New York Lemon Law (2026): How to Qualify & Get a Refund

New York's Lemon Law under N.Y. Gen. Bus. Law 198-a covers new vehicles purchased or leased with a manufacturer warranty. The qualifying threshold is four or more failed repair attempts for the same defect, or 30 or more cumulative days out of service, within two years or 18,000 miles. If a vehicle qualifies, the consumer chooses between a full refund or a comparable replacement vehicle.

Overview of New York's Lemon Law

New York enacted its Lemon Law in 1983, making it one of the earliest and most consumer-friendly lemon laws in the United States. The law is codified in General Business Law Article 11-A, Sections 198-a through 198-c. It protects buyers and lessees of new vehicles that turn out to have serious, unrepairable defects.

New York also has a separate Used Car Lemon Law under Section 198-b that requires dealers to provide written warranties on qualifying used vehicles. Together, these two laws give New York consumers some of the strongest vehicle purchase protections in the country.

The New York Attorney General's office administers the state's lemon law arbitration program. It gives consumers an alternative to hiring a lawyer and going to court, but it is not free: a $250 filing fee applies in new car cases, and it comes back to you only if the arbitrator rules in your favor.

What Vehicles Are Covered Under the New Car Lemon Law

The New York Lemon Law under GBS Section 198-a covers a broad range of new vehicles. The vehicle must have been purchased, leased, or registered in New York State and come with a manufacturer's warranty.

Covered Vehicles

• Passenger cars, including sedans, coupes, and hatchbacks
• Pickup trucks used primarily for personal purposes
• Vans and minivans
• Street-legal motorcycles with manufacturer warranties
• Motorhomes, other than the living facilities listed in Section 198-a(n)(3)
• Demonstrator vehicles sold as new with remaining warranty
• Leased vehicles used primarily for personal, family, or household purposes
• Electric vehicles (EVs) and hybrid vehicles that meet all other eligibility requirements

Vehicles Not Covered

• Vehicles purchased primarily for commercial or business use
• Off-road vehicles not designed for highway use
• The living facilities of a motorhome, which Section 198-a(n)(3) defines as the flooring, plumbing system and fixtures, roof air conditioner, furnace, generator, electrical systems other than automotive circuits, the side entrance door, exterior compartments, and windows other than the windshield and the driver and front passenger windows
• Vehicles sold "as is" without any manufacturer warranty

Motor Homes

Motor home coverage is broader than many owners assume. Section 198-a(n)(3) carves out only the living facilities, meaning the portions designed, used, or maintained primarily as living quarters: the flooring, the plumbing system and fixtures, the roof air conditioner, the furnace, the generator, electrical systems other than automotive circuits, the side entrance door, exterior compartments, and windows other than the windshield and the driver and front passenger windows. Everything else, not just the chassis and drivetrain, falls under the law.

Subdivision (n) also sets a separate procedure for motor homes. Under Section 198-a(n)(6), once the same covered defect has been subject to repair two times, or the motor home has been out of service for repairs for 21 days, whichever comes first, you must report that to the manufacturer or its authorized dealer by certified mail, return receipt requested. You may then bring a proceeding once the motor home has been out of service by reason of three repair attempts or for at least 30 days.

This special notification requirement applies only if the manufacturer or its authorized dealer gave you a written copy of it and you acknowledged receipt in writing. If it applies and you skip it, repair attempts and days out of service that follow do not count toward your remedy until you comply.

Electric and Hybrid Vehicles

Electric vehicles and plug-in hybrids are covered under the same lemon law provisions as traditional gasoline-powered vehicles. Common EV-specific defects that may qualify include battery degradation beyond manufacturer specifications, charging system failures, electric motor malfunctions, and software issues that affect drivability or safety.

Because EV technology is relatively new and evolving, repair shops sometimes struggle to diagnose root causes on the first attempt. Document every visit carefully, including the symptoms described and the repairs performed.

New York's Lemon Law Presumption

Under GBS Section 198-a, New York creates a rebuttable presumption that a vehicle is a lemon if certain conditions are met within the first two years of delivery or 18,000 miles, whichever comes first.

When the Presumption Applies

The presumption shifts the burden of proof to the manufacturer. The manufacturer must then demonstrate that the vehicle does not qualify as a lemon. Even if the presumption does not apply, consumers can still pursue claims by proving the manufacturer failed to repair a substantial defect within a reasonable number of attempts.

