New Jersey’s Lemon Law: Could Your Car Qualify for a Refund?

Do You Have a Defective Car in New Jersey? Here’s What You Need to Know

Have you purchased a new or used car in New Jersey, only to find yourself dealing with constant repairs? Does your vehicle keep breaking down despite multiple trips to the dealership? If so, you might be wondering: Does New Jersey’s Lemon Law protect me?

New Jersey has strong Lemon Law protections to help consumers who unknowingly purchase defective vehicles. This law ensures that if your vehicle has serious defects that impair its use, safety, or value, and the manufacturer or dealer fails to fix the problem within a reasonable number of repair attempts, you may be entitled to a refund or a replacement vehicle.

This guide will explain everything you need to know about New Jersey’s Lemon Law, including:

• Who qualifies for protection under the law.
• How many repair attempts are considered reasonable.
• What steps to take when filing a Lemon Law claim.
• What compensation you may be entitled to receive.

If you believe you have a lemon, keep reading to understand your rights and legal options under New Jersey law.

What Is the New Jersey Lemon Law?

The New Jersey Lemon Law Act is a consumer protection law that helps buyers and lessees of defective vehicles get a refund or replacement when their car cannot be properly repaired. It is outlined in:

• N.J.S.A. 56:12-29 to 56:12-49 for new vehicles.
• N.J.S.A. 56:8-67 to 56:8-80 for used vehicles.

This law exists to protect consumers from manufacturers and dealers who sell cars with serious defects that cannot be fixed despite multiple repair attempts. Without this legal protection, buyers would be stuck with unreliable vehicles and high repair costs.

Does Your Vehicle Qualify Under New Jersey Lemon Law?

Not every defective vehicle is considered a lemon under New Jersey law. Your car must meet specific eligibility criteria based on whether it is new or used. Here’s how to determine if your vehicle qualifies.

New Car Lemon Law vs. Used Car Lemon Law

New Jersey has two separate Lemon Laws—one for new vehicles and another for used vehicles:

• New Car Lemon Law applies to new cars, motorcycles, and authorized emergency vehicles that experience significant defects within two years of delivery or before reaching 24,000 miles.
• Used Car Lemon Law applies to used vehicles sold by licensed dealers that are seven model years old or newer, have under 100,000 miles, and cost at least $3,000 at the time of sale.

While both laws require the manufacturer or dealer to repair defects, the process and eligibility requirements differ. The next sections will break down who qualifies and how to file a claim.

Eligibility for New Cars

Under N.J.S.A. 56:12-29 to 56:12-49, a new car, motorcycle, or authorized emergency vehicle is covered by the New Car Lemon Law if:

• The defect occurs within two years of the original delivery date or before reaching 24,000 miles, whichever comes first.
• The defect substantially impairs the vehicle’s use, value, or safety.
• The manufacturer has been given a reasonable number of attempts to repair the issue:

• At least three unsuccessful repair attempts for the same defect, OR
• One failed repair attempt for a severe safety defect that could cause death or serious injury, OR
• The vehicle has been out of service for repairs for at least 20 cumulative days.

Additionally, before filing a claim, the owner must send a certified letter to the manufacturer giving them one final opportunity to fix the problem. If the manufacturer fails to resolve the issue within 10 days, the car qualifies as a lemon.

Eligibility for Used Cars

The Used Car Lemon Law (N.J.S.A. 56:8-67 to 56:8-80) covers vehicles sold by licensed dealerships in New Jersey. To qualify:

• The car must be seven model years old or newer.
• It must have fewer than 100,000 miles at the time of purchase.
• The purchase price must be at least $3,000.
• The defect must arise within the dealer-provided warranty period:

• 90 days or 3,000 miles (whichever comes first) for vehicles with 24,000 miles or less.
• 60 days or 2,000 miles for vehicles with 24,001 to 60,000 miles.
• 30 days or 1,000 miles for vehicles with 60,001 to 100,000 miles.

Unlike the New Car Lemon Law, which holds the manufacturer accountable, the Used Car Lemon Law requires the dealer to make necessary repairs. If the dealer fails to fix the issue within three repair attempts or the vehicle is out of service for 20 cumulative days, the owner may be eligible for a refund or replacement.

What Defects Are Covered Under New Jersey Lemon Law?

