Buying a New Car  

You can only buy a new car from a dealer who is licensed and registered with the Department of Motor Vehicles (DMV). New cars have a manufacturer’s warranty that may protect you. Licensed dealers must meet certain DMV requirements in selling new cars.  These requirements include: 

  • Providing service or repairs under the manufacturer’s warranty; 
  • Stating on the bill of sale that the car is new, used, or salvage. It must also state if it was not manufactured to U.S. standards; 
  • Providing an odometer disclosure statement; 
  • If you finance the vehicle, handling the title and registration for you. 

When buying a new car, do your research first so you know the market value of the car you want. Also, research the dealer to make sure they have a good rating with the Better Business Bureau. See if they have good reviews online. If you are trading in your vehicle, make sure you know the value of it as well. Take your time test-driving the car and looking over the contract before signing. If the dealer is pressuring you too much, walk away. You can ask to take the contract home with you to review it before signing. You may not get a refund of any deposit you put on the car. You can change your mind anytime before signing the finance agreement if you have not picked up the car. You can receive a refund under these circumstances. 

New York also has strict guidelines for how dealers may advertise. Be careful not to fall victim to a “bait and switch” scam. The dealer’s advertisement must be truthful. They must have the cars and deals advertised.  You should always bring the ad with you to the dealership. Report any false advertising to the Department of Consumer Affairs.  

Legal Editors: David Kassell, Esq. and Mark Grossman, Esq., May 2018 

Changes may occur in this area of law. The information provided is brought to you as a public service with the help and assistance of volunteer legal editors, and is intended to help you better understand the law in general. It is not intended to be legal advice regarding your particular problem or to substitute for the advice of a lawyer.

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