The New Jersey Lemon Law is the primary legislature dedicated to resolving disputes arising from the purchase of defective vehicles in the state. It helps victims of such vehicles to seek relief so long as they meet certain warranty and mileage requirements. Unlike most states, the New Jersey Lemon Law covers both new and used cars.
The process for filing a claim is straightforward, as outlined in the New Jersey Administrative Code. However, legal technicalities and vague interpretations of the clauses in warranties give attorneys of vehicle manufacturers and dealers loopholes to deny aggrieved consumers their claims. As such, it’s expedient to hire a reputable used car Lemon Law attorney before filing a claim.
Easy Lemon has some of the best Lemon Law attorneys in New Jersey. With a win rate of 99%, we have helped several defective used car owners in New Jersey and beyond receive full refunds and vehicle replacements. The good part is we don’t charge upfront attorney fees. Contact us now for a free case evaluation.
This article covers the essentials of used car lemon law in New Jersey, the type of vehicles eligible, how to file a successful claim, and the role of Lemon Law attorney services in the process.
What Is the Lemon Law in New Jersey?
The Lemon Law in New Jersey is a consumer protection law enacted in 1989 for New Jersey consumers who are victims of purchasing defective motor vehicles. As long as the owner can prove that the car is a lemon, they can obtain relief in the form of vehicle replacement or refund of the full purchase price. New Jersey Lemon Law is divided into two parts – new car Lemon Law and used car Lemon Law.
The former caters to new motor vehicles purchased or leased from manufacturers or authorized dealers. To qualify for a claim under this law, you must have experienced persistent material defects despite a reasonable number of repair attempts. Alternatively, the issues must have kept the car out of service for up to 20 cumulative days. Notwithstanding, you must be certain that the defects occurred within the first 24 months or 24,000 miles of the original purchase.
On the other hand, the New Jersey used car Lemon Law is quite flexible in terms of mileage but strict with other eligibility requirements, as we will explain in subsequent sections of this blog. It caters to motor vehicles purchased for at least $3,000 from a licensed dealer. The eligible odometer reading is 100,000 miles or less.
Does Lemon Law Apply to Used Cars in New Jersey?
Yes, Lemon Law applies to used cars in New Jersey, as long as they have written warranties and meet other stipulated requirements in the New Jersey Administrative Code (NJAC). For a start, the used motor vehicle’s acquisition cost must be at least $3,000 and it must not be more than seven model years old as of the time of purchase.
During the purchase, the used car dealer is required to give you one of the following three warranty coverages depending on the odometer reading:
- 90 days (three months) or 3,000 miles, whichever comes first, for a vehicle with a mileage reading of 24,000 miles or less.
- 60 days (three months) or 2,000 miles, whichever comes first, for a 24,000 – 60,000 mileage reading
- 30 days (one month) or 1,000 miles, whichever comes first, for a 60,000 – 100,000 mileage reading
If you’re purchasing a used motor vehicle with 60,000 miles or more, you may waive your warranty rights for a better purchase price negotiation. However, that waiver must be put in writing. This is because New Jersey Law requires that every purchase of a used motor vehicle with less than 100,000 mileage from a licensed dealer is automatically covered by warranty, whether or not a written warranty is issued.
The only exception to this rule is if the buyer signs a written waiver. A waiver means the dealer is relieved of every responsibility of fixing your car in the event of any defects.
What Vehicles Are Covered Under the NJ Used Car Lemon Law?
The New Jersey Used Car Lemon Law only applies to passenger cars, including emergency vehicles and motor homes purchased in the state. Unlike the new motor vehicle lemon law, it does not apply to leased vehicles. Similarly, it does not cover motorcycles, commercial vehicles, salvage vehicles, off-road vehicles, flood-damaged vehicles, and other kinds of vehicles that an insurance company would consider a total loss.
Also, the used motor vehicle Lemon Law does not apply to private sales. If you didn’t buy from a licensed dealer, you cannot file a Lemon Law claim if you later discover recurring material defects in the car. Since the goal is to offer the best consumer protection, vehicles under a valid manufacturer warranty or recall program are exempted from seeking relief under the law.
If your used motor vehicle is still within your manufacturer’s warranty period, you may explore other legal provisions, such as the Magnuson Moss Warranty Act, to pursue your due compensation. Whichever the case, you need a Lemon Law attorney for proper representation and to increase your chances of winning.
