New York Lemon Law: Complete Guide for 2026

Last verified: February 2026

Key Points

Primary Law: New York Lemon Law (General Business Law Article 11-A, Sections 198-a to 198-c)
Coverage: New vehicles purchased or leased in New York with remaining manufacturer warranty
Presumption: 4+ repair attempts for the same defect OR 30+ days out of service within 2 years/18,000 miles
Remedies: Full refund or comparable replacement vehicle at consumer’s choice
Used Vehicles: Separate Used Car Lemon Law covers vehicles under $40,000 or less than 100,000 miles
Arbitration: Free state-administered arbitration program through the Attorney General’s Office

Quick Penalties Overview

Violation Type	Consumer Remedy	Additional Damages
Failure to repair after reasonable attempts	Refund or replacement vehicle	Attorney fees if litigation required
Manufacturer refuses to honor warranty	Full purchase price refund	Court costs and legal fees
Failure to disclose lemon buyback status	Rescission of sale	Treble damages possible under consumer protection laws

📑 Table of Contents (click to expand)

New York Lemon Law Overview
What Vehicles Are Covered
New York’s Lemon Law Presumption
Consumer Remedies: Refund vs. Replacement
How to File a Lemon Law Claim
State Arbitration Program
Manufacturer Defenses
Used Vehicle Protections
Statute of Limitations
Frequently Asked Questions
Resources and Legal Help

New York Lemon Law Overview

New York’s Lemon Law, codified in General Business Law Article 11-A, Sections 198-a through 198-c, provides robust protection for consumers who purchase or lease defective vehicles. First enacted in 1983, the New York Lemon Law was one of the earliest and most comprehensive lemon laws in the nation, serving as a model for many other states.

The law requires manufacturers to repair vehicles that have substantial defects affecting the use, value, or safety of the vehicle. If the manufacturer cannot repair the vehicle after a reasonable number of attempts, the consumer is entitled to either a full refund or a replacement vehicle. New York also offers a unique benefit: a free, state-administered arbitration program through the Attorney General’s Office that provides consumers with an accessible path to resolve disputes without litigation.

New York law also includes a separate Used Car Lemon Law that extends protection to buyers of used vehicles, making New York one of the most consumer-friendly states in the nation for vehicle purchases.

What Vehicles Are Covered

The New York Lemon Law covers a broad range of vehicles, but specific requirements must be met for protection to apply.

New Vehicle Lemon Law Coverage

New passenger cars: Sedans, coupes, hatchbacks, and similar vehicles
Trucks: Pickup trucks used primarily for personal purposes
Vans: Including minivans and passenger vans
Motorcycles: Street-legal motorcycles with manufacturer warranties
Motorhomes: The chassis and drive train components (living quarters may have separate protections)
Leased vehicles: Vehicles leased for personal, family, or household purposes
Demonstrator vehicles: Demo vehicles sold as new with remaining warranty

Vehicles Not Covered by the New Car Lemon Law

Vehicles purchased primarily for commercial or business purposes
Off-road vehicles not designed for highway use
Vehicles with a gross vehicle weight rating over 10,000 pounds
The living portion of motorhomes
Vehicles sold “as is” without any warranty

New York’s Lemon Law Presumption

Under General Business Law 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.

The Lemon Law Presumption Applies When:

Condition	Requirement	Details
Repair Attempts (Same Problem)	4 or more attempts	Same defect must substantially impair use, value, or safety
Safety Defect Repairs	1 or more attempts	For defects likely to cause death or serious bodily injury (if defect remains unfixed)
Days Out of Service	30 or more cumulative calendar days	Vehicle unavailable due to repair attempts for covered defects
Timeframe	Within 2 years or 18,000 miles	Whichever comes first from date of delivery

Important: The presumption shifts the burden of proof to the manufacturer to demonstrate that the vehicle does not qualify as a lemon. However, even if the presumption does not apply, consumers may still pursue claims if they can prove the manufacturer failed to repair a substantial defect.

What Qualifies as a “Substantial” Defect?

A defect is considered substantial if it impairs the vehicle’s use, value, or safety. Examples of substantial defects include:

Engine or transmission failures that affect drivability
Brake system malfunctions that create safety hazards
Steering problems that affect vehicle control
Electrical system failures affecting critical components
Airbag or safety restraint system defects
Persistent warning lights indicating serious mechanical issues
Water leaks that cause interior damage
Defective heating or air conditioning systems

Minor issues like squeaks, rattles, or purely cosmetic defects typically do not qualify unless they significantly affect the vehicle’s value or the consumer’s ability to use it.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under New York law, the consumer has the right to choose between two remedies: a full refund or a comparable replacement vehicle.

Option 1: Full Refund (Buyback)

The manufacturer must refund:

Full purchase price: Including the contract price, sales tax, and delivery charges
License and registration fees: All DMV costs associated with the vehicle
Finance charges: Interest and fees paid on the loan
Incidental costs: Towing expenses, rental car costs, and other reasonable expenses incurred due to the defect
Loan payoff: Direct payment to the lender to satisfy the loan balance

Mileage Offset: The manufacturer may deduct a reasonable amount for the miles driven before the first repair attempt. New York uses this formula:

Mileage Offset = (Purchase Price x Miles at First Repair) / 100,000

Option 2: 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
Covered by a full manufacturer warranty

How to File a Lemon Law Claim in New York

Filing a successful lemon law claim in New York requires proper documentation and following the correct procedures.

