New York's Used Car Lemon Law: The Dealer Warranty Explained
Which used cars are covered by GBL §198-b, how long the warranty lasts, what it covers and when you can get a refund.
New York gives buyers of many used cars a warranty by law, whatever the dealer's paperwork says. It is set out in General Business Law §198-b, known as the used car lemon law, and enforced by the Attorney General. This guide explains which cars it covers, how long the warranty lasts, and what to do if the car keeps breaking down. It is general information, not legal advice.
Which cars are covered
According to the New York Attorney General, the law covers a used car that you bought, leased or received from a New York dealer, and that, when you got it:
- already had more than 18,000 miles on it;
- was at least two years old;
- had a purchase price or lease value of at least $1,500; and
- had been driven less than 100,000 miles (NY Attorney General: used car lemon law).
Note the mileage on the odometer statement at the time of sale, because it decides both whether the law applies and how long the warranty lasts. Cars bought from a private seller are not covered, which is one reason to check that the seller is a registered dealer. The listings on this site show New York dealers with an unexpired DMV registration.
How long the warranty lasts
The dealer must give you a written warranty, and its length depends on the mileage when you bought the car:
- 18,001 to 36,000 miles: 90 days or 4,000 miles, whichever comes first;
- 36,001 to 79,999 miles: 60 days or 3,000 miles;
- 80,000 to 100,000 miles: 30 days or 1,000 miles.
What the warranty covers
The warranty covers the parts that make a car run and stop: the engine, transmission, drive axle, brakes and steering, plus other listed parts including the radiator, alternator, generator, starter and ignition system (but not the battery) (NY Attorney General). The dealer must repair covered defects free of charge during the warranty. Check the Attorney General's guide for the full list and any exclusions, such as damage caused by misuse or an accident.
When you are entitled to a refund
If the dealer cannot fix a covered problem, you may be entitled to a full refund. The Attorney General's guide describes two triggers: the problem is still there after the dealer has tried to fix it three or more times, or you cannot use the car for a total of 15 days or more while the dealer is fixing it. Keep every repair order, with dates and mileage, from the first visit.
Arbitration
If the dealer refuses a refund, you can ask for arbitration through the state's program, administered by the New York State Dispute Resolution Association. The Attorney General says the arbitrator's decision is binding on both parties. Some dealers have their own arbitration program, which you may use first. You can also go to court instead of arbitration.
The dealer's certificate
Separately from the lemon law, Vehicle and Traffic Law §417 requires a dealer selling a used car to give the buyer a written certificate, in the form the DMV prescribes, that the car "is in condition and repair to render, under normal use, satisfactory and adequate service upon the public highway at the time of delivery" (VTL §417). Keep that certificate with your purchase papers.
"As is" sales in New York
The federal Buyers Guide on a used car's window may say "As Is - No Dealer Warranty." For a car the law covers, the Attorney General is blunt: "No dealer can sell you a car 'as is.'" The statute also says any agreement that "waives, limits or disclaims" these rights "shall be void as contrary to public policy" (NY Attorney General). Cars outside the law's limits, such as cars with 100,000 miles or more, or priced under $1,500, can be sold "as is," so read the Buyers Guide and the contract carefully. Our guide to the FTC Buyers Guide explains the form.
What the warranty does not cover
The law lets a dealer exclude failures caused by collision, abuse, negligence, theft, vandalism, fire or other casualty, and a dealer may refuse a refund if the defect is the result of abuse, neglect or unreasonable modifications or alterations of the car. Routine maintenance items are your responsibility. If the dealer says a repair isn't covered, ask for the reason in writing.
Leased cars
The Attorney General's guide covers used cars that were leased from a dealer as well as those bought, as long as they meet the same age, mileage and value limits. If you lease a used car, keep the lease and every repair order just as a buyer would.
Steps to take if the car breaks down
- Tell the dealer in writing as soon as you notice the problem, within the warranty period.
- Let the dealer try to repair it, and get a written repair order each time.
- Keep a log of the days the car is in the shop.
- If the problem continues after three repair attempts or 15 days out of service, ask for a refund in writing.
- If the dealer refuses, apply for arbitration or contact the Attorney General's consumer helpline.
Using this directory
Each New York listing comes from the DMV's file of licensed facilities (data.ny.gov): the dealer type, facility number, when the dealer registration was first issued and when it expires, and any other DMV licences at the same facility. A registration is not a rating, and the file includes no complaints.
General information only, current as of the date above. The information on Car Dealer Check is not a safety rating or recommendation. Federal registration shows a company's authority and filings, not the quality of its service. Check the carrier's current status on the official FMCSA site and read your contract before you book. Rules and programs change; check the official sources linked in this guide.