What Types of Problems Does the New Jersey Used Car Lemon Law Cover?
Several problems may crop up in a car due to the numerous moving internal lubricated parts involved. The New Jersey Used Car Lemon Law covers most of these problems as long as they are not due to the owner’s negligence or failure to comply with proper maintenance routine. Other exclusions include wear-and-tear and cosmetics-related issues. Let’s categorize problems covered under the law according to the operational systems they fall into:
- Transmission failure: Transmission failure is often associated with malfunctioning of one or more internal lubricated parts in the transmission system. They include: throw-out bearings, manual clutch master, slave cylinders, transmission mounts, pressure plate, and torque converter. Others are vacuum modulators,
- Engine problems: Internal lubricated parts that can cause this include cylinder heads, engine mounts, engine blocks, water pump, oil pan, oil pump, turbo-charger housing, and valve covers.
- Brake system defects: Any breakdown in the brake system must be treated as a serious issue because it substantially impairs the safety of the driver, passengers, and other road users. Covered items for these defects include hydraulic lines and master cylinders. However, the used motor vehicle Lemon Law doesn’t cover wear-and-tear items, such as brake pads.
- Steering malfunctions: These may be due to the failure of any of its core internal lubricated parts, such as the power steering pump and steering column shaft.
- Electrical system issues: These have been known to cause fire outbreaks in cars. Some of the covered items that could warrant such are alternators, sound systems, and internal wiring.
- Front Wheel Drive (FWD) and Rear Wheel Drive (RWD): Each of these drivetrain layouts have distinct internal lubricated parts that could develop faults over time. They include the front hub bearings, axle shafts, constant velocity joints, propeller shafts, seals, and gaskets.
What Are Your Rights If You Bought a Lemon Used Car?
If you discover that the used motor vehicle you bought is a lemon, you’re entitled to a full purchase price refund or vehicle replacement under the New Jersey Used Car Lemon Law. Before you conclude that the car is a lemon, you must have made at least three attempts to fix the same material defect, and/or the car must have been out of service for at least 20 days due to one or more defects.
You are required to pay only $50 to the used car dealer for the repair of each covered item and all these issues must occur during the warranty period. If you eventually decide that the car is a lemon, you may file a Lemon law application in the Lemon Law Unit of the NJ Division of Consumer Affairs.
A dealer may offer you a replacement car once they learn of your application. But it’s your right to either accept or demand a full refund instead. A full refund includes the total acquisition cost and repair costs minus the fair deduction for personal use and a reasonable allowance for any wear and tear. This deduction is calculated as follows: 51 cents x the number of miles driven.
The number of miles driven is simply the current odometer reading minus the reading at the time of purchase. For instance, if you bought the car when it was at 27,000 miles and the Lemon Law verdict was passed when the mileage was at 29,000 miles, the deduction for personal use will be = $0.51 x (29,000 – 27,000) = $1,020.
The 51 cents is the standard amount the IRS uses to calculate the devaluation of vehicles per mileage.
What to Do If Your Used Car Is a Lemon in New Jersey?
These are the step-by-step procedures to follow once you’ve ascertained that the used car you purchased in New Jersey is a lemon.
1. Review Warranty Coverage
One of the key determinants of a successful Lemon law claim in NJ is the type of warranty coverage on the used motor vehicle. Ensure that the repair attempts on the car happened during the 30, 60, or 90-day warranty period, as the case may be. If you have a valid manufacturer’s written warranty that covers the material defects under consideration, you won’t be eligible to file a lemon law claim. You may seek redress through other applicable laws, such as the Magnuson Moss Warranty Act.
2. Document the Problem
Before you decide to file a Lemon law application, you must have documented all the defects you experienced. These documents are important because, without them, you can’t prove your lemon case against the dealer. During each visit to the repair shop, request a detailed breakdown of the issue fixed, the lubricated internal parts involved, and whether or not the repair attempt was successful.
All these should be captured in duly signed repair orders and repair invoices. The former is issued before or during the repair while the latter comes at the end. Take note of the odometer reading when you drive into the repair shop and when you leave. Also, document the number of days the vehicle was inoperable as a result of these repairs. Video recording and photo evidence will go a long way in strengthening your case.
