New York Lemon Law rules at a glance
The New York New Car Lemon Law is N.Y. Gen. Bus. Law § 198-a. The New York Attorney General runs the state arbitration program through the New York State Dispute Resolution Association (NYSDRA).
| Rule | What New York law says | Source |
|---|---|---|
| Statute | N.Y. Gen. Bus. Law § 198-a | § 198-a |
| Vehicles covered | Vehicles bought, leased or transferred in New York, or registered in New York, within 18,000 miles or 2 years of original delivery; Vehicles used mainly for personal, family or household purposes; Leased vehicles | |
| Not covered | Off-road vehicles; The living facilities of motor homes (separate motor home rules apply); Defects caused by abuse, neglect or unauthorized modification | |
| Protection window | 18,000 miles or 2 years from original delivery, whichever comes first | § 198-a(b)(1) |
| Four Repairs Test | The same defect was repaired 4 or more times and continues | § 198-a(d)(1) |
| 30 Days Out of Service Test | The vehicle was out of service for repair 30 or more calendar days in total | § 198-a(d)(2) |
| Written notice | Report the defect to the manufacturer or an authorized dealer within 18,000 miles or 2 years. A dealer must forward your report to the manufacturer by certified mail within 7 days. | § 198-a(b) |
| Dispute program first? | If the manufacturer has an informal dispute program, you must use it before the refund or replacement remedy applies. You may instead choose New York’s state arbitration program, which binds both sides (§ 198-a(g), (k)). | |
| Deadline | A lawsuit must be started within 4 years of original delivery | § 198-a(j) |
| Usage deduction | (miles over 12,000) × purchase price ÷ 100,000 | § 198-a(a)(4) |
Four repairs or 30 days within 2 years in New York
New York law presumes the manufacturer had a reasonable number of chances when any one of these tests is met inside the protection window (18,000 miles or 2 years from original delivery, whichever comes first):
Four Repairs Test
The same defect was repaired 4 or more times and continues.
§ 198-a(d)(1)30 Days Out of Service Test
The vehicle was out of service for repair 30 or more calendar days in total.
§ 198-a(d)(2)A dealer that receives your report must forward written notice to the manufacturer by certified mail within 7 days. If a dealer refuses repairs, you can notify the manufacturer by certified mail, and it then has 20 days to start repairs.
Notice to the manufacturer in New York
Report the defect to the manufacturer or an authorized dealer within 18,000 miles or 2 years. A dealer must forward your report to the manufacturer by certified mail within 7 days.
Dispute program first. If the manufacturer has an informal dispute program, you must use it before the refund or replacement remedy applies. You may instead choose New York’s state arbitration program, which binds both sides (§ 198-a(g), (k)).
New York’s 4-year limit and arbitration timing
A lawsuit must be started within 4 years of original delivery (§ 198-a(j)).
| Event | Date | Effect |
|---|---|---|
| Vehicle delivered | Mar 15, 2025 | The protection window starts |
| Protection window ends | March 15, 2027 | Repairs after this date do not count toward the tests |
| File by | March 15, 2029 | A lawsuit must be started within 4 years of original delivery |
If the manufacturer’s arbitration program is used first, start it early; the 4-year lawsuit limit runs from the original delivery date.
How to file a New York lemon law claim
- Report the defect within 18,000 miles or 2 yearsTo the manufacturer or an authorized dealer. Repairs must be free even after the period ends.
- Keep every repair orderThey prove the number of attempts and days out of service.
- Use the manufacturer’s program, or state arbitrationIf the manufacturer has an informal dispute program you must use it before the refund or replacement remedy applies, or you can file with New York’s state program, which binds both sides.
- Pay the state program fee if you choose itThe NYSDRA fee for a new car is $250, refunded if you win. The hearing is usually about 45 days after payment.
- Collect the awardThe manufacturer has 30 days after you accept the decision to comply, or pays $25 per business day late, up to $500.
