Lemon Law New York: New and Used Car Rights, Repair Limits and Arbitration
Short answerYes. New York has a lemon law for new cars under General Business Law § 198-a and for used cars under General Business Law § 198-b. If a covered defect is not fixed after a set number of repairs, you can seek a refund or replacement.
Last verified: October 27, 2026 against General Business Law §§ 198-a and 198-b and New York Attorney General lemon law guidance
Does New York have a lemon law? It does, and it covers both new and used vehicles. The lemon law New York drivers rely on is built into the General Business Law, and it gives you a path to a refund when a dealer or manufacturer cannot fix a serious defect.
This page explains what the NY state lemon law covers, how many repair tries it takes, how the free Attorney General arbitration program works, and what to do first. It is general information, not legal advice.
Key facts
- New cars: covered during the first 18,000 miles or 2 years from delivery, whichever comes first.
- New car trigger: the same defect repaired 4 or more times, or the car out of service 30 or more days in total.
- Used cars: a dealer warranty is required by law, and 3 repairs or 15 days out of service creates the presumption.
- Where to go: the Attorney General runs a lemon law arbitration program, with volunteer arbitrators in all 62 counties.
- Deadline to sue: 4 years from the original delivery of the vehicle.
- Pending change: Assembly Bill A8594-A would widen new car coverage, but it has not become law.
What is the lemon law in NY?
The New York lemon law is a set of consumer protections that force a seller to take back a vehicle it cannot repair. The new car rules are in General Business Law § 198-a, and the used car rules are in General Business Law § 198-b.
A car is a “lemon” when a defect substantially impairs its value and survives a reasonable number of repair attempts. The remedy is a refund or a comparable replacement, not just another repair.
Lemon law New York: what does it cover for a new car?
A new vehicle is covered if it has a manufacturer’s warranty and you bought, leased or transferred it in New York, or it is registered in the state. The defect must show up within the first 18,000 miles or 2 years from original delivery, whichever comes first.
The vehicle must be used mainly for personal, family or household purposes. A car bought to resell does not qualify. Under the Attorney General program, new motorcycles are also listed as eligible, along with motorhomes, wheelchairs and farm equipment.
How many repairs make a car a lemon in New York?
The law presumes the manufacturer had a fair chance to fix the car after 4 repair attempts for the same defect, or when the car is out of service for a total of 30 calendar days. The defect must still exist and must have been reported during the warranty period.
Repairs under warranty are free. If the dealer will not repair the problem within seven days, you can send written notice to the manufacturer by certified mail, and the manufacturer then has 20 days to begin repairs.
What does the used car lemon law cover?
A used car sold by a dealer comes with a legally required warranty if it is not too old or too cheap. The warranty length depends on the odometer reading when you buy, and our used car lemon law page covers those rules in detail.
| Mileage at sale | Minimum dealer warranty |
|---|---|
| 36,000 miles or less | 90 days or 4,000 miles, whichever comes first |
| More than 36,000 and under 80,000 miles | 60 days or 3,000 miles |
| 80,000 to 100,000 miles | 30 days or 1,000 miles |
The used car law does not apply to vehicles sold for less than $1,500, or to cars with more than 100,000 miles that the dealer disclosed in writing. The warranty must cover the engine, transmission, drive axle, brakes, radiator, steering and the charging and ignition system. The battery is not included.
For a used car, 3 repairs for the same defect or 15 days out of service creates the presumption. If the car is out of service a total of 45 days, you can claim the remedies regardless. Days spent waiting on parts that are not available do not count toward the 15.
What can you get under the lemon law: refund or replacement?
You can choose between a comparable replacement vehicle and a refund. The refund covers the price, including your trade-in allowance, plus fees such as title and registration. Loss of use, insurance premiums and finance charges are not included.
The seller can reduce a new car refund for use beyond 12,000 miles and for damage beyond normal wear. For financed cars, the refund is split between you and your lender. If you lease, the lease ends with no early termination penalty, and the refund is divided between you and the leasing company.
Sellers can fight a claim by arguing the defect does not substantially impair the vehicle’s value, or that abuse, neglect or unauthorized changes caused it.
How does lemon law arbitration work in New York?
If the manufacturer runs its own qualifying dispute program, the law says you must use it before seeking a refund or replacement. You can instead file with the Attorney General’s program, which is run by the New York State Dispute Resolution Association through Community Dispute Resolution Centers.
