Comprehensive guide to pursuing lemon law claims under N.Y. Gen. Bus. Law Section 198-a (new cars) and Section 198-b (used cars). Covers the New Car Lemon Law Arbitration Program, repair attempt thresholds, and sample demand language.
New York Lemon Law Overview
New York has some of the strongest lemon law protections in the country for both new and used car buyers. If you purchased a vehicle with serious defects that cannot be repaired after a reasonable number of attempts, you may be entitled to a refund or replacement vehicle.
New York Lemon Law Framework
New York has two separate lemon laws:
New Car Lemon Law (GBL Section 198-a): Covers new vehicles purchased or leased in New York with defects reported within 2 years or 18,000 miles
Used Car Lemon Law (GBL Section 198-b): Requires dealers to provide warranty on used vehicles based on mileage at purchase
Both laws provide significant protections beyond federal warranty law (Magnuson-Moss Warranty Act).
Qualifying Vehicles
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New Vehicles (Section 198-a)
Passenger cars, motorcycles, and certain trucks/vans purchased or leased in NY for primarily personal, family, or household use.
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Used Vehicles (Section 198-b)
Used vehicles with less than 100,000 miles purchased from a dealer for more than $1,500. Private sales are not covered.
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Excluded Vehicles
Vehicles used primarily for business, motorcycles (used car law only), off-road vehicles, vehicles converted to motorhomes, and living quarters.
What Makes a Vehicle a "Lemon"?
A vehicle is presumed to be a lemon under NY law if it has a defect that:
Substantially impairs the use, value, or safety of the vehicle
Cannot be repaired after a reasonable number of attempts (typically 4+ attempts for the same defect, or 30+ days out of service)
Is not caused by abuse, neglect, unauthorized modifications, or accidents
Key Statutes
Statute
Coverage
Key Provisions
GBL Section 198-a
New Car Lemon Law
Refund/replacement; 4 repair attempts or 30 days out of service; attorney fees
GBL Section 198-b
Used Car Lemon Law
Mandatory dealer warranty; 90 days/4,000 mi or 60 days/3,000 mi based on mileage
6 NYCRR Part 300
Lemon Law Regulations
Attorney General regulations implementing the lemon law
Vehicle & Traffic Law Section 417
Odometer Disclosure
Odometer fraud protections
Critical Deadlines
New Car Lemon Law protections: Defects must be reported within 2 years or 18,000 miles (whichever comes first)
Arbitration filing: Must file within 4 years of original delivery date
Lawsuit: 6-year statute of limitations for breach of warranty under CPLR Section 213
Keep all records: Repair orders, communications, and documentation of each repair attempt
New York New Car Lemon Law (GBL Section 198-a)
The New York New Car Lemon Law provides powerful protections for consumers who purchase or lease defective new vehicles. If your vehicle qualifies, the manufacturer must provide a refund or replacement at your choice.
Coverage Requirements
To qualify for New Car Lemon Law protection:
New vehicle: Purchased or leased new in New York
Primary use: Personal, family, or household purposes (not primarily business)
Reporting period: Defect must be reported to manufacturer/dealer within 2 years or 18,000 miles (whichever comes first)
Vehicle types: Passenger cars, motorcycles, and certain vans/trucks used primarily for personal purposes
The Lemon Law Presumption
Under GBL Section 198-a(c), a vehicle is presumed to be a lemon if, within the first 2 years or 18,000 miles:
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Four or More Repair Attempts
The same defect has been subject to repair 4 or more times by the manufacturer/dealer, but the defect continues to exist.
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30 or More Days Out of Service
The vehicle has been out of service for repair for a total of 30 or more days (need not be consecutive).
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Safety Defects
For defects affecting braking or steering that are likely to cause death or serious injury, only 2 repair attempts may be required.
Final Repair Opportunity
Before you can pursue a lemon law claim, you must give the manufacturer one final opportunity to repair the defect. This is done by sending written notice by certified mail to the manufacturer (and dealer if you choose) specifying:
The defect or condition
All prior repair attempts
Demand for a final repair attempt
The manufacturer then has 20 days to attempt a final repair. If the defect is not fixed, you can proceed with your lemon law claim.
