New York Lemon Laws: What To Do if Your New Vehicle Is a Dud

Not every New Yorker owns a car, but that doesn’t mean the millions who do should be out of luck if they purchase or lease a faulty vehicle. In most cases, the state’s lemon law can help salvage your investment. “People just don’t feel safe keeping problem vehicles,” says attorney Jacqueline Herritt of Kimmel & Silverman, whose lemon law work spans several states, including New York.

According to the law, if you’re a buyer or lessee experiencing repeated repair attempts of the same issue, or if your vehicle becomes unavailable to you for a significant amount of time for any number of issues, you have the right to return it to the manufacturer in exchange for a replacement vehicle or refund. The law also applies to motorcycles and used cars.

Conditions To Meet for a Lemon Law Claim

Keep in mind that not every repair or inconvenience counts. As Herritt explains, the issue must “substantially impair the use, value or safety of the vehicle.” Common defects typically involve severe water leaks or the engine, brakes or transmission. Problems stemming from abuse, neglect or unauthorized modifications to the car are excluded.

The vehicle should be primarily for personal use and registered in the state if the purchase or lease occurred in another location. The car must have been covered under a manufacturer’s warranty at the time of original delivery to the car dealer, and the issues must arise within 18,000 miles or 24 months, whichever comes first.

The dealer delivery date also starts the countdown on the statute of limitations, leaving consumers four years to bring a lemon claim against the maker. “New York differs from most states because that time starts to tick the day the vehicle lands on the dealer’s lot, not when you buy it,” says Herritt. “If the car’s been sitting on the lot for over a year, you’ve already lost that time.”

However, the delivery date isn’t always easy to determine. Herritt says the production date inside the door jamb sometimes provides a rough estimate for when a dealer might have taken possession.  

Time Period for Filing a Lemon Law Claim

Consumers should give the company a reasonable opportunity to remedy the problems, says Herritt: “At least four times back [for repairs] or 30 days out of service.” Because no one expects such extensive issues with newer vehicles, she recommends collecting plenty of documentation to support your allegations. Make sure the problems are documented on your invoice, and always keep a copy.

An attorney can walk you through the specifics and file the claim—all at no cost. “Every state lemon law contains a fee-shifting provision, which means manufacturers have to pay all the legal fees [for vehicle buybacks],” explains Herritt. “It sounds too good to be true, but it’s actually free to consumers.” 

Resolutions can come quickly in these disputes. Many attorneys establish prelitigation programs with car makers to settle the claim without going to court or filing a lawsuit. Herritt resolves most cases this way—sometimes within two weeks of receiving the appropriate documentation. She says others take about 60 to 90 days, with a case occasionally proceeding to litigation when the manufacturer denies liability or lowballs the compensation.

If the vehicle doesn’t meet the state’s lemon guidelines, recourse may be available via a federal law called the Magnuson-Moss Warranty Act. “The legal theory is that consumers didn’t get what they paid for, so this gives them a percentage of the purchase price back,” she says, adding that the consumer retains possession of the vehicle. For example, a $20,000 car may yield a refund of $2,000 to $4,000, depending on the circumstances.

Proceed With Caution in Lemon Law Cases

Despite the general belief that lemon buybacks are “taken to this big junkyard and smashed,” Herritt says they usually end up on the resale market. The car company should first perform the necessary repairs and issue a “branded” title to reflect the lemon status. A new buyer should also receive a written disclosure of the history.

Such vehicles are sold for discounted rates, making them appealing to some consumers. But Herritt urges caution. “We’ve caught one manufacturer that was not branding them,” she says. “And if they didn’t fix it before putting it back into the stream of commerce and you start having problems, you can sue them again if it was under the manufacturer’s warranty when you bought it.”

She adds, “If you get a little bit of money, it will still be enough to help you trade out of it.”

Find a Lemon Law Attorney

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