Used Vehicles Under New York Lemon Law
New York has TWO used-vehicle protection statutes: § 198-a (when within original warranty) and § 198-b (Used Car Lemon Law with mileage-tiered dealer warranty). One of the most consumer-friendly in the country.
New York provides two distinct statutory protections for used-vehicle buyers — making it one of the most comprehensive used-vehicle frameworks in the United States:
- New Car Lemon Law (§ 198-a) applies if the vehicle is still under the original manufacturer’s warranty AND within the 2-year / 18,000-mile window from original delivery.
- Used Car Lemon Law (§ 198-b) applies to all dealer-sold used vehicles with a mileage-tiered statutory warranty.
This dual coverage is unique to New York.
Coverage under § 198-a (within original warranty)
If you bought a used vehicle while the original manufacturer’s warranty is still in effect AND the vehicle is within 24 months of original delivery (and under 18,000 miles), § 198-a applies. The full New Car Lemon Law remedies — refund or replacement, § 198-a(l) attorney fees, § 349 damages — are available.
This is the strongest used-vehicle coverage.
Coverage under § 198-b (Used Car Lemon Law)
When the vehicle is past § 198-a’s window OR sold without original manufacturer warranty, § 198-b provides dealer-issued statutory warranties:
| Mileage at sale | Warranty period |
|---|---|
| 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 |
The dealer must provide written warranty terms at sale.
What’s covered under § 198-b
The statutory warranty covers:
- Engine (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)
- Fuel system (pump, injectors)
- Cooling system (water pump, radiator)
- Air conditioning (if originally equipped)
What’s NOT covered
- Maintenance items (oil, filters, fluids, plugs, bulbs).
- Wear items (tires, brake pads, belts, hoses).
- Cosmetic items (paint, interior, glass).
- Damage from accidents, modifications, misuse.
§ 198-b’s repair-attempt framework
- Three repair attempts for the same nonconformity within the warranty period; OR
- Continued substantial impairment after the third attempt.
Notice and opportunity to cure required.
Remedies under § 198-b
If the dealer fails to repair:
- Refund — purchase price minus reasonable use deduction.
- Replacement — comparable used vehicle.
- Reimbursement of incidental damages.
- Attorney fees under § 198-b(k) — statutory recovery.
Court action vs. arbitration
Section 198-b cases can be:
- Pursued in state court (typically small claims or supreme court).
- Arbitrated through the NY AG program if the dealer participates.
CPO vehicles
New York doesn’t have a CPO-specific statute. But CPO vehicles get:
- Manufacturer’s CPO warranty under Magnuson-Moss.
- § 349 misrepresentation claims if the CPO inspection was inadequate.
- § 198-a if within the original warranty AND the 2-year / 18,000-mile window.
- § 198-b dealer warranty.
What about “as-is” sales?
Dealers cannot disclaim the § 198-b statutory warranty for used vehicles within the mileage tiers. For vehicles over 100,000 miles, dealers can sell as-is, but § 349 still applies to misrepresentation.
Settlement values
Used Car Lemon Law refunds in NY 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 § 198-b(k) attorney fees paid by the dealer.
What you should do
- Determine your mileage tier at sale.
- Confirm the dealer-issued statutory warranty period.
- Pull all repair orders from your ownership.
- Send written notice to the dealer.
- Get a free case review — § 198-b cases settle reliably.
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