New York's new car lemon law: when you can get a refund or replacement car

What is it?

General Business Law § 198-a adds a statutory layer to the manufacturer's written warranty. If a new car doesn't conform to its express warranty during the first 18,000 miles or two years after original delivery, whichever comes first, you must report the problem to the manufacturer, its agent or an authorized dealer during that period, and it must be fixed at no charge — even if the repair happens after the period ends (§ 198-a(b)(1)). If a defect that substantially impairs the car's value still can't be fixed after a reasonable number of attempts, the manufacturer must, at your option, replace the car or take it back and refund you (§ 198-a(c)(1)).

Who qualifies?

A consumer is the buyer, lessee or transferee of a car used primarily for personal, family or household purposes, and anyone else entitled to enforce the warranty (§ 198-a(a)(1)). The car must have had a manufacturer's express warranty at original delivery and either have been bought, leased or transferred in New York within the earlier of its first 18,000 miles or two years from original delivery, or be registered in New York (§ 198-a(a)(2)). The rights pass to a later owner (§ 198-a(i)). A lessee is covered if the lease makes the lessee responsible for repairs (§ 198-a(a)(5)). The Attorney General notes motorcycles are covered, and a business-owned car is covered if it is used mainly for personal purposes.

When a car counts as a lemon

• The same defect has been subject to repair four or more times within the first 18,000 miles or two years, and it still exists (§ 198-a(d)(1)); or
• The car has been out of service for repairs for a total of 30 or more calendar days during that period (§ 198-a(d)(2)); or
• The dealer refused to repair within 7 days of your report, you sent written notice of the refusal to the manufacturer by certified mail, return receipt requested, and the manufacturer didn't start repairs within 20 days of receiving it (§ 198-a(b)(2)).

Exceptions

• The manufacturer has a defense if the defect doesn't substantially impair the car's value, or results from abuse, neglect, or unauthorized modifications or alterations (§ 198-a(c)(3)).
• Off-road vehicles aren't covered (§ 198-a(a)(2)).
• For motor homes, the living quarters (plumbing, furnace, generator, and similar parts) aren't covered, and special notice rules may apply (§ 198-a(n)).
• If the manufacturer has an informal dispute program that meets the law's requirements, you must use it before you can demand a refund or replacement in court — but you keep the option of the state arbitration program instead (§ 198-a(g), (k)).

How much?

At your option: a comparable replacement car, or a refund of the full purchase price (or lease price) and any trade-in allowance, plus fees and charges such as license and registration fees and similar government charges. The manufacturer may subtract an allowance for miles beyond the first 12,000 and a reasonable allowance for damage not due to normal wear (§ 198-a(c)(1)). Refunds come with the form for getting back state and local sales tax from the Department of Taxation and Finance (§ 198-a(c)(2)).

For a lease, you receive what you paid in deposit and rental payments, minus service fees such as interest and insurance; the lease ends with no early-termination penalty (§ 198-a(a)(7)–(8), (c)(2)).

How is it calculated?

The mileage deduction is the number of miles over 12,000 multiplied by the purchase price (or lease price), divided by 100,000 (§ 198-a(a)(4)). The Attorney General's guide gives this example: a car that cost $20,000 and has 15,000 miles: (15,000 − 12,000) × $20,000 ÷ 100,000 = $600. Refunds are paid to you and any lienholder according to their interests shown on DMV records (§ 198-a(c)(2)).

What documents do you need?

• Purchase or lease contract and the manufacturer's warranty.
• Every repair order, showing the date in and out, the mileage and the problem reported — the Attorney General advises keeping careful records of all complaints and work orders.
• A count of days out of service.
• Copies of certified letters to the manufacturer and the return receipts.
• Registration, and proof of license, registration and other fees paid.

How do you get it?

1. 1

   Report every problem promptly

   Report defects to the dealer or manufacturer within the 18,000-mile / two-year period. A dealer that receives your report must forward written notice to the manufacturer within 7 days (§ 198-a(b)(1)).

2. 2

   Keep every repair order

   Each repair attempt and each day out of service may count toward the presumptions in § 198-a(d).

3. 3

   Ask the manufacturer for a refund or replacement in writing

   Once you reach four attempts or 30 days (or the manufacturer failed to start repairs after your certified notice), say which remedy you choose.

4. 4

   Go to arbitration or court

   Use the manufacturer's program, or apply to the state lemon law arbitration program run through the Attorney General, which requires a filing fee (§ 198-a(k)). You can also sue.

What if they refuse?

Under the state program, the Attorney General reviews your request and the arbitration is administered by the New York State Dispute Resolution Association; manufacturers must take part once you apply and pay the fee (§ 198-a(k)). If you accept an arbitrator's award, the manufacturer has 30 days to comply, and owes $25 per business day of delay, up to $500 (§ 198-a(h)). A court may award reasonable attorney's fees to a consumer who wins (§ 198-a(l)). Any contract term that waives or limits these rights is void (§ 198-a(i)).

Deadlines

• Report the defect within the first 18,000 miles or two years from original delivery, whichever is earlier (§ 198-a(b)(1)).
• These periods are extended for time repairs are unavailable because of war, strike, fire, flood or other natural disaster (§ 198-a(e)).
• Manufacturer compliance with an accepted arbitration award: 30 days (§ 198-a(h)).
• Lawsuits must be started within four years of the car's original delivery to you (§ 198-a(j)).

Frequently asked questions

Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

• N.Y. General Business Law (opens in a new tab)
  New York State Senate — Open Legislation (official text of the Consolidated Laws) · § 198-a(a)–(n) · Checked: October 30, 2026
  Coverage, duty to repair, presumptions, refund or replacement, mileage formula, arbitration, attorney's fees, four-year limit
• New car lemon law: a guide for consumers — NY Attorney General (opens in a new tab)
  Office of the New York State Attorney General · Checked: October 30, 2026
  Attorney General guide: coverage questions, record keeping, the $600 mileage example
• Lemon law program — NY Attorney General (opens in a new tab)
  Office of the New York State Attorney General · Checked: October 30, 2026
  State lemon law arbitration program and forms

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