New York (“NY”) lemon laws are stated in NY Consolidated Law Service, General Business Law, Article 11A (Motor Vehicle Manufacturers). Under Section 198-a, nonconformity of a vehicle to the manufacturer’s express warranties is a defect or condition that substantially affects the market value of the vehicle. The period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either completion of 18,000 miles or two years of vehicle’s operation from the date of delivery, whichever happens earlier.
If the manufacturer is not able to repair the motor vehicle after reasonable attempts, the manufacture will have to replace the vehicle with a new comparable vehicle, or repurchase and refund the price of the vehicle to the buyer. When refunding, the manufacturer should pay full purchase price which include all charges, fees, and allowances relating to a vehicle trade. Additionally when refunding, the manufacturer can deduct an amount attributable to any damages on the vehicle which is not relating to ordinary use of vehicle, and an amount towards the general use of vehicle by the buyer before discovering the nonconformity. Deductible amount towards the general use of vehicle is calculated according to the mileage deduction formula and any use in excess of 12,000 miles will be deducted. Law requires the vehicle to be sold and registered in New York.
NY CLS Gen Bus § 198-a reads in part:
b) (1) If a new motor vehicle which is sold and registered in this state does not conform to all express warranties during the first eighteen thousand miles of operation or during the period of two years following the date of original delivery of the motor vehicle to such consumer, whichever is the earlier date, the consumer shall during such period report the nonconformity, defect or condition to the manufacturer, its agent or its authorized dealer. If the notification is received by the manufacturer’s agent or authorized dealer, the agent or dealer shall within seven days forward written notice thereof to the manufacturer by certified mail, return receipt requested, and shall include in such notice a statement indicating whether or not such repairs have been undertaken. The manufacturer, its agent or its authorized dealer shall correct said nonconformity, defect or condition at no charge to the consumer, notwithstanding the fact that such repairs are made after the expiration of such period of operation or such two year period.
(c) (1) If, within the period specified in subdivision (b) of this section, the manufacturer or its agents or authorized dealers are unable to repair or correct any defect or condition which substantially impairs the value of the motor vehicle to the consumer after a reasonable number of attempts, the manufacturer, at the option of the consumer, shall replace the motor vehicle with a comparable motor vehicle, or accept return of the vehicle from the consumer and refund to the consumer the full purchase price or, if applicable, the lease price and any trade-in allowance plus fees and charges….”