What Qualifies as a Lemon Car in New York? Exact Criteria and Requirements

Introduction: Understanding Lemon Law Protections in New York

Purchasing a new or used car is a significant investment, and buyers expect their vehicles to function properly. However, when a car repeatedly fails despite multiple repairs, it may be classified as a “lemon.” The New York Lemon Law provides protections for consumers who unknowingly purchase defective vehicles, ensuring they receive either a refund or a replacement.

This article explains the exact criteria and requirements for a car to qualify as a lemon in New York, based on New York General Business Law Section 198-a for new vehicles and Section 198-b for used vehicles. By understanding the law’s scope, requirements, and exceptions, car owners can determine if they have a valid claim.

What is the New York Lemon Law?

New York has two distinct Lemon Laws: one for new cars and one for used cars.

• New Car Lemon Law (General Business Law § 198-a): Covers new and leased cars that develop significant defects within a specific time frame.
• Used Car Lemon Law (General Business Law § 198-b): Covers certain used cars sold by dealers that turn out to be defective soon after purchase.

Each law has specific qualifications, exclusions, and remedies that we will break down in detail.

Qualifications for a New Car to Be a Lemon in New York

Under New York’s New Car Lemon Law, a car must meet the following conditions to be considered a lemon:

• It must be covered by a manufacturer’s warranty at the time of original delivery.
• It must have been purchased, leased, or transferred within New York State.
• The defect must substantially impair the vehicle’s use, value, or safety.
• The manufacturer or dealer must have made at least four repair attempts for the same defect—or the vehicle must have been out of service for a total of 30 or more days due to repairs.
• The issue must not have resulted from abuse, neglect, or unauthorized modifications.
• The problem must have occurred within two years or 18,000 miles (whichever comes first) from the original delivery date.

If these conditions are met, the car owner may be entitled to a replacement vehicle or a full refund, minus a reasonable deduction for use.

Defining “Substantial Impairment”

The term “substantial impairment” means that the defect must significantly impact the safety, functionality, or resale value of the vehicle. Some examples include:

• Engine or transmission failure
• Brake system malfunctions
• Faulty steering components
• Recurring electrical system issues

If a defect does not affect the car’s use, value, or safety, it may not qualify under the Lemon Law.

Qualifications for a Used Car to Be a Lemon in New York

The Used Car Lemon Law in New York is different from the New Car Lemon Law and applies only to certain vehicles sold by dealers. To qualify:

• The car must be purchased or leased from a dealer, not a private seller.
• The car must have been sold for at least $1,500.
• It must have fewer than 100,000 miles at the time of purchase.
• The dealer must provide a written warranty covering defects in major components.

If the dealer cannot fix a covered defect after three repair attempts, or if the car is out of service for 15 or more days, it may qualify as a lemon.

Warranty Coverage for Used Cars

The dealer-provided warranty covers essential components such as the engine, transmission, and braking system. The warranty duration depends on the car’s mileage at purchase:

• 80,000 – 100,000 miles: 30-day or 1,000-mile warranty
• 60,000 – 79,999 miles: 60-day or 2,500-mile warranty
• Less than 60,000 miles: 90-day or 4,000-mile warranty

If the dealer fails to repair a qualifying defect within the warranty period, the buyer may be entitled to a refund or replacement.

Vehicles That Do Not Qualify as Lemons

• Motorcycles, off-road vehicles, and ATVs
• Commercial vehicles used for business purposes
• Vehicles purchased from private sellers
• Vehicles with problems caused by neglect, abuse, or unauthorized modifications

Business-owned vehicles generally do not qualify under the consumer-focused Lemon Laws. However, commercial buyers may have other legal options under the Uniform Commercial Code (UCC) or breach of warranty laws.

Steps to Strengthen a Lemon Law Claim

If you suspect your car is a lemon, taking the following steps can improve your chances of winning a claim:

• Report the problem immediately: Notify the manufacturer or dealer as soon as you experience issues.
• Keep all repair records, receipts, and work orders: These documents serve as proof of your repair attempts.
• Document each defect and repair attempt: Keep track of dates, descriptions, and any communication with the manufacturer or dealer.
• Obtain a copy of the manufacturer’s warranty: This ensures you understand your rights and coverage.
• Follow the manufacturer’s repair process: Ensure all required repair attempts are made before seeking arbitration or legal action.

How to File a Lemon Law Claim in New York

If your vehicle qualifies as a lemon, you can pursue compensation through the New York State Lemon Law Arbitration Program or file a lawsuit against the manufacturer.

Filing for Arbitration

New York provides a state-run arbitration program to resolve Lemon Law claims quickly. The process involves:

• Filing a Request for Arbitration: Submit your claim to the New York Attorney General’s office.
• Submitting all required documents: Include repair invoices, warranty information, and any supporting evidence.
• Attending a hearing: Both the owner and manufacturer will present their case before an independent arbitrator.
• Receiving a decision: The arbitrator will determine whether you qualify for a refund or replacement.

Arbitration is optional, and a car owner can bypass arbitration and file a lawsuit if preferred. However, arbitration is generally faster and less expensive than litigation.

Filing a Lawsuit

If arbitration is unsuccessful or the owner prefers legal action, they can file a lawsuit against the manufacturer. In this case, hiring a New York Lemon Law attorney is recommended, as experienced lawyers understand how to negotiate settlements or win cases in court.

How Long Does a Lemon Law Claim Take?

The length of the process depends on several factors, but generally:

• Arbitration cases: Typically take 90 to 120 days from start to finish.
• Court cases: Can take several months to over a year, depending on the complexity.
• Manufacturers may settle quickly: Many manufacturers prefer to settle to avoid lengthy litigation.

Additional Details:
New York Lemon Law Information