What Counts as a "Substantial" Defect

A defect qualifies as substantial if it impairs the vehicle's use, value, or safety. The Attorney General's fact sheet describes the types of problems that typically qualify.

Examples of substantial defects include:

• Engine or transmission failures that affect drivability
• Brake system malfunctions creating safety hazards
• Steering problems that reduce vehicle control
• Electrical system failures affecting critical components
• Airbag or safety restraint system defects
• Persistent warning lights tied to serious mechanical issues
• Water leaks causing interior damage or mold
• Defective heating or air conditioning systems

Minor cosmetic issues like small squeaks, rattles, or paint imperfections typically do not qualify. However, if a cosmetic problem significantly reduces the vehicle's resale value, it may meet the threshold.

Consumer Remedies: Refund or Replacement

When a vehicle qualifies as a lemon, the consumer chooses between two remedies: a full refund or a comparable replacement vehicle.

Option 1: Full Refund (Buyback)

The manufacturer must refund all of the following:

• Full purchase price, including the contract price, sales tax, and delivery charges
• License and registration fees paid to the DMV
• Finance charges, including interest and loan fees already paid
• Incidental costs such as towing, rental cars, and other reasonable expenses caused by the defect
• Loan payoff paid directly to the lender to satisfy any outstanding balance

The manufacturer may deduct a mileage offset for miles driven beyond the first 12,000. New York law provides no deduction for the first 12,000 miles of use. The offset is calculated only on miles above that threshold:

Mileage Offset = (Miles in Excess of 12,000 x Purchase Price) / 100,000

For example, if you paid $40,000 for a vehicle and it had 15,000 miles when the refund is issued, the offset covers only the 3,000 miles above 12,000, resulting in a deduction of $1,200. A vehicle with 10,000 miles would have zero offset.

Option 2: Comparable Replacement Vehicle

Instead of a refund, the consumer may request a comparable replacement vehicle. The replacement must be of the same or equivalent value, acceptable to the consumer, and covered by a full manufacturer warranty. This option works well when the consumer still wants the same type of vehicle and prefers not to go through the purchase process again.

Leased Vehicle Remedies

If you lease a vehicle that qualifies as a lemon, you are entitled to a refund of all lease payments made, return of your security deposit, and termination of the lease agreement without any early termination penalties. The lessor and manufacturer share responsibility for making the consumer whole.

Federal Protection: The Magnuson-Moss Warranty Act

New York's Lemon Law works alongside the federal Magnuson-Moss Warranty Act (15 U.S.C. 2301 et seq.), which applies to consumer products sold with written warranties. Under Magnuson-Moss, if a manufacturer fails to honor its warranty obligations, a consumer may sue in federal or state court and recover damages plus attorney's fees. This federal backstop means that even if a claim does not perfectly meet the New York lemon presumption thresholds, a consumer may still have a viable claim based on breach of the manufacturer's written warranty. The two laws work together to give New York consumers overlapping layers of protection.

How to File a Lemon Law Claim

Filing a successful lemon law claim requires careful documentation and following the correct procedures from the start.

Step 1: Document Everything

• Keep copies of every repair order and invoice
• Record the exact dates your vehicle went in for service and when it was returned
• Write down the symptoms you reported at each visit
• Save all written communications with the dealer and manufacturer
• Take photographs or videos of the defect whenever possible
• Keep a log of days the vehicle was unavailable for use

Step 2: Send Written Notice to the Manufacturer

Section 198-a(b)(1) requires you to report the problem to the manufacturer, its agent, or an authorized dealer while the vehicle is still within 2 years or 18,000 miles. If a dealer then refuses to start repairs within seven days of your report, Section 198-a(b)(2) lets you send the manufacturer written notice of that refusal by certified mail, return receipt requested. Written notice is what starts the manufacturer's clock, so keep a copy of everything you send. The notice should include:

• Your name and contact information
• Vehicle details (year, make, model, and VIN)
• A clear description of the defect
• A summary of the repair history

Step 3: Know When Your Claim Is Ripe

Section 198-a does not impose a separate final repair attempt after you send notice. Your entitlement turns on the presumption in Section 198-a(d): four or more repair attempts for the same defect, or 30 or more cumulative days out of service, within 2 years or 18,000 miles.

The clock that does run against the manufacturer is the 20-day window in Section 198-a(b)(2). If a dealer refused to start repairs within seven days and you sent the manufacturer certified written notice of that refusal, the manufacturer has 20 days from receipt to commence repairs. If it does not, you may demand a comparable replacement or a refund at that point. Motor home owners have the separate notification duty described above.

