The Ultimate Guide to New York’s Used Car Lemon Law & Your Rights

Understanding Your Rights as a Used Car Buyer in New York

Buying a used car can be a great way to save money, but what happens if your newly purchased vehicle turns out to be a lemon? Many consumers assume that only new cars qualify for protection under New York’s Lemon Laws, but the state also offers legal safeguards for used car buyers. Understanding the New York Used Car Lemon Law, as outlined in General Business Law Section 198-b, can help you determine whether you are eligible for a refund or a replacement.

This guide breaks down your rights, eligibility criteria, legal protections, and the steps to take if you suspect your vehicle is a lemon.

What Is the New York Used Car Lemon Law?

The New York Used Car Lemon Law was enacted to protect consumers who unknowingly purchase defective used vehicles from dealerships. It provides a minimum warranty period and requires dealers to repair substantial defects that impair the vehicle’s use or safety. If the dealer cannot fix the defect within a reasonable number of attempts, the buyer may be entitled to a refund or replacement, according to the New York Attorney General’s Office

This law applies only to purchases from registered dealers—not private sales. It ensures that consumers have some level of protection when buying a pre-owned vehicle.

Eligibility Requirements Under the Used Car Lemon Law

To qualify for protection under New York’s Used Car Lemon Law, your vehicle must meet the following criteria:

• Purchased from a New York-registered dealer: Private sales are not covered.
• A purchase price of at least $1,500: Vehicles sold for less than this amount do not qualify.
• Fewer than 100,000 miles at the time of sale: Coverage varies based on mileage.
• Intended for personal use: Business or commercial vehicles are not covered.
• Sold with a written warranty from the dealer: The law mandates specific warranty durations based on mileage.

If your vehicle does not meet these requirements, you may need to seek alternative legal remedies, such as filing a claim under New York’s General Business Law § 349 (Deceptive Business Practices).

Mandatory Used Car Dealer Warranty Coverage

Dealers must provide a warranty based on the mileage of the vehicle at the time of sale:

• Vehicles with 18,001 – 36,000 miles: Warranty period: 90 days or 4,000 miles.
• Vehicles with 36,001 – 79,999 miles: Warranty period: 60 days or 3,000 miles.
• Vehicles with 80,000 – 100,000 miles: Warranty period: 30 days or 1,000 miles.

During this warranty period, the dealer is responsible for repairing any defects that significantly impair the vehicle’s operation or safety. If the dealer fails to resolve the issue, you may be eligible for a refund or replacement.

What Repairs Must Dealers Cover?

Under the Used Car Lemon Law, dealers must repair issues related to:

• Engine and transmission failures
• Steering and braking system defects
• Electrical system malfunctions
• Drive axle and differential problems
• Cooling and fuel system issues

The dealer is required to repair these defects at no cost to the buyer, as long as they arise during the warranty period.

How Many Repair Attempts Are Considered Reasonable?

The law requires dealers to make a reasonable number of repair attempts to fix the issue. In general, this means:

• The dealer has three attempts to repair the same issue.
• If the vehicle is out of service for 15 days or more due to repairs, it may qualify as a lemon.

If the dealer cannot resolve the issue within these limits, you may be entitled to a refund or replacement vehicle.

Steps to Filing a Used Car Lemon Law Claim in New York

If your used car qualifies under the law and the dealer fails to repair the issue, follow these steps to file a claim:

• Document the issue: Keep detailed records of the defect, repair attempts, and conversations with the dealer.
• Send a written notice to the dealer: Notify the dealer in writing that they must repair the vehicle or provide a refund.
• Allow the dealer a final repair attempt: Give the dealer one last opportunity to fix the problem.
• Request arbitration through the New York Attorney General’s Office: If the dealer does not comply, file a claim for arbitration.
• Prepare your case: Gather receipts, work orders, repair records, and all communication with the dealer.
• Attend the arbitration hearing: Present your evidence before an arbitrator who will decide whether you are entitled to relief.

Arbitration vs. Lawsuit: Which Should You Choose?

New York provides a state-run arbitration program for Used Car Lemon Law disputes, which is typically faster and less expensive than a lawsuit. However, arbitration is binding, meaning you must accept the decision.

Alternatively, you can file a civil lawsuit against the dealer, but this process may take longer and require hiring an attorney.

What Happens If You Win Your Lemon Law Claim?

If you succeed in your Lemon Law claim, you may be awarded:

• A full refund of the purchase price, minus a mileage deduction.
• A replacement vehicle of comparable value.
• Reimbursement for repair expenses.
• Possible coverage of legal fees if applicable.

The dealer must comply with the arbitration ruling or court decision within a specified timeframe.

Tips to Strengthen Your Lemon Law Claim

To increase your chances of success, follow these guidelines:

• Keep all repair records and receipts.
• Communicate with the dealer in writing.
• Request repair attempts as soon as defects appear.
• Follow up persistently if repairs are not completed.
• Seek legal advice if the dealer refuses to cooperate.

Additional Details:
New York Lemon Law Information