get my sales tax back?

The manufacturer's refund must be accompanied by the proper application for credit or refund of the sales tax, as published by the Department of Taxation and Finance (the Attorney General's guide names form AU-11), and you file it with the Department (§ 198-a(c)(2); Tax Law § 1139(f)). The refund is of the tax on the price refunded, so it is prorated if only part of the price comes back (20 NYCRR § 534.9(b)(1)). You must file within three years of receiving the manufacturer's refund (§ 534.9(b)(3)).

Can I recover my attorney fees?

A court "may award reasonable attorney's fees to a prevailing plaintiff" (§ 198-a(l)). The award is discretionary, and the statute also lets the court assess fees against the manufacturer for enforcing collection of an award. It does not say how a fee agreement works or whether fees come out of your recovery, so ask your attorney.

Do I have to use the manufacturer's dispute program first?

If the manufacturer has established an informal dispute settlement mechanism, the refund and replacement provisions "shall not apply to any consumer who has not first resorted to such mechanism" (§ 198-a(g)). Using it never keeps you from court: "In no event shall a consumer who has resorted to an informal dispute settlement mechanism be precluded from seeking the rights or remedies available by law" (§ 198-a(h)). The Attorney General's arbitration program is your separate option (§ 198-a(k)).

How long do I have to bring a claim?

Any action under the New Car Lemon Law must be commenced within four years of the date of original delivery of the motor vehicle to the consumer (§ 198-a(j)). For a used car under § 198-b, the four years run from delivery of the used motor vehicle to you (§ 198-b(f)(6)).