3. Allow a Reasonable Amount of Time for Repair
“A reasonable amount of time” in the context of the New Jersey used motor vehicle Lemon Law is three repair attempts or 20 out-of-service days owing to the repairs. To be eligible for a claim, the defect must remain after the final attempt. Since the warranty period is quite short—30 to 90 days—don’t delay in contacting your licensed dealer the moment any issue arises.
Knowing the provisions of the Lemon Law, some used car dealers may apply some tactics that will get you not to satisfy the full eligibility requirements before time runs out. As such, document any action you may consider a delay tactic on the part of the dealer or their authorized service centers.
In the same vein, keep a log of your emails, texts, and call history exchanged with the dealer, as they may be admitted into evidence during the Lemon Law hearing. It’s also noteworthy that repair is not 100% free. You’re to pay $50 for the repair of each covered item. It’s advisable to consult your used car Lemon law attorney for a proper interpretation of this repair cost.
4. Consult a Lemon Law Attorney for Used Motor Vehicles
It is not mandated by law to hire an attorney for Lemon law proceedings. However, it’s important you do so because the car dealer most likely has legal representation. Their tactic is often to pry on consumers’ lack of legal knowledge to disqualify their claims. A Lemon law attorney for used cars, like those at Easy Lemon, will carefully evaluate your case and help you deal with legal technicalities that could mar your argument.
5. File a Used Car Lemon Law Complaint
Once you’ve met all the requirements, submit the Lemon law application, Division of Consumer Affairs complaint form, and copies of other supporting documents to the Lemon Law Unit of the NJ Division of Consumer Affairs.
Upon review and confirmation that your case meets the requirements, the unit will approve your application and send a copy to the dealer. If they fail to respond within ten days or if the material defect persists, you would be required to decide on whether to move ahead with the Lemon Law hearing under the Office of Administrative Law (OAL).
This decision is important because there are four ways you can seek relief under the NJ Lemon Law, of which the OAL is one. The Lemon Law Unit office doesn’t preside over any of these resolution systems; it only offers compliance oversights for consumers to seek relief. The four resolution avenues are:
- The Office of Administrative Law hearing is presided over by the Administrative Law Judge (ALJ)
- The Division of Consumer Affairs arbitration program known as the Alternative Dispute Resolution Unit (ADR)
- Informal dispute resolution channels (arbitration) set up by the dealer
- Outright lawsuit in a NJ Superior Court
The nature of the case may determine the option to opt for. That’s why it’s important to work with an experienced Lemon Law attorney for used cars.
6. Office of Administrative Law Hearing
If you decide to move on with an OAL hearing, the ALJ will set a hearing date within 20 days of accepting your application. The OAL hearing is a quasi-judicial setting and the decision is binding on all parties involved. The judge is expected to deliver an Initial Decision within 20 days of the hearing.
If you’re not satisfied with this decision, you have up to eight days to file an Exception to the Director of the Division of Consumer Affairs. The exception should show reasons why the Director should set aside the Initial Decision, but must not repeat the evidence already provided in the hearing.
The Director will release the Final Decision within 15 days from the date of the Initial Decision. This will either be a reflection of the ALJ’s decision or a modification in the light of your filed Exception. If the decision is in your favor, you will receive a refund or vehicle replacement. Otherwise, you may file an appeal in the Appellate Division of the Superior Court within 45 days.
7. Resolution by the Dealer or Court Action
These are alternatives to an OAL hearing. After filing your Lemon Law Application in the Division, you may opt for the dealer’s arbitration program if you have trust in the process. If you’re unsatisfied with the ruling, you may proceed to the OAL. However, you must know that the dealer’s legal team can use details of the arbitration proceedings against you in the OAL hearing.
Alternatively, you may proceed to file an independent lawsuit against the dealership in the Superior Court. In any of these options you adopt, you will significantly increase your chances of winning if you work with a competent Lemon Law attorney for used cars. In addition to getting your due compensation upon winning the case, you may also receive reasonable attorney fees.
What Compensation Can You Get Under New Jersey’s Lemon Law?
The New Jersey Used Car Lemon Law explicitly captures two forms of compensation—refund and vehicle replacement. However, there is room for negotiated settlements between both parties, such as the Lemon Law cash-and-keep settlements.