Remedies Under the New Car Lemon Law
Consumer's Choice: Refund or Replacement
If your vehicle qualifies as a lemon, you are entitled to your choice of:
Option 1: Full Refund
Full purchase price (including trade-in value)
All taxes, fees, and registration costs
Finance charges (if applicable)
All collateral charges (towing, rental, etc.)
MINUS a reasonable allowance for use (based on mileage at first repair attempt)
Option 2: Comparable Replacement Vehicle
A new vehicle of comparable value
Same or equivalent features
Manufacturer pays all associated costs
Reasonable Use Allowance Calculation
The manufacturer may deduct a "reasonable use allowance" based on miles driven before the first repair attempt. The formula is:
Use Allowance Formula
Use Allowance = (Purchase Price x Miles at First Repair) / 100,000
Example: If you bought a $40,000 vehicle and brought it in for the first repair at 2,500 miles:
$40,000 x 2,500 / 100,000 = $1,000 use allowance
Your refund would be $40,000 - $1,000 = $39,000 (plus taxes, fees, and finance charges).
Attorney Fees
Under GBL Section 198-a(k), if you prevail in a lemon law claim and were represented by an attorney, the manufacturer must pay your reasonable attorney fees. This means you can hire an attorney at no out-of-pocket cost - the manufacturer pays.
This fee-shifting provision makes it economically viable to pursue lemon law claims with professional legal help.
New York Used Car Lemon Law (GBL Section 198-b)
New York's Used Car Lemon Law requires dealers to provide written warranties on used vehicles, giving buyers important protections not available in most other states.
Coverage Requirements
The Used Car Lemon Law applies to:
Used vehicles with less than 100,000 miles at purchase
Purchased from a dealer (not private sales)
Purchase price over $1,500
Primarily personal use (not primarily business)
Mandatory Warranty Coverage
The warranty period depends on the vehicle's mileage at time of purchase:
Mileage at Purchase
Warranty Period
Coverage
36,000 - 79,999 miles
90 days or 4,000 miles (whichever first)
Major components listed in statute
80,000 - 99,999 miles
60 days or 3,000 miles (whichever first)
Major components listed in statute
100,000+ miles
No mandatory warranty
Defects must be disclosed; sold "as-is"
Covered Components
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Engine
All lubricated parts, water pump, fuel pump, manifolds, engine block, cylinder heads, rotary engine housings.
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Transmission
Transmission case and all internal parts, torque converter, transfer case.
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Drive Axle
Front and rear drive axle housings and all internal parts, axle shafts, propeller shafts, universal joints.
Steering
Steering gear housing and all internal parts, power steering pump, valve body, piston, rack.
Deductible Limits
The dealer may charge a deductible of up to $100 per repair visit, but:
The dealer must disclose the deductible amount in writing before sale
Total deductibles during warranty period are capped at $200
No deductible may be charged if repair is not completed
Consumer Remedies
If Dealer Fails to Repair
If the dealer fails to repair a covered defect within the warranty period, you may be entitled to:
Refund of purchase price (minus reasonable use allowance)
Repair at dealer's expense
Reasonable attorney fees if you prevail in litigation
You must give the dealer at least one opportunity to repair the defect and at least 10 days' written notice before filing a lawsuit.
Required Disclosures
Dealers must provide buyers with a written notice containing:
A complete description of all warranty coverage
The deductible amount (if any)
A clear statement of consumer's rights
NYS Attorney General's Used Car Lemon Law Bill of Rights
Failure to provide these disclosures may strengthen your claim against the dealer.
New Car Lemon Law Arbitration Program
The New York Attorney General's New Car Lemon Law Arbitration Program provides a free, fast alternative to litigation for new car lemon law disputes. This is often the best first step for consumers seeking a refund or replacement.
Program Overview
Free: No filing fees or costs to consumers
Fast: Decisions typically within 45 days of hearing
Informal: Hearings are less formal than court proceedings
Binding on manufacturer: If you win, the manufacturer must comply
Non-binding on consumer: If you lose or are unsatisfied, you can still file a lawsuit
Eligibility Requirements
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Filing Deadline
You must file within 4 years of the original delivery date of the vehicle.
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Prior Notice Required
You must have already sent the manufacturer written notice demanding a final repair opportunity and either: (a) the repair failed, or (b) the manufacturer did not respond within 20 days.
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Qualifying Vehicle
Vehicle must be covered by New Car Lemon Law (new purchase/lease, primarily personal use, defect reported within 2 years/18,000 miles).