Step 4: Choose Arbitration or Court

You have two options: file for arbitration through the state program (the usual route for most consumers, with a $250 filing fee that is returned if you win) or hire an attorney and pursue the claim in court.

New York's Lemon Law Arbitration Program

New York runs one of the strongest consumer arbitration programs in the country through the Attorney General's Lemon Law Unit. The program is administered by the New York State Dispute Resolution Association (NYSDRA).

Key Features of the Arbitration Program

• A filing fee applies. Section 198-a(k) conditions the program on payment of a prescribed filing fee. NYSDRA collects $250 in new car cases and $120 in used car cases, and returns the fee if the arbitrator rules in your favor.
• Binding on both parties. The Attorney General's Request for Arbitration form tells applicants that the arbitrator's decision is binding on both parties, subject to a limited right of appeal to court by either party. Section 198-a(k) places the program under CPLR Article 75, so an unfavorable award cannot simply be relitigated from scratch in court.
• A manufacturer's own program works differently. If you use a manufacturer-run informal dispute settlement mechanism under Section 198-a(g), the manufacturer has 30 days to comply after you notify it that you accept the award, and owes $25 for each business day of delay up to $500. Section 198-a(h) also preserves your other legal remedies in that setting.
• Fast resolution. Cases are typically decided within 40 to 60 days of filing.
• Local hearings. Hearings are held through Community Dispute Resolution Centers across all 62 New York counties.

How to Apply

1. Obtain a "Request for Arbitration" form from the Attorney General's website or by emailing nyag.lemonlaw@ag.ny.gov.
2. Complete the form with your vehicle information, repair history, and description of the defect.
3. Submit the form to the Lemon Law Arbitration Unit by email or by mail at 28 Liberty Street, 15th Floor, New York, NY 10005. Do not send the filing fee or your supporting documents yet.
4. The AG's office reviews your eligibility and either accepts the claim or returns the form with the reason for rejection.
5. If the claim is accepted, the AG forwards it to NYSDRA, which then asks you for the $250 filing fee and your supporting documents. NYSDRA begins processing once the fee arrives.
6. Your case is assigned to a local arbitrator through a Community Dispute Resolution Center.
7. Both you and the manufacturer present evidence at a hearing.
8. The arbitrator issues a decision, usually within 45 days of the hearing. If the decision goes your way, the $250 filing fee is returned to you.

Manufacturer Defenses

Manufacturers can raise several defenses to challenge a lemon law claim. Knowing these defenses ahead of time helps you build a stronger case.

Used Car Lemon Law (GBS Section 198-b)

New York provides separate lemon law protections for used vehicle buyers under General Business Law Section 198-b. This law requires dealers to provide written warranties on qualifying used vehicles.

Eligibility Requirements

To qualify for Used Car Lemon Law protection, all of the following must be true:

• The vehicle was purchased or leased from a New York dealer (private sales are not covered)
• The purchase price or agreed lease value is at least $1,500
• The vehicle had fewer than 100,000 miles at the time of sale
• The vehicle is used primarily for personal, family, or household purposes
• The vehicle was sold or transferred after the earlier of 18,000 miles or 2 years from original delivery

Required Dealer Warranty

Dealers must provide a written warranty. The warranty duration depends on the vehicle's mileage at the time of sale, as outlined on the AG's Used Car Lemon Law fact sheet:

The warranty period or mileage limit, whichever comes first, determines the end of coverage.

Covered Components

The dealer warranty must cover repair or replacement of these specific parts at no cost to the buyer:

• Engine: All lubricated parts, water pump, fuel pump, manifolds, engine block, cylinder head, rotary engine housings, and flywheel
• Transmission: Transmission case, internal parts, and torque converter
• Drive axle: Front and rear drive axle housings, internal parts, axle shafts, propeller shafts, and universal joints
• Brakes: Master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines, fittings, and disc brake calipers
• Steering: Steering gear housing, all internal parts, power steering pump, valve body, piston, and rack
• Electrical: Alternator, generator, starter, and ignition system (excluding the battery)
• Radiator
• Front and rear suspension

Used Car Refund Process

If the dealer cannot repair a covered defect after three or more attempts, or if the vehicle has been out of service for 15 or more cumulative days within the warranty period, you may be entitled to a full refund of the purchase price. The dealer may refuse a refund only if the problem does not substantially impair the vehicle's value, or if the defect was caused by abuse, neglect, or unauthorized modification by the buyer.

