Stuck With a Defective Car? Your Guide to Filing a Lemon Law Claim in New Jersey

Step-by-Step Process to File a Lemon Law Claim in New Jersey

Every year, thousands of New Jersey car owners deal with vehicles that have persistent mechanical defects. Many of these owners face repeated repair attempts without a permanent fix, leaving them frustrated and uncertain about their options. Fortunately, New Jersey’s Lemon Law provides a legal path to relief, ensuring that consumers are not stuck with a defective car.

The New Jersey Lemon Law is designed to protect buyers and lessees of new and used vehicles that develop serious defects affecting their use, value, or safety. If a manufacturer or dealer fails to fix a qualifying defect after a reasonable number of repair attempts, the law guarantees a refund, replacement vehicle, or financial compensation for eligible car owners.

This guide is for New Jersey car owners who suspect they have purchased a lemon and need clear, actionable steps to file a claim. Whether you’re dealing with a defective new car covered under the manufacturer’s warranty or a used car with ongoing problems, this article will walk you through every step of the claims process.

In the following sections, you’ll learn how to determine if your car qualifies, what documents are required, how to properly file a claim, and what to expect during the legal process. If you believe your car meets the criteria, understanding your rights under New Jersey law is the first step toward securing the compensation you deserve.

Does Your Vehicle Qualify for a Lemon Law Claim?

Not all defective vehicles qualify under New Jersey’s Lemon Law. Your car must meet specific eligibility criteria depending on whether it is new or used.

Eligibility for New Cars (N.J.S.A. 56:12-29 to 56:12-49)

To be covered under the New Car Lemon Law, your vehicle must meet these requirements:

• The defect must occur within two years of the original delivery date or before reaching 24,000 miles, whichever comes first.
• The defect must substantially impair the vehicle’s use, safety, or market value.
• The manufacturer must have been given a reasonable number of repair attempts, defined as:

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

Eligibility for Used Cars (N.J.S.A. 56:8-67 to 56:8-80)

The Used Car Lemon Law protects buyers of pre-owned vehicles but has different requirements:

• The car must be seven model years old or newer.
• It must have fewer than 100,000 miles at the time of purchase.
• The vehicle must have been purchased from a licensed dealer (private sales do not qualify).
• The defect must arise within the dealer’s limited 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.

What Defects Qualify?

To be considered a lemon, the defect must significantly impact the car’s performance, safety, or resale value. Common covered defects include:

• Engine problems, such as power loss, excessive stalling, or overheating.
• Transmission issues, including gear shifting failures or slipping.
• Brake system malfunctions, such as faulty ABS or premature failure.
• Steering problems, like loss of control or excessive vibration.
• Electrical system failures, including battery drain, dashboard malfunctions, and faulty wiring.
• Persistent warning lights, such as the check engine light or brake system warning.

What Defects Are NOT Covered?

• Cosmetic issues (scratches, dents, peeling paint, minor rattling noises).
• Normal wear and tear, including worn tires, brake pads, or windshield wipers.
• Damage caused by owner neglect, such as failure to maintain proper fluid levels.
• Accident-related issues, including problems resulting from a crash or misuse.
• Unauthorized modifications or repairs performed by unapproved mechanics.

How to File a Claim

If your vehicle meets the eligibility requirements and continues to experience serious, unresolved defects, you may have a valid Lemon Law claim. The next section will guide you through the required documents and steps to file a claim.

Step 1: Gather All Required Documents

Before filing a New Jersey Lemon Law claim, you must collect key documents that serve as evidence of your defective vehicle and failed repair attempts. Proper documentation strengthens your case and ensures a smoother claims process.

Essential Paperwork for Filing a Claim

To successfully file a claim, you will need:

• Purchase or lease agreement – This proves ownership or leasing rights and establishes the vehicle’s original delivery date.
• Warranty and financing documents – These confirm that the defect occurred within the applicable warranty period.
• All repair invoices and service records – These should show the dates, mileage, and specific defect being repaired. Ensure each invoice clearly states the issue reported and the attempted fix.
• Certified letter sent to the manufacturer (New Cars Only) – New Jersey requires you to send a formal notice giving the manufacturer one final opportunity to repair the defect before filing a claim.
• Towing and rental car receipts (if applicable) – If you had to rent a car or tow your vehicle due to the defect, these costs may be reimbursed under the Lemon Law.

Why Keeping Detailed Records is Important

A lack of proper documentation can delay your claim or result in a denial. Every repair visit must be well-documented, with invoices listing the specific issue and repair attempt. If the dealership fails to record the defect properly, request a corrected invoice before leaving.

By keeping thorough records, you increase your chances of winning your claim and securing a refund, replacement, or compensation under New Jersey Lemon Law.

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

For new car Lemon Law claims, New Jersey law requires car owners to formally notify the manufacturer before filing. This step gives the manufacturer one final opportunity to fix the defect and prevents unnecessary disputes during the claims process.

