Dealing With a Lemon Vehicle in New York
My new car keeps breaking down — here's what New York law says and what to do next.
Statute: N.Y. Gen. Bus. Law § 198-a (New Car Lemon Law), § 198-a(c) (refund or comparable replacement), § 198-a(d)(1)(i) (4 repair attempts) and § 198-a(d)(1)(ii) (30 cumulative days out of service), § 198-a(d)(2)(iii) (additional presumption: manufacturer's or agent's refusal to repair within 20 days of written notice by certified mail return receipt requested), § 198-a(k) (attorney fees to prevailing consumer), § 198-a(m) (state-administered Attorney General arbitration program at alternative to civil action); N.Y. Gen. Bus. Law § 198-b (Used Car Lemon Law, vehicles ≤ 100,000 miles with specified mileage-graduated warranty periods)
Deadline: 20 days
Penalty: Under N.Y. Gen. Bus. Law § 198-a(k), a prevailing consumer recovers reasonable attorney fees and costs; § 198-a(l) criminalizes certain manufacturer tactics as a misdemeanor. Consumers may elect the state-administered arbitration under § 198-a(m), conducted by the Attorney General's Office, as an alternative to civil action — decisions are binding on the manufacturer if the consumer accepts. The New York Lemon Law Arbitration Program (3 NYCRR Part 300) expedites claims and avoids 16 C.F.R. Part 703 manufacturer-run programs
What is dealing with a lemon vehicle?
Lemon laws exist because, before the late 1970s, buying a new car with a defect that nobody could fix meant you were just stuck with it. California passed the first modern lemon law — the Song-Beverly Consumer Warranty Act — in 1970 and tightened it with the Tanner Consumer Protection Act in 1982. Every other state followed by the early 1990s. The basic deal: if a new vehicle has a substantial defect that the manufacturer can't fix after a reasonable number of attempts, they have to replace it or refund you.
Every state has its own version, with different cutoffs for what qualifies, how many repair attempts you need, and which vehicles are covered. The federal Magnuson-Moss Warranty Act (1975) sits behind all of them as a backup — if a manufacturer doesn't honor a written warranty, you can sue under federal law and recover attorney's fees if you win, which is why most lemon-law lawyers will take your case on contingency.
What to Do If You Bought a Lemon
Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.
Step 2: Send written notice. A formal demand letter to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.
Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.
Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.
Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).
How New York differs from federal law
New York has both new and used car lemon laws, providing some of the strongest vehicle consumer protections in the country:
- New Car Lemon Law (Gen. Bus. Law Art. 11-A, §§ 198-a to 198-b): Covers new cars purchased or leased in NY. If a substantial defect is not repaired after 4 repair attempts or the car is out of service for 30+ cumulative calendar days during the first 2 years or 18,000 miles (whichever comes first), the manufacturer must provide a refund or replacement.
- Used Car Lemon Law (Gen. Bus. Law Art. 11-AA, § 198-b): Covers used cars purchased from dealers (not private sales). Coverage varies by mileage at purchase: cars with under 36,000 miles get 90 days/4,000 miles of warranty; 36,001-79,999 miles get 60 days/3,000 miles; 80,000-100,000 miles get 30 days/1,000 miles.
- Free arbitration: The NY Attorney General's office runs a free arbitration program (New Car Lemon Law Arbitration Program) for new car disputes. Decisions are binding on the manufacturer but not the consumer, who can still go to court if dissatisfied.
- Attorney fees: Consumers who prevail in lemon law court actions can recover reasonable attorney fees under Gen. Bus. Law § 198-a(k).
Additional steps in New York
File for free arbitration through the NY Attorney General's Lemon Law program at ag.ny.gov or call (800) 771-7755. For used car complaints, contact the NYS DMV or the AG's office. Keep all repair orders and records of time out of service.
What you should NOT do
Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.
Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.
Don't sign a quick settlement without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.
Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.
You shouldn't have to hire a lawyer to assert your rights.
Answer a few questions. We generate a personalized lemon law citing New York's exact statute, deadline, and penalties — ready to print and send in minutes.
Lawyers charge $350+. Your letter: $19.
Generate your lemon law →This page is general legal information for New York, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in New York.