Not every issue with a vehicle qualifies under New Jersey Lemon Law. To be considered a lemon, the defect must be substantial and affect the use, value, or safety of the car. Here’s a breakdown of defects that do and do not qualify.

Common Defects That Qualify

The following defects are commonly covered under New Jersey Lemon Law:

• Engine problems, such as stalling, excessive oil consumption, overheating, or sudden power loss.
• Transmission failures, including rough shifting, slipping gears, or delayed acceleration.
• Brake system defects, such as faulty ABS, soft brake pedals, or premature brake failure.
• Steering issues, like excessive vibration, pulling to one side, or loss of control.
• Electrical malfunctions, including dead batteries, malfunctioning power windows, and non-working infotainment systems.

Defects That Are NOT Covered

• Minor cosmetic problems such as scratches, dents, rattling noises, or faded paint.
• Normal wear and tear items, including worn-out tires, brake pads, and windshield wipers.
• Problems caused by owner neglect, such as failing to follow maintenance schedules or using the wrong fuel.

If your vehicle has serious mechanical defects and the manufacturer or dealer has failed to fix them despite multiple repair attempts, you may have a valid Lemon Law claim.

How to File a New Jersey Lemon Law Claim

If your vehicle qualifies under New Jersey’s Lemon Law, you will need to follow a structured process to file a claim and seek compensation. Below are the four key steps to ensure your case is properly submitted.

Step 1: Gather Required Documents

Before filing a claim, you must collect and organize essential documents that support your case. These include:

• Purchase or lease agreement – Proof of ownership or lease terms.
• Warranty and financing documents – To confirm that the defect occurred within the coverage period.
• All repair invoices and service records – These must show dates, mileage, and descriptions of attempted repairs.
• Certified letter sent to the manufacturer (for new cars only) – This is a required step before filing a claim.
• Towing and rental car receipts (if applicable) – You may be eligible for reimbursement of these expenses.

Keeping accurate and complete records will strengthen your claim and improve your chances of a successful outcome.

Step 2: Send a Certified Letter to the Manufacturer (New Cars Only)

For new car Lemon Law claims, you must formally notify the manufacturer before filing your case. This involves:

• Sending a certified letter with return receipt explaining the defect.
• Stating that the manufacturer has one final opportunity to repair the issue.

This letter must be sent after two failed repair attempts OR after the vehicle has been out of service for 20 cumulative days.

The manufacturer has 10 days from receipt of the letter to attempt a final repair.

Failure to send this letter may result in your claim being rejected, so it is crucial to complete this step.

Step 3: Submit a Lemon Law Application

If the manufacturer or dealer fails to resolve the defect, you can proceed with filing a Lemon Law application. Here’s how:

• Download the application from www.NJConsumerAffairs.gov.
• Complete the form with detailed information about your vehicle, defect, and repair history.
• Mail the application and supporting documents to:

• Lemon Law Unit
  New Jersey Division of Consumer Affairs
  P.O. Box 45026, Newark, NJ 07101

• Pay the $50 filing fee (this fee is refunded if you win your case).

Step 4: The Lemon Law Hearing

If the manufacturer or dealer does not resolve the issue, your case will proceed to a hearing before an Administrative Law Judge (ALJ). Here’s what to expect:

• The Lemon Law Unit schedules the hearing, typically within a few months of filing.
• Both parties present evidence and testimony before the judge.
• The judge issues an initial decision within 20 days after the hearing.
• The Director of Consumer Affairs reviews the decision and issues a final ruling within 15 additional days.

If you win your case, the manufacturer or dealer must comply with the ruling within 15 days or face penalties. If the decision is not in your favor, you still have the option to appeal or file a lawsuit in Superior Court.

By following these steps, you can take effective legal action and seek compensation for your defective vehicle.

What Compensation Can You Receive?

If your vehicle qualifies as a lemon under New Jersey Lemon Law, you may be entitled to compensation from the manufacturer or dealer. The remedies available depend on whether your vehicle falls under the New Car Lemon Law or Used Car Lemon Law.

Compensation for New Cars

If your new car is deemed a lemon under N.J.S.A. 56:12-29 to 56:12-49, you are entitled to one of the following:

• Full refund of the purchase price (minus a mileage deduction), OR
• Replacement vehicle (if the owner agrees).

