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New York State Lemon Law: a Defective Vehicle Refund Case



Purchasing a new vehicle should be an exciting experience, but it can quickly become a significant source of stress when the car is plagued by persistent defects.

New York provides strong consumer protections through its lemon law, designed to help buyers who find themselves with a defective new car.

This case study illustrates how a consumer, with the right documentation and legal guidance, can successfully use the New York State Lemon Law to secure statutory relief for a malfunctioning vehicle.

Contents


1. New York State Lemon Law: Identifying a Defective Vehicle


The journey for our client, Mr. Chen, began with the purchase of a brand-new luxury sedan, a moment he had eagerly anticipated.

However, his excitement soon turned to frustration due to recurring electronic issues that the dealership could not resolve, presenting a potential claim under the New York State Lemon Law.



The Onset of Persistent Electronic Malfunctions


Shortly after driving his new sedan off the lot, Mr. Chen noticed a series of troubling electronic glitches.

One week, the check engine light would illuminate unexpectedly, and the next, a sensor failure warning would appear on the dashboard.

Eventually, the vehicle's central infotainment screen began shutting down intermittently, affecting navigation and climate control systems.
 

These were not minor inconveniences but defects that substantially impaired the value of the vehicle to the consumer, which is a key statutory standard under the New York State Lemon Law.
 



2. New York State Lemon Law: the Repair Attempt Requirement


New York General Business Law § 198-a requires that the manufacturer be given a reasonable number of attempts to repair a substantial defect.

This requirement forms the foundation of a lemon law claim.

The statute provides a presumption that a reasonable number of attempts has been made if the same defect is subject to repair four or more times, or if the vehicle is out of service for at least thirty cumulative days, provided the issue arises within the first two years or 18,000 miles of ownership, whichever occurs first.



Documenting Four Failed Repair Attempts


Mr. Chen brought his vehicle to the authorized dealership on four separate occasions for the same electronic defect within the statutory eligibility period.
Despite repeated repair efforts, the problem persisted.

These repair attempts triggered the statutory presumption under New York General Business Law § 198-a that a reasonable number of repair attempts had been made.
 



The Importance of Meticulous Record-Keeping


Throughout the process, Mr. Chen retained all repair invoices, service reports, and correspondence with the dealership.

He also kept a written log documenting the dates of service visits and the nature of each malfunction.

This documentation established a clear record that the manufacturer had been afforded multiple repair opportunities and failed to correct the defect — a critical component of any New York State Lemon Law claim.
 



3. New York State Lemon Law: Escalating the Claim


When the dealership was unable to permanently resolve the issue, Mr. Chen formally asserted his rights under the New York State Lemon Law.

Under the statute, a consumer may be entitled to either:

- A comparable replacement vehicle, or

- A refund of the purchase price, less a reasonable allowance for use.

This “allowance for use” is commonly referred to as the statutory mileage offset.



Navigating the Legal Process


A properly structured claim requires assembling a comprehensive demand supported by repair documentation and statutory eligibility proof.

An experienced legal team can present a clear timeline demonstrating compliance with the repair-attempt requirement and the substantial impairment standard.

The goal is to establish that the vehicle meets the statutory criteria for repurchase or replacement under GBL § 198-a.
 



4. New York State Lemon Law: Securing a Favorable Outcome


After reviewing the documented repair history and statutory eligibility requirements, the manufacturer ultimately agreed that the vehicle met the criteria for relief under New York General Business Law § 198-a.

The matter was resolved through a repurchase of the vehicle.



Achieving a Refund under the Statute


The manufacturer agreed to refund the purchase price of the vehicle, subject to the statutory mileage offset provided under GBL § 198-a, which accounts for reasonable use prior to the first repair attempt.

This resolution reflects the structured protections afforded by the New York State Lemon Law when a consumer carefully documents repair efforts and meets the statutory requirements.


If you have purchased a new vehicle in New York that has been subject to repeated, unresolved repairs within the statutory period, you may be entitled to relief under the New York State Lemon Law.

The attorneys at SJKP can help you evaluate whether your vehicle qualifies and guide you through the claim process in accordance with New York law.

Contact us for a consultation to discuss your legal options.


27 Feb, 2026


The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
Certain informational content on this website may utilize technology-assisted drafting tools and is subject to attorney review.

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