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No Pending Litigation
You cannot file for arbitration if you have already filed a lawsuit on the same claim.
How to File
Filing Process
Complete Request Form: Download the "Request for Arbitration" form from the NY Attorney General's website (ag.ny.gov)
Gather Documents:
Copy of purchase/lease agreement
All repair orders and invoices
Copy of your written notice to manufacturer
Photos documenting defects (if applicable)
Submit Filing: Mail completed form and documents to:
NYS Attorney General's Office
Lemon Law Arbitration
120 Broadway
New York, NY 10271
Attend Hearing: Hearings are held at locations throughout New York State. You may request a hearing near your home.
Possible Arbitration Outcomes
Refund: Full purchase price minus reasonable use allowance
Replacement: Manufacturer must provide comparable new vehicle
Additional Repairs: Manufacturer must make specified repairs
Extended Warranty: Manufacturer must provide additional warranty coverage
Denial: If arbitrator finds vehicle does not qualify as a lemon
Manufacturer Compliance
If you win arbitration:
The manufacturer must comply within 30 days of the decision
If the manufacturer fails to comply, you can file a motion to confirm the arbitration award in court
Confirmed awards can be enforced like court judgments
You may be entitled to additional damages for non-compliance
Arbitration vs. Lawsuit
Factor
Arbitration
Lawsuit
Cost
Free
Filing fees, court costs, attorney fees (recoverable if you win)
Time
45 days typical
1-2+ years
Formality
Informal hearing
Formal court procedures
Attorney Needed
Optional (not required)
Strongly recommended
Binding
On manufacturer only
On both parties
Appeal Rights
Consumer can reject and file lawsuit
Standard appellate rights
New York Lemon Law Demand Letter Templates
Use these professionally drafted templates as starting points for your lemon law demands. Customize with your specific vehicle information, defects, and repair history.
Notice to Manufacturer (Final Repair Opportunity)
[Your Name]
[Your Address]
[City, State ZIP]
[Email]
[Phone]
[Date]
[Manufacturer Name]
Consumer Affairs / Lemon Law Department
[Manufacturer Address]
Via Certified Mail, Return Receipt Requested
RE: NOTICE PURSUANT TO N.Y. GEN. BUS. LAW SECTION 198-a
DEMAND FOR FINAL REPAIR OPPORTUNITY
Vehicle: [Year Make Model]
VIN: [VIN Number]
Purchase Date: [Date]
Current Mileage: [Mileage]
Dear Sir or Madam:
This letter constitutes formal notice pursuant to N.Y. Gen. Bus. Law Section 198-a (the New York Lemon Law) that my vehicle, identified above, has a defect that substantially impairs its use, value, and safety, and that your authorized dealers have been unable to repair this defect after multiple attempts.
VEHICLE PURCHASE INFORMATION
I purchased/leased the above vehicle on [Date] from [Dealer Name and Address] for a total price of $[Amount]. The vehicle had [X] miles at delivery.
DEFECT DESCRIPTION
The vehicle has the following defect that substantially impairs its use, value, and safety:
[Describe the defect in detail - e.g., "The transmission hesitates, lurches, and fails to shift properly between gears. This occurs during normal driving at highway speeds, creating a safety hazard when the vehicle suddenly loses power or lurches unexpectedly."]
REPAIR HISTORY
I have brought the vehicle to your authorized dealer(s) for repair of this defect on the following occasions:
1. [Date]: [Dealer Name], [City, NY] - Mileage: [X] - Repair attempted: [Description] - Days out of service: [X]
2. [Date]: [Dealer Name], [City, NY] - Mileage: [X] - Repair attempted: [Description] - Days out of service: [X]
3. [Date]: [Dealer Name], [City, NY] - Mileage: [X] - Repair attempted: [Description] - Days out of service: [X]
4. [Date]: [Dealer Name], [City, NY] - Mileage: [X] - Repair attempted: [Description] - Days out of service: [X]
Despite [4+] repair attempts, the defect persists. The vehicle has been out of service for repairs for a total of [X] days.