A vehicle replacement means that the dealer will give you a similar vehicle in terms of make and model, in place of the defective one. You may also request a different model depending on your negotiations. On the other hand, a full refund includes the total purchase price and the repair costs minus deductions for personal use. It also excludes sales taxes and registration fees.
As we mentioned earlier, the IRS pegs the devaluation of motor vehicles to 51 cents ($0.51) per mile driven. Hence, the deductible is the number of miles driven from the purchase day multiplied by 51 cents. Note that some Lemon Law settlements may be taxable. Consult your attorney to advise you accordingly.
Are You Stuck With a Used Lemon Motor Vehicle?
No one deserves to be stuck with a defective car. Beyond the safety risks that come with it, the experience can have significant negative impacts on your mental health. The New Jersey Lemon Law for used motor vehicles offers a pathway to get legal relief from your auto dealer in the form of vehicle replacement or refund.
All you need is enough evidence and a competent attorney to help you prove your case either in an arbitration or court. Easy Lemon is the best Lemon Law firm in New Jersey. With an incredible win rate of 99%, we’ve helped several used car owners get the compensation they deserve. Contact us now for a free case evaluation.
FAQ
How Long Do I Have to File a Lemon Law Claim in New Jersey?
If it is a new car, you must file a Lemon Law claim within 24 months of the original purchase. However, if it is a used motor vehicle you must file the claim within 30, 60, or 90 days of purchase, depending on the written warranty you received from the manufacturer or dealer.
Can I File a New Jersey Lemon Law Claim If I Bought the Car ‘As-Is’?
No, you cannot file a NJ Lemon Law claim for a motor vehicle bought “as-is.” Buying “as-is” means you have waived your right to warranty coverage, which translates to non-eligibility for Lemon Law claims.
What If My Used Car Has Problems After the Lemon Law Warranty Expires in NJ?
You cannot file a Lemon Law claim in New Jersey outside of the vehicle’s warranty period. However, you may seek relief under the Federal Lemon Law, also known as the Magnuson-Moss Warranty Act.
What Qualifies as a Lemon Used Car in New Jersey?
Your used car may qualify as a lemon if it has a persistent defect that substantially impairs its use, safety, or value despite three or more repair attempts. Alternatively, the car may still qualify for a Lemon Law claim if it has suffered one or more material defects that put it out of service for 20 cumulative days.
All these must occur within the car’s warranty period. Note that a used car with a valid manufacturer’s written warranty or covered under a recall program is not eligible for claims under the NJ Lemon Law.
How to File a Lemon Law Claim in New Jersey
To file for a Lemon Law claim in New Jersey, complete the Lemon Law Application and Division of Consumer Affairs Complaint Form. Submit them alongside every supporting document and evidence of your claim to the Lemon Law Unit of the NJ Division of Consumer Affairs.
What Are the Evidence Requirements for a Lemon Law Claim in New Jersey?
The evidence includes, but is not limited to, duly signed Repair Orders and Repair Invoices, texts, emails, and phone logs between the car owner and manufacturer or dealer, as the case may be. You can also add pictures and video recordings, showing the problems in the car and your interactions with the service centers. Additionally, your certified mail return receipt is a necessary piece of evidence for a new vehicle Lemon Law claim.
How Long Do You Have to Return a Used Car in NJ?
You can only return a used car in New Jersey after you and the dealer have reached an agreement. For such an agreement to be reached under the Lemon Law, the car must have satisfied the conditions to be classified as a lemon. In that case, you can file for a Lemon Law claim within 30 days, 60 days, or 90 days, depending on the warranty on the car. If your claim is successful, you may return the car immediately and get a full refund.
What Is the Used Car Buyer’s Bill of Rights in NJ?
The Used Car Buyer’s Bill of Rights in New Jersey, also known as Bill S1725 or Bill A3808 is a proposed legislature aimed at offering used car consumers better protection. It prohibits the sale of used vehicles on an “as is” basis to consumers.
While the bill is not yet a law, a NJ used car buyer is entitled to a warranty from the dealer as long as the purchase price is up to $3,000, the mileage is below 100,000, and the model age is not more than seven years. The warranty empowers the used vehicle buyer to seek legal relief if the car proves to be defective after a reasonable number of repair attempts. During the repair period, the buyer is to pay only $50 for the repair of each covered item.