Refund, replacement and the New York deduction for use
| Remedy | What it includes |
|---|---|
| Replacement | A comparable vehicle, at your option. |
| Refund | The full purchase price, any trade-in allowance and fees such as license and registration, minus a mileage deduction for miles over 12,000 and a reasonable allowance for damage beyond normal wear. |
| Lease refund | You receive the capitalized cost; the lessor receives the lease price minus your payments; the lease ends with no early-termination penalty. |
How the New York deduction for use is calculated
(miles over 12,000) × purchase price ÷ 100,000 (§ 198-a(a)(4)).
| Step | Math | Amount |
|---|---|---|
| Purchase price | — | $36,000.00 |
| Deduction for use | 3,000 miles over 12,000 × $36,000 ÷ 100,000 | −$1,080.00 |
| Refund before taxes, fees and other charges | Those are added under the rules above | $34,920.00 |
New York’s used car lemon law in brief
The New York Attorney General explains a second law for used cars bought or leased from a New York dealer:
| Mileage when bought | Dealer warranty |
|---|---|
| 18,001–36,000 | 90 days or 4,000 miles |
| 36,001–79,999 | 60 days or 3,000 miles |
| 80,000–100,000 | 30 days or 1,000 miles |
The warranty covers listed parts such as the engine, transmission, drive axle, brakes and steering. A reasonable chance to repair is presumed after 3 attempts or 15 days out of service. Private sales are not covered.
New York’s 12,000 free miles
New York deducts only the miles you drove beyond 12,000, divided by 100,000 (§ 198-a(a)(4)). Most owners who qualify early pay nothing for use.
| Miles at refund | Miles over 12,000 | Deduction |
|---|---|---|
| 10,000 | 0 | $0.00 |
| 17,000 | 5,000 | $2,000.00 |
| 24,000 | 12,000 | $4,800.00 |
State arbitration or the manufacturer’s program?
| Feature | State program (NYSDRA) | Manufacturer program |
|---|---|---|
| Binding? | Yes, on both sides | Not on you |
| Cost to you | $250 for a new car, refunded if you win | Usually free |
| Timing | Hearing about 45 days after the fee | Set by the program |
| If you win | Manufacturer complies within 30 days of acceptance; $25 per business day late, up to $500 | Same 30-day rule applies to accepted decisions |
If the manufacturer has an informal dispute program, the law makes you use it before the refund or replacement remedy applies; the state program is the alternative route that binds both sides.
When the dealer refuses repairs
A dealer that receives your complaint must send written notice to the manufacturer by certified mail within 7 days. If a dealer refuses to repair a covered defect within 7 days, you can notify the manufacturer by certified mail, and it then has 20 days to start repairs (§ 198-a(b)).
Second owners under New York’s new car law
The new car law covers a vehicle transferred within the first 18,000 miles or 2 years. Older used cars bought from a dealer may fall under New York’s separate used car lemon law. The new car law needs the manufacturer’s warranty. A used car bought from a New York dealer may qualify under the separate used car lemon law instead.
To test your own dates and repair visits, see whether your car meets New York’s tests.
New York Lemon Law FAQs
What is the lemon law in New York?
A new vehicle with a warranty defect that substantially impairs its value, reported within 18,000 miles or 2 years, qualifies after 4 repairs of the same defect or 30 days out of service. You choose a refund or a comparable replacement.
How is the New York lemon law refund calculated?
The full purchase price, trade-in allowance and fees such as license and registration, minus (miles over 12,000) × price ÷ 100,000 and any damage beyond normal wear. Sales tax is refundable through the state.
Is New York lemon law arbitration binding?
The state program run by NYSDRA for the Attorney General is legally binding on both sides. A manufacturer’s own program does not bind you.
How long do I have to file a lemon law claim in New York?
A lawsuit must start within 4 years of original delivery (General Business Law § 198-a(j)).
What is the lemon law in New York for used cars?
Cars bought from a New York dealer for at least $1,500 with under 100,000 miles get a dealer warranty of 30 to 90 days depending on mileage. Private sales are not covered.
Sources
Checked on October 13, 2026. We re-verify New York rules when the legislature, the courts or the agency change them. Read how we check every rule in our editorial policy.