Do you own a lemon?

The New Car Lemon Law applies to passenger vehicles, motorcycles, and authorized emergency vehicles purchased, leased, or registered in New Jersey. The Used Car Lemon Law covers used vehicles up to 7 model years old with fewer than 100,000 miles at the time of purchase, as long as they were bought from a licensed dealership. However, the law does not cover commercial vehicles, off-road vehicles, boats, or vehicles bought in private sales.

A vehicle is considered a lemon if it has a substantial defect that impairs its use, safety, or market value and the manufacturer or dealer fails to repair it after a reasonable number of attempts. For new cars, this means 3 unsuccessful repair attempts for the same defect, 1 failed attempt for a serious safety issue, or 20 cumulative days out of service within 2 years or 24,000 miles. For used cars, the defect must arise within the dealer’s limited warranty period (90 days/3,000 miles for cars with ≤24,000 miles, 60 days/2,000 miles for 24,001–60,000 miles, and 30 days/1,000 miles for 60,001–100,000 miles).

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

To file a Lemon Law claim in New Jersey, first gather all required documents, including purchase/lease agreements, repair records, and warranty details. For new cars, you must also send a certified letter to the manufacturer giving them a final chance to repair the defect. If the issue remains unresolved, download the Lemon Law application from www.NJConsumerAffairs.gov and mail it with the required documents and a $50 filing fee to:

Lemon Law Unit New Jersey Division of Consumer Affairs

• P.O. Box 45026, Newark, NJ 07101

If your claim qualifies, it may proceed to a hearing before an Administrative Law Judge. If successful, you could receive a refund, replacement, or reimbursement for expenses.

If your vehicle is declared a lemon, you may receive a full refund or a replacement vehicle. The refund includes the purchase price, sales tax, registration fees, loan payments, and manufacturer-installed options, minus a mileage deduction based on when the defect was first reported. You may also be reimbursed for rental car costs, towing expenses, repair costs, and expert witness fees. Additionally, the manufacturer is required to cover reasonable attorney’s fees if you win your case.

Read: Lemon Cars in New Jersey: How to Get a Refund, Replacement, or More

If a manufacturer fails to follow a Lemon Law ruling, they can be fined up to $5,000 per day until they comply. If they delay or refuse payment, you can file a lawsuit in New Jersey Superior Court to enforce the ruling and request additional damages for the delay. Most manufacturers comply quickly to avoid fines, but in rare cases, legal action may be necessary.

Yes, if the manufacturer deliberately delays your compensation or acts in bad faith, you may be able to sue for additional damages beyond the refund or replacement. This could include punitive damages, emotional distress compensation, and loan-related penalties if you suffered financial hardship due to the defect. These additional claims are typically pursued under New Jersey’s Consumer Fraud Act or breach of warranty laws.

Yes. For new cars, the defect must occur within 2 years from the original delivery date or 24,000 miles, whichever comes first. For used cars, defects must appear within the dealer’s limited warranty period (up to 90 days or 3,000 miles, depending on the vehicle's mileage at purchase).

The Uniform Commercial Code (UCC) allows up to 4 years to bring a breach of warranty claim, but acting sooner is better to avoid legal complications.

Consumers in New Jersey can seek assistance from the New Jersey Division of Consumer Affairs, which oversees Lemon Law enforcement. You can contact them here:

New Jersey Division of Consumer Affairs – Lemon Law Unit 

• P.O. Box 45026, Newark, NJ 07101 
• (973) 504-6226
•  www.NJConsumerAffairs.gov