If the dealer has established an arbitration procedure, you may need to go through that process before getting a refund. Alternatively, you can submit your claim to the Attorney General's arbitration program, which charges a $120 filing fee in used car cases and returns it if the arbitrator rules in your favor. The arbitrator must render a decision within 40 days of filing, and the dealer has 30 days from the mailing of the decision to comply.

Statute of Limitations and Key Deadlines

Acting promptly protects your rights and strengthens your case. Here are the critical deadlines:

• Report the defect: The defect must first be reported to the manufacturer, its agent, or an authorized dealer within 2 years of delivery or 18,000 miles, whichever comes first
• Lemon law deadline: Section 198-a(j) provides that any action brought under the New Car Lemon Law must be commenced within four years of the date of original delivery of the vehicle to the consumer. That four-year clock, not a longer general contract deadline, is the one that governs a lemon law claim
• Separate warranty claims: A breach of warranty claim under UCC Section 2-725 carries its own four-year limit, which runs from tender of delivery rather than from the date you discover the defect

File as soon as possible after your vehicle qualifies as a lemon. Delays can complicate your case and may increase the mileage offset deducted from your refund.

Proposed Legislative Changes (2025-2026)

Two bills introduced in the New York State Legislature would expand lemon law protections if enacted. Neither has been signed into law as of 2026.

Senate Bill S5597: Commercial Vehicle Coverage

S5597 would extend lemon law protections to vehicles purchased primarily for commercial or business purposes. Currently, only vehicles bought for personal use qualify. The bill would amend both Section 198-a and Section 198-b. The bill has passed the full Senate twice, most recently on February 9, 2026 (41-19), and is now pending in the Assembly Consumer Affairs and Protection Committee.

Senate Bill S8430: Updated Mileage and Time Limits

S8430 would increase the new car lemon law coverage window from 18,000 miles or 2 years to 36,000 miles or 3 years. The bill would also update the mileage deduction formula. It was referred to the Committee on Rules. If enacted, the changes would take effect one year after signing.

These bills reflect ongoing efforts to modernize New York's lemon law to match current vehicle technology and ownership patterns.

More New York Laws

• New York Car Accident Laws

Frequently Asked Questions

How many repair attempts trigger New York's Lemon Law?

Under the lemon law presumption, a vehicle may qualify after four or more repair attempts for the same substantial defect, or after the vehicle has been out of service for 30 or more cumulative calendar days for repairs. These conditions must occur within the first 2 years or 18,000 miles of ownership, whichever comes first.

Is the New York lemon law arbitration program free?

No. The program is administered by the New York State Dispute Resolution Association (NYSDRA) under contract with the Attorney General's office, and it charges a filing fee: $250 in new car cases and $120 in used car cases. NYSDRA requests the fee after the Attorney General's office accepts your form, and returns it if the arbitrator rules in your favor. General Business Law Section 198-a(k) conditions the program on payment of a prescribed filing fee, and the Lemon Law Bill of Rights printed in the statute warns that you may have to pay a fee for arbitration before an arbitrator approved by the Attorney General. The arbitrator's decision is binding on both you and the manufacturer, subject only to a limited right of appeal to court under CPLR Article 75.

Does New York's Lemon Law cover leased vehicles?

Yes. Leased vehicles used primarily for personal, family, or household purposes receive the same protections as purchased vehicles under the New York Lemon Law. If your leased vehicle qualifies as a lemon, you may receive a refund of all lease payments made, return of your security deposit, and termination of the lease without early termination penalties.

What is the mileage offset and how is it calculated?

The mileage offset is the amount a manufacturer may deduct from your refund, but only for miles driven beyond the first 12,000 miles. There is no deduction at all for the first 12,000 miles of use. The formula is: (Miles in Excess of 12,000 x Purchase Price) / 100,000. For example, if you paid $40,000 and the vehicle had 15,000 miles, only the 3,000 miles above 12,000 count, producing an offset of $1,200.

Does New York have a used car lemon law?

Yes. General Business Law Section 198-b requires New York dealers to provide a written warranty on used vehicles that cost at least $1,500 and have fewer than 100,000 miles at the time of sale. The warranty covers major components like the engine, transmission, brakes, and steering for 30 to 90 days depending on mileage. If the dealer cannot fix a covered defect after three attempts, or the vehicle is out of service for 15 or more cumulative days, you may be entitled to a full refund.