Step 1: Document All Repairs and Communications

Keep copies of all repair orders and invoices
Record the dates your vehicle was brought in for service
Document the symptoms and problems you experienced
Save all written correspondence with the dealer and manufacturer
Take photographs or videos of defects when possible

Step 2: Notify the Manufacturer

Provide written notice to the manufacturer describing the defect and requesting repair. Send this notice via certified mail with return receipt requested. Include:

Your name and contact information
Vehicle identification (year, make, model, VIN)
Description of the defect or nonconformity
Repair history summary

Step 3: Allow Final Repair Opportunity

The manufacturer is entitled to a final opportunity to repair the vehicle. If the defect persists after this attempt, proceed with your claim.

Step 4: Choose Your Path: Arbitration or Litigation

You may either file for free arbitration through the state program or pursue the matter in court. Most consumers find arbitration faster and more cost-effective.

State Arbitration Program

New York offers one of the best consumer arbitration programs in the country through the Attorney General’s Office. This free program provides an alternative to costly litigation.

Advantages of the State Arbitration Program

No cost: The program is free to consumers
Binding on manufacturer: If you win, the manufacturer must comply
Consumer choice: If you lose, you can still pursue litigation
Fast resolution: Cases are typically resolved within 60 days
Local hearing: Hearings are conducted through Community Dispute Resolution Centers in all 62 counties

How to Apply for Arbitration

Contact the Attorney General’s Office to request an application
Complete the application with your vehicle and repair information
The AG’s office will review your eligibility
If eligible, your case is assigned to a local arbitrator
Both parties present evidence at the hearing
The arbitrator issues a decision, usually within 45 days

Manufacturer Defenses

Manufacturers may raise several defenses to avoid lemon law liability. Understanding these defenses helps you build a stronger case.

Common Manufacturer Defenses

Defense	Manufacturer’s Argument	Consumer’s Counter
Owner abuse or neglect	Defect caused by consumer misuse	Provide maintenance records showing proper care
Unauthorized modifications	Aftermarket parts caused the problem	Show defect existed before modifications or is unrelated
Defect does not substantially impair	Problem is minor or cosmetic	Document how defect affects safety, use, or value
Insufficient repair attempts	Consumer did not allow enough attempts	Show repair history meets presumption requirements
Outside coverage period	Claim filed after 2 years or 18,000 miles	Verify first report was within coverage period

Used Vehicle Protections

New York provides separate lemon law protection for used vehicle buyers through the Used Car Lemon Law (General Business Law Section 198-b).

Used Car Lemon Law Coverage Requirements

Purchase price: Vehicle must cost $1,500 or more
Mileage limit: Vehicle must have less than 100,000 miles at time of sale
Seller type: Vehicle must be purchased from a dealer (not private party)
Purchase location: Vehicle must be purchased in New York

Required Dealer Warranty

Under the Used Car Lemon Law, dealers must provide a written warranty covering:

Vehicle Mileage at Sale	Warranty Duration	Warranty Mileage
Under 36,000 miles	90 days	4,000 miles
36,000 to 79,999 miles	60 days	3,000 miles
80,000 to 99,999 miles	30 days	1,000 miles

Components Covered

The used car warranty must cover the following components at minimum:

Engine and engine components
Transmission
Drive axle
Brakes
Radiator
Steering
Alternator, generator, starter, ignition system
Front and rear suspension

Statute of Limitations

Understanding the deadlines for filing a New York lemon law claim is critical to preserving your rights.

Key Deadlines

Report defect: The defect must first be reported within 2 years of delivery or 18,000 miles, whichever comes first
Arbitration filing: Request arbitration within 4 years of original delivery
Lawsuit filing: The general statute of limitations for contract claims in New York is 6 years

Tip: File your claim as soon as possible after the vehicle qualifies as a lemon. Delay can complicate your case and may result in additional mileage deductions from your refund.

Frequently Asked Questions

How many repair attempts are required under 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. Alternatively, if the vehicle has been out of service for 30 or more cumulative days for repairs, it may also qualify. These conditions must occur within the first 2 years or 18,000 miles of ownership.

Is the New York lemon law arbitration program really free?

Yes, the state-administered arbitration program is completely free to consumers. The program is administered by the New York State Dispute Resolution Association under contract with the Attorney General’s Office. There are no filing fees or costs to the consumer.

Can I reject the arbitration decision and sue instead?

Yes. If you are dissatisfied with the arbitration decision, you retain the right to pursue your claim in court. However, if the arbitrator rules in your favor, the manufacturer is bound by that decision. This “one-way binding” feature makes arbitration an attractive first step.

Does New York’s Lemon Law cover leased vehicles?

Yes, leased vehicles used primarily for personal, family, or household purposes are covered under New York’s Lemon Law. If your leased vehicle qualifies as a lemon, you may be entitled to a refund of all lease payments made, plus your security deposit and termination of the lease agreement.

What is the mileage offset, and how is it calculated?

The mileage offset is an amount the manufacturer may deduct from your refund to account for the miles you drove before the first repair attempt. It is calculated by multiplying the purchase price by the miles driven at first repair, then dividing by 100,000. For example, if you paid $35,000 and drove 3,000 miles before the first repair, the offset would be $1,050.

Are motorcycles covered under New York’s Lemon Law?

Yes, motorcycles purchased or leased in New York are covered by the Lemon Law if they come with a manufacturer’s warranty and are used primarily for personal purposes. The same repair attempt and days-out-of-service standards apply.