Legal Requirement

Before submitting a Lemon Law claim, you must send a certified letter with return receipt to the vehicle manufacturer’s customer service department. This letter serves as official notice that your car has an unresolved defect and that you intend to pursue legal action if it is not repaired.

What the Letter Must Include

To be valid, your letter should contain the following details:

• Vehicle information – Include the VIN, make, model, and year of the car.
• Description of the defect – Clearly explain the problem with the vehicle and how it affects its use, safety, or value.
• Repair history – List all previous repair attempts, including dates, mileage at each visit, and dealership information.
• Request for a final repair attempt – Inform the manufacturer that you are giving them one last chance to fix the issue.

Manufacturer’s Response

Once the manufacturer receives your letter, they have 10 days to schedule a final repair attempt. If they fail to respond or cannot successfully fix the defect, your vehicle is legally classified as a lemon, allowing you to proceed with your Lemon Law claim.

Sending this letter is a critical step in the claims process, and failure to do so may result in your case being denied.

Step 3: Submit Your Lemon Law Application

Once the manufacturer has failed to fix the defect after a reasonable number of repair attempts, you can officially file a New Jersey Lemon Law claim. This step involves submitting a formal application along with supporting documents.

Where to File

To start the process, follow these steps:

• Download the Lemon Law application from www.NJConsumerAffairs.gov.
• Complete the form with accurate details about your vehicle, defect, and repair history.
• Mail the completed application and required 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).

What Happens After Filing?

• The Lemon Law Unit reviews your application to verify eligibility.
• If the claim meets the legal requirements, the manufacturer is notified of the case.
• The manufacturer may choose to:

• Offer a settlement (such as a refund or replacement vehicle), OR
• Request arbitration to dispute the claim.

If the manufacturer refuses to settle, the case proceeds to a formal hearing, where an Administrative Law Judge will determine the outcome. Filing your claim properly ensures you move forward in the legal process without unnecessary delays.

Step 4: The Lemon Law Hearing

If the manufacturer does not offer a settlement or disputes your claim, the case proceeds to a formal hearing before an Administrative Law Judge (ALJ). This step is crucial in determining whether you are entitled to a refund, replacement vehicle, or compensation under New Jersey’s Lemon Law.

When Does a Hearing Occur?

• If the claim remains unresolved, the Lemon Law Unit schedules a hearing before an ALJ.
• Hearings are typically scheduled within a few months after filing.
• Both the car owner and the manufacturer will have an opportunity to present their cases.

What to Expect During the Hearing

The car owner presents evidence, including:

• Repair invoices and service records.
• Testimony about how the defect affects the use, value, or safety of the vehicle.
• Any correspondence with the manufacturer.

The manufacturer presents its defense, which may include:

• Claiming the defect is minor or does not impair the vehicle.
• Arguing that the issue was fixed within a reasonable time.

The judge issues a decision within 20 days after the hearing.

Final Decision & Compliance

• The Director of Consumer Affairs reviews the ALJ’s ruling and issues a final order within 15 days.
• If the manufacturer fails to comply with the decision, they may face penalties of up to $5,000 per day.

Winning your case means you can finally receive the compensation you deserve under New Jersey’s Lemon Law.

What Happens If You Win?

If you successfully prove that your vehicle qualifies as a lemon, you are entitled to compensation under New Jersey’s Lemon Law. The manufacturer must comply with the judge’s ruling and provide one of the following remedies:

Possible Compensation

• Full refund of the purchase price (minus a mileage deduction) OR
• Replacement vehicle of comparable value and condition.
• Reimbursement for out-of-pocket expenses, including:

• Repair costs for unsuccessful attempts.
• Rental car expenses while your vehicle was being repaired.
• Towing costs related to the defect.

Mileage Deduction Formula for Refunds

If you receive a refund, the manufacturer may deduct an amount based on the miles driven before the first repair attempt. The formula used 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: $30,000 × (10,000 ÷ 100,000) = $3,000
• Refund Amount: $30,000 – $3,000 = $27,000

Winning your claim ensures that you do not suffer financial losses due to a defective vehicle. If the manufacturer fails to comply, they can face legal penalties until they fulfill the court’s decision.

What If Your Claim Is Denied?

Not all Lemon Law claims are approved on the first attempt. If your claim is denied, you still have legal options to fight for compensation. Acting quickly is essential, as you have a limited time to challenge the decision.

Appeal the Decision

• If you disagree with the ruling, you can appeal within 45 days of receiving the decision.
• Appeals must be filed with the New Jersey Superior Court, Appellate Division.

File a Lawsuit in NJ Superior Court

• If an appeal is unsuccessful or you prefer to bypass the administrative process, you can sue the manufacturer in New Jersey Superior Court.
• A lawsuit may result in a court-ordered refund, replacement, or additional damages.

Hire a Lemon Law Attorney

• A Lemon Law attorney can guide you through the appeal or lawsuit process.
• If you win a new car Lemon Law case, the manufacturer is required to pay your legal fees.

If your claim is denied, do not give up—you still have powerful legal options to get the compensation you deserve.

Additional Details:
New Jersey Lemon Law Information