Additionally, you may receive reimbursement for expenses, including:

• Repair costs for unsuccessful fixes.
• Rental car and towing fees incurred due to the defect.
• Attorney’s fees and court costs (if you win the case).

Compensation for Used Cars

If your used car qualifies as a lemon under N.J.S.A. 56:8-67 to 56:8-80, you may receive:

• Full refund of the purchase price (minus a mileage deduction), OR
• Replacement vehicle (if the dealer agrees).

Unlike new car claims, the Used Car Lemon Law does not require the dealer to cover attorney’s fees.

Mileage Deduction Formula for New Cars

If you choose a refund, the manufacturer may deduct a usage fee based on the mileage when the defect was first reported. The formula is:

Purchase Price × (Miles at First Repair Attempt ÷ 100,000) = Use Deduction

Example Calculation:

• Car Price: $30,000
• Miles at First Repair Attempt: 10,000 miles
• Deduction:

Refund Amount: $30,000 – $3,000 = $27,000

This deduction ensures that manufacturers are not responsible for normal wear and tear before the defect was reported.

If you qualify for a New Jersey Lemon Law claim, you may receive a refund, replacement, or reimbursement to compensate for your defective vehicle.

What If Your Claim Is Denied?

Not all Lemon Law claims are approved. If your New Jersey Lemon Law claim is denied, you still have legal options to pursue compensation for your defective vehicle.

Steps to Take If Your Claim Is Denied

• Appeal the Decision – You have 45 days to appeal the ruling if you believe there was an error or if new evidence supports your case.
• File a Lawsuit in New Jersey Superior Court – If your Lemon Law claim was denied, you can escalate the matter by suing the manufacturer or dealer in New Jersey Superior Court.
• Hire a Lemon Law Attorney – A legal professional can review your case, identify weaknesses, and strengthen your appeal. If you win a new car Lemon Law case, the manufacturer is required to pay your attorney’s fees.

Manufacturer Arbitration: Proceed with Caution

🚨 Warning: Some manufacturers offer their own arbitration programs, but these are optional and often favor the manufacturer. Unlike New Jersey’s state-run Lemon Law process, manufacturer-run arbitration may:

• Be biased toward the car company.
• Lack strong legal enforcement.
• Prevent you from seeking further legal action if you accept the outcome.

For the best chance of success, it is advisable to file directly with the New Jersey Lemon Law Unit or take legal action through the courts rather than relying on manufacturer arbitration.

Tips to Strengthen Your Lemon Law Claim

Filing a New Jersey Lemon Law claim requires strong evidence. To improve your chances of winning, follow these key steps to build a solid case:

• ✅ Keep Detailed Records – Maintain copies of all repair invoices, work orders, and service records. These documents must clearly show dates, mileage, and descriptions of the defect.
• ✅ Ensure Repair Invoices Clearly Describe the Defect – When taking your car in for repairs, ask the dealership or service center to specifically document the issue on the repair invoice. Avoid vague descriptions like “checked and no issue found.”
• ✅ Send Your Certified Letter on Time (New Cars Only) – New car claims require that you send a certified letter to the manufacturer after two failed repair attempts or 20 days out of service. This letter gives them a final opportunity to fix the defect.
• ✅ Do NOT Sell or Trade the Car While Filing a Claim – Your vehicle must remain in your possession throughout the Lemon Law process. If you sell or trade it in before the case is resolved, you could lose your legal rights.
• ✅ Consider Hiring an Attorney Early – While not required, an experienced Lemon Law attorney can help gather evidence, ensure paperwork is complete, and represent you at hearings. The manufacturer pays attorney fees if you win a new car claim.

By following these steps, you can strengthen your case and increase the likelihood of a successful Lemon Law claim.

Take Action Now If You Have a Lemon!

If you’re dealing with a defective vehicle in New Jersey, don’t wait—time limits apply under the Lemon Law. Whether you purchased a new or used car, you may be entitled to a refund, replacement, or reimbursement if your vehicle qualifies.

Key Takeaways:

• Your car must have persistent defects that impair its use, value, or safety.
• Manufacturers or dealers must be given a reasonable number of repair attempts.
• You must gather all repair records and, for new cars, send a certified letter before filing a claim.
• If your claim is approved, you could receive a full refund, replacement vehicle, or compensation for related costs.

Additional Details:
New Jersey Lemon Law Information