The New York Used Car Lemon Law (GBL § 198-b)

New York is one of the few states with a separate Used Car Lemon Law, codified at General Business Law § 198-b. It requires dealers selling used vehicles to provide statutory warranties based on the vehicle’s mileage at sale. This is a unique protection for used-vehicle buyers that no other major lemon-law state provides as comprehensively.

While the New Car Lemon Law (§ 198-a) is best known, § 198-b is often the more relevant statute for used-vehicle buyers and provides distinct remedies.

Who’s covered

GBL § 198-b applies when:

• A dealer sells a used motor vehicle in New York.
• The dealer is in the regular business of selling vehicles (i.e., a licensed dealer, not a private party).
• The vehicle has been used and titled previously.
• The vehicle is sold to a consumer for personal, family, or household use (some commercial exclusions).

The statute does not apply to:

• Private-party sales.
• Vehicles sold by leasing companies upon lease return (in some configurations).
• Vehicles sold “as-is” to a specific narrow category.

The mileage-tiered warranty

The statute requires dealers to provide a statutory warranty based on the vehicle’s mileage at sale. The warranty period and covered components vary by mileage tier:

Mileage at sale	Warranty period (whichever first)
Less than 36,001 miles	90 days or 4,000 miles
36,001 to 79,999 miles	60 days or 3,000 miles
80,000 to 100,000 miles	30 days or 1,000 miles
Over 100,000 miles	No statutory warranty (but other remedies may apply)

The dealer must provide written warranty terms at the time of sale.

What’s covered under the statutory warranty

The § 198-b warranty covers the following components:

• Engine — all internal lubricated parts.
• Transmission — internal lubricated parts.
• Drive axle (front and rear).
• Brakes — master cylinder, calipers, wheel cylinders, drums, rotors, lines.
• Steering — front and power-steering components.
• Suspension — major components.
• Electrical system — alternator, generator, starter, ignition (excluding parts in the maintenance category).
• Fuel system — fuel pump, fuel injectors.
• Cooling system — water pump, radiator (excluding hoses, thermostat).
• Air conditioning — if originally equipped.

What’s NOT covered

• Maintenance items — oil changes, filters, fluids, spark plugs, bulbs.
• Wear items — tires, brake pads, belts, hoses (typically).
• Cosmetic items — paint, interior, glass (unless related to a covered component).
• Damage from accidents, modifications, or misuse.
• Items covered by remaining manufacturer warranty.

The “reasonable number of attempts” framework

Section 198-b uses a similar framework to § 198-a:

• Three repair attempts for the same nonconformity within the warranty period; OR
• Continued substantial impairment after the third repair attempt.

The dealer must be given written notice and opportunity to cure.

Remedies under § 198-b

If the dealer fails to repair the defect, the consumer can recover:

• Refund — purchase price minus reasonable use deduction.
• Replacement — comparable used vehicle.
• Reimbursement of incidental damages.
• Attorney fees under GBL § 198-b(k) — statutory recovery for the prevailing consumer.

Note that § 198-b also provides statutory attorney-fee shifting, mirroring the New Car Lemon Law’s § 198-a(l).

Court action vs. arbitration for § 198-b

Section 198-b cases can be:

• Pursued in state court (typically small claims for lower-value cases, supreme court for larger).
• Arbitrated through the New York AG’s arbitration program if the dealer participates.

Court action provides the statutory attorney-fee shifting; AG arbitration is faster but doesn’t include attorney fees.

Important interaction with § 198-a

For used vehicles still under the original manufacturer’s warranty, the New Car Lemon Law (§ 198-a) may apply to the manufacturer (not just the dealer). Section 198-b applies to the dealer. Often both statutes apply simultaneously — § 198-a for the manufacturer’s warranty obligations, § 198-b for the dealer’s statutory warranty.

This dual coverage is distinctive to New York.

What about “as-is” sales?

Dealers cannot disclaim the § 198-b statutory warranty for used vehicles within the mileage tiers. The statute’s protections apply regardless of “as-is” language in the sales contract.

For vehicles over 100,000 miles (outside the statutory warranty tiers), dealers can sell as-is, but GBL § 349 still applies to misrepresentation.

Settlement values

Used Car Lemon Law refunds in New York typically range:

• Vehicles under 36,001 miles: $15,000-$40,000+
• Vehicles 36,001-79,999 miles: $10,000-$30,000+
• Vehicles 80,000-100,000 miles: $5,000-$20,000+

Plus attorney fees paid by the dealer under § 198-b(k).

What you should do

If you bought a used vehicle from a New York dealer and it’s defective:

1. Determine your mileage tier at sale.
2. Confirm the dealer-issued statutory warranty period.
3. Pull all repair orders from your ownership.
4. Send written notice to the dealer describing the defect.
5. Get a free case review — § 198-b cases settle reliably.

Bottom line

GBL § 198-b is one of the most consumer-friendly used-car protection statutes in the country. New York is one of the few states with this kind of mileage-tiered, statutorily-mandated used-car dealer warranty. Combined with the New Car Lemon Law (for any remaining manufacturer warranty) and § 349 (for misrepresentation), New York’s used-vehicle buyer protection framework is comprehensive.

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