New Jersey Lemon Law
New Jersey Lemon Law (new vehicles) and Used Car Lemon Law (N.J. Stat. Ann. §§ 56:12-29 to 56:12-49 (new); §§ 56:8-67 to 56:8-80 (used)). If your new or used vehicle has a substantial defect the dealer can't fix, you may be entitled to a refund, replacement, or cash settlement. The manufacturer pays the legal fees — you pay nothing out of pocket.
What's distinctive
How New Jersey's lemon law is different
New Jersey is one of only a handful of states with both a strong new-car lemon law and a parallel used-car lemon law that mandates dealer warranties on a tiered scale. The Division of Consumer Affairs runs its own state arbitration program (not BBB AUTO LINE), and decisions are binding on manufacturers. The notice and ten-day final-repair opportunity in N.J.S.A. 56:12-32 must be sent by certified mail before the presumption attaches.
Used vehicles
New Jersey has a separate Used Car Lemon Law (N.J.S.A. 56:8-67 et seq.) requiring dealers to provide written warranties on used vehicles sold for more than $3,000 that are seven model years old or less and have 100,000 miles or fewer. Warranty length is tiered: 90 days/3,000 miles for vehicles with 24,000 or fewer miles at sale; 60 days/2,000 miles for 24,001 to 59,999 miles; 30 days/1,000 miles for 60,000 to 100,000 miles. A refund is available after three failed repair attempts or 20 cumulative days out of service.
Leased vehicles
Leased vehicles are expressly covered. The lessee receives a refund of payments made plus capitalized cost reduction; the lessor is reimbursed for the vehicle, and early-termination charges from the lessor cannot be passed to the consumer.
Mileage offset on a refund
Refund is reduced by an allowance for use equal to (purchase price x miles driven at first presentation for repair) / 100,000. Purchase price includes sales tax, license and registration fees, finance charges, and similar collateral charges.
Arbitration requirement
Consumers may apply to the state-run New Jersey Lemon Law Arbitration Program operated by the Division of Consumer Affairs. Decisions are binding on the manufacturer; the consumer may appeal to Superior Court. Filing fee is $50 (refundable if the consumer prevails).
Civil penalty / extra damages
Under N.J.S.A. 56:12-42, a consumer who prevails in court may recover reasonable attorneys' fees, costs, and expert fees. Violations can also be pursued as Consumer Fraud Act claims under N.J.S.A. 56:8-19, which authorizes treble damages.
Areas served in New Jersey
- Newark
- Jersey City
- Paterson
- Elizabeth
State consumer-protection resource
New Jersey Division of Consumer Affairs, Lemon Law Unit
https://www.njconsumeraffairs.gov/llu/Pages/default.aspx →Common questions
New Jersey lemon law, in plain English
Does New Jersey's lemon law cover me?
The new-car lemon law (N.J.S.A. 56:12-29 et seq.) covers passenger vehicles, motorcycles, and motor homes (excluding the recreational living portion) purchased, leased, or registered in New Jersey, where the defect occurs within 24 months or 24,000 miles of original delivery, whichever comes first. The used-car lemon law (N.J.S.A. 56:8-67 et seq.) covers used vehicles purchased from a dealer for more than $3,000 that are seven model years old or less and have 100,000 miles or fewer at the time of sale. Vehicles bought from private individuals or sold 'as is' under a permitted waiver fall outside the used-car statute.
How many repair attempts before I can file in New Jersey?
For new vehicles, N.J.S.A. 56:12-31 creates a presumption of a reasonable number of attempts when, within 24 months or 24,000 miles, the same nonconformity has been subject to repair three or more times by the manufacturer or its dealer and continues to exist, or the vehicle has been out of service for repair for a cumulative 20 or more calendar days. Before the presumption attaches, the consumer must send the manufacturer written notice by certified mail and give it one final ten-day opportunity to cure. The used-car statute uses the same three repairs / 20 days threshold within the applicable warranty tier.
Are used cars covered under New Jersey lemon law?
Yes. The Used Car Lemon Law at N.J.S.A. 56:8-67 et seq. requires every dealer-sold used vehicle priced above $3,000, seven model years old or less, and with 100,000 miles or fewer to come with a written warranty. Warranty duration depends on mileage at sale: 90 days or 3,000 miles for 24,000 miles or under; 60 days or 2,000 miles for 24,001 to 59,999; and 30 days or 1,000 miles for 60,000 to 100,000. The dealer must repair covered components or refund the price after three failed attempts or 20 cumulative days out of service.
Are leased vehicles covered in New Jersey?
Yes. N.J.S.A. 56:12-32 expressly covers lessees, and the statute coordinates the buyback so the lessee receives all monthly lease payments and capitalized cost reductions, while the lessor is paid out for the residual investment in the vehicle. Lease early-termination charges may not be charged to the consumer when the buyback is the result of a lemon law remedy. The same 24-month/24,000-mile coverage window, three-repairs-or-20-days threshold, and use offset apply to leased vehicles as to purchased ones.
How long do I have to file in New Jersey?
N.J.S.A. 56:12-33 requires that an arbitration application be filed within the later of the two-year/24,000-mile lemon law coverage period or the duration of the manufacturer's express warranty. A separate civil action in Superior Court is generally subject to the four-year UCC limitations period under N.J.S.A. 12A:2-725 for warranty claims and the six-year limitations period under N.J.S.A. 2A:14-1 for Consumer Fraud Act claims. Practically, you should pursue arbitration or file suit promptly after the third repair attempt or the 20th day out of service.
Do I have to go through arbitration before suing in New Jersey?
No. Consumers may choose between the state-administered New Jersey Lemon Law Arbitration Program run by the Division of Consumer Affairs and a direct civil suit. The state program is binding on the manufacturer, requires a $50 filing fee (refundable if you prevail), and typically resolves cases within about 60 days. A manufacturer's private informal dispute settlement procedure (such as BBB AUTO LINE) may not be required as a precondition to filing under New Jersey's program, although completing one preserves the consumer's claim.
What's the difference between New Jersey's statute and federal Magnuson-Moss?
The New Jersey lemon law sets fixed numerical presumptions (three repair attempts or 20 days out of service within 24 months/24,000 miles) and offers a state-administered arbitration program with binding outcomes, a refund formula tied to the 100,000-mile use allowance, and access to attorney fees. The federal Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) is a broader written-warranty statute with no fixed repair count or coverage cap and applies to almost any consumer product. Many New Jersey consumers plead both, because Magnuson-Moss can capture vehicles outside the 24/24 window.
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