The process is faster than court. A hearing must be held within 35 days of filing, and the decision is generally due within 40 days. Most hearings are in person, although virtual hearings are possible, and formal court rules of evidence do not apply.
| Step | What happens |
|---|---|
| 1. Fill out the request | Complete the form for a new car, used car or leased car and email it to the Attorney General at nyag.lemonlaw@ag.ny.gov |
| 2. Attorney General review | The office decides whether your claim is eligible |
| 3. Fee | The administrator asks for a filing fee after acceptance. It is refunded if you withdraw within 7 business days, and the arbitrator can award it back if you win |
| 4. Hearing | Held within 35 days of filing, usually 1 to 2 hours |
| 5. Decision and payment | The seller has 30 days to comply, or pays $25 per business day, up to $500 |
The decision is final, subject only to court review under CPLR Article 75. You can ask for a modification within 20 days of receiving it, or start a court action to vacate or modify it within 90 days. Keep every work order, repair bill and email, because documents must reach the arbitrator at least three business days before the hearing.
New York City rules
New York City follows the state lemon law, so the same General Business Law § 198-a and § 198-b rights apply in all five boroughs. A car bought in Brooklyn, Queens or Buffalo gets the same protection, and arbitration is available through the Attorney General in every county.
Real New York scenarios
- New SUV in Rochester: the transmission fails and is fixed four times in 14 months. The same defect, 4 repairs, within 2 years and 18,000 miles, meets the new car presumption.
- Used sedan in Albany: a dealer sells a car with 50,000 miles for $9,000. The law requires at least a 60 day or 3,000 mile warranty on the engine, brakes and other listed parts.
- Leased car in Queens: a lessee reports a brake defect that keeps the car in the shop for 31 days. That meets the 30 day presumption, and a lemon finding ends the lease without a penalty.
Pending change: Assembly Bill A8594-A
Assembly Bill A8594-A would amend both sections. It would extend new car coverage from 18,000 miles and 2 years to 36,000 miles and 3 years, start the refund mileage offset after 24,000 miles instead of 12,000, and raise the late compliance fee to up to $250 per business day. As of October 27, 2026, it was on the Assembly floor calendar and had not passed either house.
Check before you rely on it: if the bill becomes law, it would take effect one year later. Until then, the 18,000 mile and 2 year limits still apply to new cars.
Myths and facts
- Myth: The lemon law only covers new cars. Fact: Used cars from dealers are covered under
General Business Law § 198-b. - Myth: You need a lawyer to file. Fact: You can file the arbitration request yourself with the Attorney General.
- Myth: A dealer can make you sign away your rights. Fact: Waivers of lemon law rights in a sales contract are void.
- Myth: You have unlimited time. Fact: A lawsuit must start within 4 years of original delivery, and coverage periods are short.
What should you do if your car may be a lemon?
- Report each defect in writing to the dealer or manufacturer during the warranty period.
- Get a written work order for every repair, even a free warranty repair.
- Count repair attempts and days out of service.
- Send certified notice to the manufacturer if the dealer refuses repairs.
- File the Attorney General arbitration request, or call 1-800-771-7755 with questions.
Frequently asked questions
Does New York have a lemon law?
Yes. General Business Law § 198-a covers new cars and § 198-b covers used cars bought from dealers. Both let you seek a refund or replacement when a substantial defect is not fixed after the required repair attempts.
What is the lemon law in NY state for a new car?
A new car is covered for its first 18,000 miles or 2 years. If the same defect is repaired 4 or more times, or the car is out of service 30 or more days, the law presumes the seller had a fair chance to fix it.
What is covered under the New York lemon law?
Cars, and under the Attorney General program also motorcycles, motorhomes, wheelchairs and farm equipment. The defect must substantially impair value. Damage from abuse, neglect or unauthorized changes is not covered.
What is the lemon law in NY for used cars?
A dealer must give a written warranty of 90 days or 4,000 miles for cars up to 36,000 miles, 60 days or 3,000 miles for cars under 80,000 miles, or 30 days or 1,000 miles up to 100,000 miles.
How long do you have to file a lemon law claim in NY?
A court action must be filed within 4 years of original delivery. The defect must also have appeared within the warranty or coverage period, so report problems quickly and keep dated records.
Does the lemon law cover leased cars?
Yes. If a leased car is found to be a lemon, the lease ends with no early termination penalty, and the refund is split between you and the leasing company. You can seek a sales tax refund using form AU-11.
Do you need a lawyer for lemon law arbitration?
No. You can file the Attorney General arbitration request on your own. A court may award attorney’s fees to a consumer who prevails in court, so many people still talk to a lawyer first.
What changed on this page
- October 27, 2026: first publication, checked against General Business Law §§ 198-a and 198-b, Attorney General arbitration guidance and Assembly Bill A8594-A. Spotted a mistake? See our corrections page and editorial policy.
If this affects you
For a defect claim, contact the New York Attorney General consumer frauds bureau, which runs the lemon law arbitration program. For a court case or a dispute over a lease, talk to a New York-licensed consumer protection attorney. The New York State Bar Association lawyer referral service can help you find one. For related topics, see driving and vehicles and money, business and consumer laws.