LEMON LAW PRESUMPTION
Under N.Y. Gen. Bus. Law Section 198-a(c), this vehicle is presumed to be a lemon because:
[Check applicable box:]
[ ] The same defect has been subject to repair 4 or more times but continues to exist
[ ] The vehicle has been out of service for repair for 30 or more days total
[ ] A safety defect affecting brakes or steering has been subject to 2+ repair attempts
DEMAND FOR FINAL REPAIR OPPORTUNITY
Pursuant to N.Y. Gen. Bus. Law Section 198-a(b)(3), I hereby demand that you make one final attempt to repair this defect. You have 20 days from receipt of this notice to schedule and complete this final repair attempt.
Please contact me immediately at the phone number or email address above to schedule this repair.
CONSEQUENCES IF DEFECT NOT REPAIRED
If this final repair attempt is unsuccessful, I will pursue all remedies available under the New York Lemon Law, including:
1. Filing for arbitration with the NYS Attorney General's Lemon Law Arbitration Program
2. Filing a civil action for refund or replacement
3. Recovery of attorney fees pursuant to GBL Section 198-a(k)
The 4-year deadline for arbitration filing and 6-year statute of limitations for lawsuit preserve my right to pursue these remedies.
Sincerely,
[Your Signature]
[Your Printed Name]
Enclosures:
- Copy of purchase/lease agreement
- All repair orders
- Photos documenting defect (if applicable)
Demand Letter to Manufacturer (After Failed Final Repair)
[Date]
[Manufacturer Name]
Consumer Affairs / Lemon Law Department
[Address]
Via Certified Mail, Return Receipt Requested
RE: DEMAND FOR REFUND UNDER N.Y. GEN. BUS. LAW SECTION 198-a
Vehicle: [Year Make Model]
VIN: [VIN Number]
Dear Sir or Madam:
On [Date], I sent you notice pursuant to N.Y. Gen. Bus. Law Section 198-a demanding a final opportunity to repair the [describe defect] in my vehicle. [Choose one:]
[ ] The repair attempted on [Date] was unsuccessful and the defect persists.
[ ] You failed to respond to my notice within 20 days.
[ ] You acknowledged the defect cannot be repaired.
LEMON LAW QUALIFICATION
This vehicle qualifies as a lemon under New York law. The defect:
- Substantially impairs the use, value, and safety of the vehicle
- Was reported within the first 2 years / 18,000 miles
- Has been subject to [4+] repair attempts / [30+] days out of service
- Continues to exist despite reasonable repair attempts
DEMAND FOR REFUND
Pursuant to N.Y. Gen. Bus. Law Section 198-a, I demand a full refund calculated as follows:
Purchase price: $[Amount]
Sales tax: $[Amount]
Registration and title fees: $[Amount]
Finance charges (if applicable): $[Amount]
Collateral charges (rental, towing): $[Amount]
__________
Subtotal: $[Amount]
Less: Reasonable use allowance
([Purchase price] x [Miles at first repair] / 100,000)
= $[Amount] x [X] / 100,000 = -$[Amount]
__________
TOTAL REFUND DUE: $[Amount]
DEADLINE
This demand must be satisfied within 30 days of receipt. If you fail to provide the refund demanded, I will:
1. File for arbitration with the NYS Attorney General's Lemon Law Arbitration Program
2. File suit in New York Supreme Court
3. Seek recovery of attorney fees under GBL Section 198-a(k)
Please contact me immediately to arrange for vehicle return and refund payment.
Sincerely,
[Your Name]
[Contact Information]
Used Car Lemon Law Demand to Dealer
[Date]
[Dealer Name]
[Dealer Address]
Via Certified Mail, Return Receipt Requested
RE: DEMAND UNDER N.Y. GEN. BUS. LAW SECTION 198-b (USED CAR LEMON LAW)
Vehicle: [Year Make Model]
VIN: [VIN Number]
Purchase Date: [Date]
Mileage at Purchase: [Mileage]
Current Mileage: [Mileage]
Dear [Dealer Name]:
I purchased the above vehicle from your dealership on [Date] for $[Amount]. The vehicle had [X] miles at the time of purchase.
MANDATORY WARRANTY COVERAGE
Under N.Y. Gen. Bus. Law Section 198-b, you were required to provide a written warranty on this vehicle covering major components for [90 days / 4,000 miles OR 60 days / 3,000 miles] because the vehicle had [X] miles at purchase.
