New York's used car lemon law: the dealer warranty you're owed and when you can return the car

What is it?

General Business Law § 198-b requires dealers to give a written warranty when they sell or lease a used car to a consumer, and gives you a refund remedy if the dealer can't fix a covered defect. If a dealer fails to give the warranty, the law treats it as having given it anyway, and any agreement waiving these rights is void (§ 198-b(d)(1)). The dealer must also give you a notice titled "Used Car Lemon Law Bill of Rights" (§ 198-b(g)).

Who qualifies?

You, as a consumer who buys or leases a used car mainly for personal, family or household purposes from a dealer — a person or business that sold or leased three or more used cars in the previous 12 months (§ 198-b(a)(1), (3)). A used car is one bought, leased or transferred after the earlier of 18,000 miles or two years from original delivery (§ 198-b(a)(2)); cars with fewer miles may be covered by the new car lemon law. Your spouse or child is covered if the car is transferred to them during the warranty.

• Price (or agreed value, for a lease) of $1,500 or more (§ 198-b(d)(3)).
• No more than 100,000 miles at the time of sale or lease (§ 198-b(b)(1), (d)(3)).
• Bought or leased from a dealer in New York.

Exceptions

• Cars sold for less than $1,500 (§ 198-b(d)(3)).
• Cars with more than 100,000 miles, if the mileage was stated in writing at the sale (§ 198-b(d)(3)).
• Historical motor vehicles, motor homes and off-road vehicles (§ 198-b(a)(2), (d)(3)).
• Sales by banks (except leases), sales to the seller's own employees, a lessee buying out its own lease, and certain government and utility auction sales (§ 198-b(a)(3)).
• Private sales between individuals — the Attorney General confirms they aren't covered.
• The warranty may exclude failures caused by lack of customary maintenance, collision or abuse, racing, towing without proper equipment, use as a taxi or rental, and normal-wear valve and ring repairs, among others (§ 198-b(b)(4)).

How much?

During the warranty, the dealer must repair a covered part's failure, or at its choice reimburse you the reasonable cost of repair (§ 198-b(b)(2)).

If the dealer can't fix a covered defect that substantially impairs the car's value within a reasonable time, it must take the car back and refund the full purchase price — or, for a lease, all payments — including sales tax, minus a reasonable allowance for damage beyond normal wear and an adjustment for modifications that change the car's value. For a lease, all further payments are cancelled (§ 198-b(c)(1)). The dealer may offer a comparably priced replacement instead, but you don't have to accept it.

How is it calculated?

The purchase price is the cash difference you paid plus, if the dealer keeps your trade-in, the trade-in's wholesale value in the National Auto Dealers Association Used Car Guide (or another approved guide), adjusted for mileage, improvements and major defects — not necessarily the trade-in figure in your contract (§ 198-b(c)(1)). Refunds go to you and any lienholder according to DMV records. If the refund won't pay off your loan, the dealer must notify you by registered or certified mail that you have 30 days to pay the lender the difference, or the dealer's refund obligation ends.

Minimum warranty by mileage

• Up to 36,000 miles: at least 90 days or 4,000 miles, whichever comes first (§ 198-b(b)(1)(a)).
• More than 36,000 and less than 80,000 miles: at least 60 days or 3,000 miles (§ 198-b(b)(1)(b)).
• 80,000 to 100,000 miles: at least 30 days or 1,000 miles (§ 198-b(b)(1)(c)).
• Covered parts include the engine's lubricated parts, water and fuel pumps, transmission and torque converter, drive axles, brake master cylinder and calipers, radiator, steering gear and power steering pump, alternator, generator, starter and ignition system (not the battery) (§ 198-b(b)(2)).

What documents do you need?

• The sales or lease contract, the written warranty and the Used Car Lemon Law Bill of Rights notice — all due at or before signing (§ 198-b(e)).
• The odometer reading at the time of sale.
• Every repair order and the dates the car was in the shop.
• Your written notices to the dealer.
• Loan or lease papers, if you financed the car.

How do you get it?

1. 1

   Tell the dealer about every failure during the warranty

   As long as you notify the dealer within the warranty period, it must repair or reimburse even after the period ends (§ 198-b(b)(3)).

2. 2

   Keep track of attempts and days

   A reasonable opportunity to repair is presumed after three or more attempts on the same defect, or 15 or more days out of service, during the warranty (§ 198-b(c)(2)).

3. 3

   Ask for the refund in writing

   Cite § 198-b and attach your repair orders.

4. 4

   Use arbitration or court

   If the dealer has a qualifying dispute program, you must try it first; or apply to the state arbitration program through the Attorney General, which requires a filing fee (§ 198-b(f)(1), (3)).

What if they refuse?

The dealer must take part in state arbitration once you apply and pay the fee, and has 30 days after the decision is mailed to comply; late compliance costs $25 per business day, up to $500. The DMV can deny or suspend the registration of a dealer that deliberately fails to pay an award for 60 days (§ 198-b(f)(3)). A court may award reasonable attorney's fees to a consumer who wins (§ 198-b(f)(5)). You can also complain to the Attorney General.

Deadlines

• Notify the dealer of a covered failure within the warranty period (§ 198-b(b)(3)).
• The warranty is extended by the days the car is at the dealer for warranty repairs (§ 198-b(c)(3)).
• The 15-day count excludes days the dealer is waiting for parts despite due diligence — but after 45 days out of service in total, you are entitled to the refund or replacement remedy anyway (§ 198-b(c)(2)(b)).
• Lawsuits must be started within four years of the car's delivery to you (§ 198-b(f)(6)).

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-b(a)–(g) · Checked: October 30, 2026
  Dealer warranty terms, covered parts, refund remedy, presumptions, exclusions, arbitration, attorney's fees, four-year limit
• Used car lemon law guide — NY Attorney General (opens in a new tab)
  Office of the New York State Attorney General · Checked: October 30, 2026
  Attorney General guide: private sales not covered, $1,500 and 100,000-mile limits
• Lemon law program — NY Attorney General (opens in a new tab)
  Office of the New York State Attorney General · Checked: October 30, 2026
  State arbitration program for used cars
• File a complaint: Consumer issues — NY Attorney General (opens in a new tab)
  Office of the New York State Attorney General · Checked: October 30, 2026
  Complaints about dealers

Related questions

• How many repair attempts make a car a lemon in New York? · New York's new car lemon law: when you can get a refund or replacement car
• Does the lemon law cover leased cars? · New York's new car lemon law: when you can get a refund or replacement car
• Can a mechanic charge more than the estimate in New York? · Dispute with a car repair shop in New York: estimates, invoices, your old parts and getting your car back
• Can the shop keep my car until I pay? · Dispute with a car repair shop in New York: estimates, invoices, your old parts and getting your car back

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