Buying a vehicle is a significant investment, and consumers expect their cars to function properly. However, when a car has persistent defects, it can lead to frustration, safety concerns, and financial loss. Fortunately, New Jersey’s Lemon Law provides protection for consumers who purchase both new and, in some cases, used vehicles that turn out to be defective.
In this article, we will explore New Jersey’s Lemon Law, its coverage for new and used cars, and legal options available to consumers who purchase a defective vehicle in the state.
Understanding New Jersey’s Lemon Law
New Jersey has one of the strongest Lemon Laws in the country, covering both new and certain used vehicles. The law is divided into two parts:
1️⃣ The New Car Lemon Law (N.J.S.A. 56:12-29 to 56:12-49) – Covers new vehicles with serious defects.
2️⃣ The Used Car Lemon Law (N.J.S.A. 56:8-67 to 56:8-80) – Offers limited protections for used car buyers.
New Jersey’s Lemon Law for New Cars
The New Jersey New Car Lemon Law protects buyers of new vehicles that have substantial defects affecting their safety, use, or value.
What Vehicles Are Covered?
✔ New cars, motorcycles, and authorized motor homes purchased or leased in New Jersey.
✔ Vehicles that are registered for personal, family, or household use.
✔ Defects that occur within the first 24 months or 24,000 miles (whichever comes first).
✔ Problems that substantially impair the use, safety, or market value of the vehicle.
🚫 What Vehicles Are Not Covered?
- Commercial vehicles.
- Vehicles with minor defects that don’t impact safety or value.
How the New Car Lemon Law Works
If a new car has a serious defect, New Jersey’s Lemon Law requires the manufacturer to:
1️⃣ Attempt Repairs: The manufacturer or dealer must be given a reasonable number of attempts to fix the defect.
- Three repair attempts must be made for the same defect OR
- The vehicle must be out of service for 20 or more days due to repairs.
2️⃣ Replacement or Refund: If the issue is not resolved after multiple repair attempts, the consumer is entitled to a refund or replacement vehicle.
3️⃣ Arbitration & Legal Action: If the manufacturer refuses to comply, the consumer can file a Lemon Law claim or take the case to court.
📑 Key Requirement: The consumer must notify the manufacturer in writing and allow them to attempt repairs before filing a claim.
⏳ Time Limit: The defect must be reported within 24 months or 24,000 miles, whichever comes first.
New Jersey’s Lemon Law for Used Cars
Unlike many states, New Jersey has a separate Lemon Law that provides limited protection for used car buyers. The Used Car Lemon Law applies to certain used vehicles sold by licensed dealers.
What Used Vehicles Are Covered?
✔ Vehicles purchased from a licensed dealer in New Jersey.
✔ Vehicles that are at least $3,000 and have less than 100,000 miles at the time of sale.
✔ The vehicle must be covered by a written dealer warranty (length depends on mileage).
🚫 What Used Vehicles Are Not Covered?
- Vehicles sold “as is” (with no dealer warranty).
- Private party sales (sales between individuals).
- Cars that cost less than $3,000 or have more than 100,000 miles.
Used Car Lemon Law Warranty Coverage
The length of the dealer’s warranty depends on the mileage at the time of sale:
🔹 Less than 24,000 miles – 90-day / 3,000-mile warranty.
🔹 24,000 to 60,000 miles – 60-day / 2,000-mile warranty.
🔹 60,000 to 100,000 miles – 30-day / 1,000-mile warranty.
What Must the Dealer Repair?
The warranty must cover repairs for:
- ✔ Engine and transmission defects.
- ✔ Major electrical system failures.
- ✔ Braking, steering, and fuel system issues.
⚠ Important Note: If the dealer fails to repair the vehicle after three attempts, or the vehicle is out of service for 20+ days, the consumer may be eligible for a refund under the Used Car Lemon Law.
Legal Protections for Used Car Buyers in New Jersey
Even if a used car does not qualify under the Used Car Lemon Law, consumers still have other legal protections.
1. New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.)
The New Jersey Consumer Fraud Act (CFA) protects consumers from deceptive and fraudulent sales practices, including used car sales.
Under the CFA, a car dealer cannot:
🚫 Misrepresent a vehicle’s condition, history, or mileage.
🚫 Sell a vehicle with hidden defects or falsify accident history.
🚫 Engage in odometer fraud (rolling back mileage).
🚫 Advertise a car as certified when it has significant defects.
If a dealer engages in fraudulent sales practices, the buyer may be able to sue for damages, including:
✔ A refund or replacement vehicle.
✔ Reimbursement for repair costs.
✔ Triple damages if the dealer knowingly committed fraud.
2. Federal Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act is a federal law that protects consumers when they purchase a vehicle with a written warranty.
✔ If a used car comes with a dealer’s warranty or extended warranty, the dealer must honor it.
✔ If the dealer refuses to repair the vehicle as promised, the buyer may have grounds for a lawsuit.
What to Do If You Buy a Defective Car in New Jersey
If you purchase a new or used car in New Jersey and later discover major defects, follow these steps:
1️⃣ Check Your Warranty: If the car is covered by a manufacturer’s warranty, dealer warranty, or the Used Car Lemon Law, demand repairs.
2️⃣ File a Complaint with the Division of Consumer Affairs: If the dealer refuses to honor the warranty, report them to the New Jersey Division of Consumer Affairs.
3️⃣ Request Arbitration: If your new car qualifies under the Lemon Law, you can request Lemon Law arbitration through the state.
4️⃣ Consider Legal Action: If the dealer engaged in fraudulent practices, you may be able to sue under the Consumer Fraud Act.
5️⃣ Use Small Claims Court: If the damages are under $15,000, you can file a case in New Jersey Small Claims Court.
How to Avoid Buying a Lemon in New Jersey
✔ Buy from a reputable dealer – Research reviews and complaints with the Better Business Bureau (BBB).
✔ Get a vehicle history report – Use Carfax or AutoCheck to check for accidents and title issues.
✔ Have the car inspected by a mechanic – Get a pre-purchase inspection before buying.
✔ Avoid “as-is” sales – A car sold “as is” has no warranty protections.
✔ Check for recalls – Use the National Highway Traffic Safety Administration (NHTSA) website.
Final Thoughts
New Jersey has strong Lemon Laws that protect both new and some used car buyers. If you unknowingly purchase a defective vehicle, legal options exist to seek compensation or a refund. Always research before buying a car and take steps to protect yourself from fraud and unexpected repairs.
