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New York State Attorney General New and Used Car Lemon Laws
If your new or used car is a “lemon”, there is
New York State
Eric T. Schneiderman O ce of the A orney General
help. Contact the Attorney General’s office for
directions on how to file a claim or work out a
settlement with the car dealer.
Dear New Yorker, Consumer Help Line 1-800-771-7755
Shopping for a car, www.ag.ny.gov
BUYING
new or used, can be a
daunting experience. Before You Negotiate:
The more information
you have, the less likely
Terms You Should Know
you are to be pressured
A CAR?
• Manufacturer’s Suggested Retail Price
into making a decision (“MSRP”) is the price recommended by
you’ll regret. the manufacturer that is posted on a new
car. Most are NOT sold at this price.
Here are some tips to help you put together the
information you need before you make this • Invoice price is the manufacturer’s initial
important purchase. Being a well informed charge to the dealer. Because this usually
is higher than the dealer’s actual cost
Consumer Tips
consumer will keep you in the driver’s seat…
(the dealers receive rebates and other
before and after you make the deal. discounts), it should not be used in auto
advertising, unless it reflects the dealers’
Sincerely, total final cost.
• Extended Warranties or Service
Contracts are expensive and very
profitable to the dealer. Check carefully
to see what both the manufacturer’s
Eric T. Schneiderman warranty and the extended warranty
cover. Often, the items most likely to
need repair or replacement will not
be covered by the extended warranty.
A copy of the terms and conditions of
the service contract must be provided
New York State Attorney General by the dealership. You are entitled to a
The State Capitol full refund, less any claims paid, within
Albany, New York 12224 twenty days of the mailing of the service
1-800-771-7755 contract or within ten days if the contract
is delivered at the time of sale.
www.ag.ny.gov
Considering a Used Car? Signing a Contract
• Have a trusted mechanic check out a used • Don’t give in to high-pressure sales tactics;
car before you buy it. don’t be afraid to walk out of the dealership
• Check an online service, such as CarFax. if you feel like you are being manipulated.
com, to find accident and repair records, • Be wary of “one-day only” deals.
including whether a car was declared • Take your time to read the contract. Make
salvage, labeled a “lemon,” or if there are sure all verbal promises are included in
problems with the odometer. your written contract. If necessary, take the
unsigned contract with you and read it over
Beware of odometer tampering: in the quiet of your own home.
• Check the title carefully for • Be certain the car’s serial number matches
Know Your Price Range inconsistencies, erasures and numbers the number on your contract.
that appear to have been written over;
Before you start looking at cars, determine what
• Be very wary of titles that say “noT Financing
you can afford to pay. Consider:
THE aCTUaL MILEagE;” • Shop around for financing. Often, your own
• How much do you have on hand to pay up
• Look for signs of tampering - loose bank will “prequalify” you for a loan. Use
front, in cash and/or trade-ins?
dashboard, broken speedometer, digits that to compare other offers.
• If you will borrow, what is the highest
on the left side that don’t lineup. • Dealers sometimes make greater profits on
monthly payment you can afford? Take into
account take-home income, living expenses financing than they do on the car itself, so
and any debt you currently owe. Choosing a Dealer negotiate finance charges.
• If you have credit problems, you may not be
Choosing a Vehicle • Check with the Better Business Bureau to
eligible for the advertised financing.
• Do some research. websites, such as find out if the dealer is reputable.
• Look out for a balloon payment, which is a
Consumer Reports, include reviews of • visit websites that review dealerships to see
large payment due at the end of the finance
reliability and value for new and used cars what other customers say.
agreement.
over several model years. They also compare • Considering a private sale for a used car?
• always know the total amount that you are
functions to help you choose a make and You may find a lower price, but such a sale
paying for the car, including interest, and not
model. is not covered by the Used Car Lemon Law,
just the monthly payments.
• other sources, such as www.edmunds. which provides important protections.
com or Kelley Blue Book, www.kbb.com, Refunds of Deposits
Trade-Ins
record the price of new and used cars. Many consumers mistakenly believe they
• Trading in your current vehicle? Remember:
Some surveys indicate that consumers who are entitled to a refund of their deposit if
a selling price discount is sometimes off-set
carefully research the price of cars pay an they decide not to buy a car. However, there
by under-valuating a trade-in or charging a
average of 5% less than consumers who is no right to cancel a contract, unless the
higher interest rate.
have not. dealer fails to conspicuously post the refund
• get a trade-in value from several dealers.
• Test drive any vehicle you are interested policy. If the dealer assists you in arranging
• Check web sites or publications such as the
in, including driving on different road for financing and you have not picked up the
N.A.D.A. Official Used Car Guide (www.
conditions. vehicle, you may cancel at any time prior to
nadaguides.com) or Kelley Blue Book for
suggested trade-in values. signing a finance agreement and receive a full
refund.