DEFECT AND REPAIR ATTEMPTS
Within the warranty period, I discovered the following covered defect:
[Describe defect - e.g., "The transmission fails to shift properly and makes grinding noises. This affects the transmission case and internal parts, which are covered components under the Used Car Lemon Law."]
I brought the vehicle to your dealership for repair on [Date(s)]. The defect has not been properly repaired.
COVERED COMPONENT
The defective [transmission / engine / drive axle / brakes / steering] is a covered component under GBL Section 198-b(b). You are required to repair this defect at no cost to me (except for the disclosed deductible of $[Amount]).
DEMAND
I demand that you:
1. Immediately schedule repair of the [defect] at no cost beyond the $[100] deductible already disclosed
2. Complete the repair within 10 business days
3. Provide me with written documentation of all repairs performed
If you fail to repair this defect, I will be entitled to a refund of the purchase price under GBL Section 198-b(d), plus reasonable attorney fees.
Please contact me within 5 business days to schedule the repair.
Sincerely,
[Your Name]
[Contact Information]
Enclosures:
- Copy of purchase agreement
- Copy of warranty disclosure
- Repair orders to date
Attorney Services for New York Lemon Law Claims
Lemon law cases against major auto manufacturers require knowledge of the law, experience with manufacturer tactics, and the ability to pursue claims through arbitration or litigation if necessary.
Fee Options
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Demand Letter Package
$450
Flat fee for complete demand package including notice to manufacturer, demand letter, and initial negotiation support
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Hourly Consultation
$240/hr
For case evaluation, strategy sessions, arbitration preparation, or limited scope representation
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Contingency Fee
33-40%
No fee unless you recover. Under GBL 198-a(k), manufacturer pays attorney fees if you win - often resulting in no cost to you.
What I Handle in Lemon Law Cases
Case evaluation: Analyzing repair history to determine if your vehicle qualifies under New York law
Manufacturer communications: Drafting and sending required notices and demands
Arbitration representation: Representing you at NY Attorney General arbitration hearings
Litigation: Filing suit in New York Supreme Court if arbitration is unsuccessful or inappropriate
Settlement negotiation: Negotiating refunds, replacements, and cash settlements
Used car claims: Pursuing dealers for Used Car Lemon Law violations
Attorney Fee Shifting Under GBL 198-a(k)
New York's New Car Lemon Law requires manufacturers to pay the consumer's reasonable attorney fees if the consumer prevails. This means:
Hiring an attorney may cost you nothing out of pocket
The manufacturer pays your attorney fees on top of your refund/replacement
This provision encourages manufacturers to settle rather than face fee liability
Many lemon law cases settle for full relief plus attorney fees
Stuck with a Lemon in New York?
If your new or used vehicle has recurring defects that cannot be fixed, you may be entitled to a full refund or replacement. Contact me to evaluate your lemon law rights.
The New York New Car Lemon Law (N.Y. Gen. Bus. Law Section 198-a) protects consumers who purchase or lease new vehicles with substantial defects that cannot be repaired after a reasonable number of attempts.
If your vehicle qualifies (4+ repair attempts or 30+ days out of service for the same defect within 2 years/18,000 miles), you are entitled to a refund or replacement.
Yes. N.Y. Gen. Bus. Law Section 198-b requires dealers to provide written warranties on used vehicles:
90 days/4,000 miles for vehicles with 36,000-79,999 miles at purchase
60 days/3,000 miles for vehicles with 80,000-99,999 miles
No mandatory warranty for 100,000+ miles
The NY Attorney General's program provides free arbitration for lemon law disputes. You must file within 4 years of delivery. Decisions are binding on manufacturers but not on consumers - you can reject the decision and file a lawsuit instead.
Under NY law, a vehicle is presumed to be a lemon if:
The same defect has been subject to 4+ repair attempts but still exists; OR
The vehicle has been out of service for 30+ total days for repairs
For safety defects (brakes/steering), only 2 repair attempts may be required
You are entitled to your choice of:
Full refund: Purchase price plus taxes, fees, and finance charges, minus reasonable use allowance
Replacement: Comparable new vehicle
Plus: manufacturer pays your attorney fees if you prevail with an attorney.
Arbitration: Must file within 4 years of original delivery date.
Lawsuit: 6-year statute of limitations under CPLR Section 213.
However, the lemon law presumptions only apply to defects reported within the first 2 years/18,000 miles.