New York Lemon Law Buyback Calculator

How the New York buyback is calculated

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

• New York's Lemon Law (GBL § 198-a) lets you recover a refund (or a comparable replacement vehicle) when the manufacturer can't fix a covered defect after a reasonable number of attempts.
• Your refund starts from the price you paid and adds back the governmental charges: license fees, registration, title, and any manufacturer-installed options that were part of the priced vehicle.
• The only mileage deduction counts miles over 12,000. The first 12,000 miles are always free, and the offset is max(0, miles − 12,000) ÷ 100,000 × price. On a $35,000 car with 15,000 miles, that is (15,000 − 12,000) ÷ 100,000 × $35,000 = $1,050.
• Sales tax is recovered separately. The manufacturer does not refund it. Instead you claim it back from the New York State Tax Department by filing Form AU-11, within three years of getting your refund from the manufacturer.
• Finance and interest charges are not refundable under the New York Lemon Law, and there is no civil-penalty multiplier. The only extra money is a $25-per-business-day late fee if the manufacturer misses the compliance deadline, capped at $500.

New York lemon law: frequently asked questions

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

A buyback generally refunds the price you paid for the vehicle plus governmental charges like license, registration, and title fees, minus a mileage offset for the miles you drove over 12,000. Your sales tax comes back separately from the New York State Tax Department, and your attorney fees are paid separately by the manufacturer, not taken out of your recovery. Run your numbers through our calculator to see a personalized estimate.

How does the 12,000-mile deduction work?

New York gives you the first 12,000 miles free, so only the miles above that count against your refund. The formula is the miles over 12,000, divided by 100,000, times the purchase price. 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 deduction at all. This mileage offset is the only routine deduction the statute sets.

How do I get my sales tax back?

In New York the manufacturer does not refund your sales tax as part of the buyback. You recover it directly from the New York State Department of Taxation and Finance by filing Form AU-11, the application for a sales or use tax refund. You have three years from the date you receive your refund from the manufacturer to file, and the amount is proportional to the price you got back. It is real money, so it is worth claiming as a separate step.

Do I have to pay the attorney out of my recovery?

Generally no. Under GBL § 198-a a prevailing consumer can be awarded reasonable attorney fees and costs, which the manufacturer pays separately, on top of your buyback. That is why many New York lemon law attorneys work on contingency and the fees do not come out of your refund. Your estimated recovery is meant to be what you keep, not a number the lawyer then splits.

How long does a New York lemon law claim take?

It varies with the strength of your repair records and whether you use the state-run arbitration program or negotiate directly. Many claims resolve in a few months, while contested cases can take longer. A well-documented repair history, with multiple attempts and long out-of-service stretches, tends to move a manufacturer to settle faster. Our calculator can help you understand what is at stake before you start.