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Leased Vehicle Lemon Law in NY

New York has one of the most comprehensive Lemon Laws in the country. Under New York Lemon Law, leased vehicles are covered.

Leased vehicles covered by New York’s new car Lemon Law must meet four conditions:

  • The vehicle was covered by the manufacturer’s warranty at the time of original delivery; and
  • The vehicle was purchased, leased, or transferred within 18,000 miles or two years from the date of original delivery, whichever comes first; and
  • The vehicle was purchased, leased, or transferred in New York State or is presently registered in New York State; and
  • The vehicle is primarily for personal use (more than 50% of the time).

In order to be considered a “lemon,” the vehicle must meet the following requirements: 

  • Does not conform to the manufacturer’s express warranty
  • Has substantial defects affecting the use, safety or value of the vehicle
  • Has manufacturer’s defects that occurred during the first two years from the original owner’s delivery date or the first 18,000 miles on the odometer (whichever period ends first)
  • Has been taken in four times for the same problem or if it has been out of service for 30 days due to repairs for one or more problems
  • Cannot have problems associated with any modifications that you made

If you have a successful Lemon Law claim and receive a refund, the refund is divided between you and the leasing company. Your refund is the total of your down payment plus the total of monthly lease payments, minus interest charges and any other service fees. The leasing company receives the balance.

If your leased vehicle is determined to be a lemon, your lease is terminated without penalty.

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