What Is the Lemon Law in New York for Used Cars

New York extends lemon law protections to used vehicles through legislation codified as General Business Law § 198-b. Unlike many states that restrict lemon law coverage to new vehicles only, New York establishes a comprehensive warranty framework for used motor vehicles purchased from dealers. Used car lemon law protections apply to vehicles with mileage up to 100,000 miles at the time of sale or lease.

Coverage requires that dealers provide written warranties to consumers purchasing used vehicles valued above $1,500. Vehicles with eighteen thousand miles or fewer may qualify for new car lemon law protections. Used vehicles with higher mileage receive tiered warranty coverage based on odometer readings at purchase. Motorhomes and off-road vehicles are excluded from protection. The law applies exclusively to vehicles purchased from dealers; private sales receive no statutory warranty requirements under this statute.

What Protections Do Used Car Buyers Have in New York?

Used vehicle purchasers in New York benefit from multiple layers of statutory warranty protections, complemented by federal safeguards.

Dealer-Mandated Written Warranties

New York law requires dealers to furnish written warranties at the time of purchase or lease. Warranty duration and coverage vary by vehicle mileage at sale:

• Vehicles with 36,000 miles or fewer: minimum 90 days or 4,000 miles of coverage
• Vehicles exceeding 36,000 miles but under 80,000 miles: minimum 60 days or 3,000 miles
• Vehicles with 80,000 to 100,000 miles: minimum 30 days or 1,000 miles

Covered components include the engine, transmission, drive axle, brakes, radiator, steering, and electrical systems. Dealers must repair or reimburse consumers for repair costs at no additional charge. If the same defect remains unresolved after three repair attempts or if the vehicle is out of service for a cumulative fifteen or more days during the warranty period, consumers qualify for a full refund of purchase price or lease payments (minus reasonable allowances for damage and modifications) or a replacement vehicle.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act protects consumers when dealers provide express written warranties on used vehicles. Consumers may pursue civil remedies, including damages, replacement vehicles, purchase price refunds, and attorney fees for warranty breaches.

FTC Used Car Rule

The Federal Trade Commission's Used Car Rule mandates that dealers display a Buyer's Guide on every used vehicle before sale. Disclosures must identify warranty status, systems covered, repair cost allocation between dealer and consumer, and consumer rights to independent inspections and vehicle history verification.

Understanding "As Is" Sales in New York

New York's legal framework fundamentally restricts "as is" sales for used vehicles, providing substantial consumer protections that override dealer attempts to disclaim warranties. Any agreement that waives, limits, or disclaims the statutory warranty rights established by New York law is void as contrary to public policy. Dealers cannot lawfully sell used vehicles "as is" without warranty if the vehicle qualifies for coverage under the statute. If a dealer fails to provide the required written warranty, the law automatically deems the warranty as having been given regardless of contractual language.

Limited Dealer Disclosure Requirements

Dealers must deliver the written warranty and statutory notice to consumers at or before signing the sales or lease contract. Warranties may be set forth separately or as part of the sales contract. Dealers must provide a "Used Car Lemon Law Bill of Rights" notice printed in at least eight-point bold face type, which outlines consumer rights, repair obligations, refund eligibility criteria, and arbitration procedures.

Limited Exceptions to "As Is" Protection

Dealers may exclude coverage for defects resulting from lack of customary maintenance, collision, abuse, negligence, theft, vandalism, fire, or other casualty. Exclusions apply for altered or stopped odometers where actual mileage cannot be determined, for racing or competition use, for towing trailers or vehicles unless equipped by the manufacturer, and for vehicles rented or used to carry passengers for hire. Coverage limitations apply to normal wear conditions, such as valve and ring repairs for low compression or oil consumption.

Filing a Consumer Complaint

New York State Attorney General
Consumer Frauds Bureau
28 Liberty St, New York, NY 10005
Phone: (800) 771-7755
Official Website: Consumer Frauds Bureau