New York Lemon Laws

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Lemon Law Basics: New York Lemon Laws

Summary of New York Lemon Law

What vehicles are covered under New York lemon law?
New York lemon law applies to vehicles that are covered by a manufacturer's warranty and which are sold or registered in New York, or which were transferred to New York within the first two years of ownership or 18,000 miles. Motorcycles and off-road vehicles are excluded from coverage.

What problems are covered by New York lemon law?
New York lemon law stipulates that if a consumer reports a serious condition affecting a vehicle's use, value, or safety to the manufacturer within the first two years of possession or 18,000 miles, the nonconformity must be repaired at no cost. If the manufacturer refuses to make repairs within 7 days of receiving notification of the nonconformity or has had a reasonable opportunity to repair the nonconformity and the problem persists, the vehicle must be repurchased or replaced.

Under New York lemon law, the manufacturer is presumed to have had a reasonable chance to repair the vehicle after four unsuccessful attempts to repair the same problem, or thirty days when the vehicle was out of commission for repairs. If the vehicle is a motor home, the consumer must also notify the motor home manufacturer after three repair attempts or 21 days out of commission, and allow the manufacturer a final chance to repair the nonconformity.

Filing a claim under New York lemon law
Before a consumer can start a case in court under New York lemon law, he must first attempt to reach a resolution through the manufacturer's informal settlement board or through a state arbitration board. The claim must be filed within four years of possession of the vehicle.

What settlements are possible under New York lemon law?
If a vehicle is repurchased under New York lemon law, the manufacturer must pay a sum that includes the full purchase price of the vehicle and all government fees and charges such as tax, tags, and registration. A reasonable offset for the consumer's usage of the vehicle may be subtracted from this sum. The offset is calculated by dividing all miles over 12,000 on the vehicle by 100,000 and multiplying the result by the purchase price.

If a leased vehicle is repurchased under New York lemon law, the manufacturer must pay the lessor a sum that includes 105% of the actual purchase price, all fees related to the lease, installed options, and freight costs. Deposits and payments made by the lessee are subtracted from this sum. To the lessee, the manufacturer must pay a sum that includes all payments made to the lessor, credit for any trade-ins, and government charges like tax, tags, and registration. An amount can be subtracted from this total which includes a usage offset as defined above, an offset for any damage done to the vehicle, and service fees. Service fees include insurance paid by the lessor and interest received on payments.

If a vehicle is replaced under New York lemon law, the new vehicle must be comparable to the old, and no usage allowance can be levied.