New Jersey Lemon Law Info – NJ Lemon Law Attorneys

What is the Lemon Law in New Jersey?

Step 1: Determine whether New Jersey ‘New Car’ Lemon Law covers your car

  1. Is your Car New or Used? New Jersey ‘New Car’ Lemon Law applies to new passenger vehicles, SUVs, vans, trucks or motorcycles that are purchased, leased, or registered in New Jersey. New Jersey Lemon Law also covers if you bought your vehicle used as long as repairs for the defects took place within two years or 24,000 miles of the original purchase (whichever comes first).
  2. Did the defects occur during the ‘Lemon Law Period?’ New Jersey Lemon Law for new vehicles is generally time-limited. It applies during the two years or 24,000 miles of the original delivery (whichever comes first).
  3. Is the problem covered? New Jersey Lemon Law covers any defect or condition which substantially impairs the use, value or safety of a motor vehicle.  As such, the problem does not necessarily need to be covered under the manufacturer’s warranty to qualify. However, aftermarket parts/installations typically aren’t covered. However, a serious safety defect likely to cause death or serious bodily injury is certainly covered.
  4. Is the car problem substantial? Does it affect your use, safety, or value of the car to you.  Noises, squeaks, rattles etc. are typically not covered.
  5. Do you have enough repairs? New Jersey Lemon Law presumes a car to be a lemon if during the first two years or 24,000 miles the same problem was
    • Repaired at least three times for same defect, and you provided manufacturer with a written notice of an opportunity to repair, and same defect still exists, or
    • The vehicle is out of service for at least 20 or more cumulative days due to same or different repairs, and you provided manufacturer with a written notice of an opportunity to repair, and same defect still exists.

The notice of a final opportunity to repair must be sent via certified mail, return receipt requested, and may be sent after at least two repair attempts for the same defect, or 20 cumulative days out of service for one or more defects, and the defect still exists. In the case of a “serious safety defect,” the letter can be sent after a single repair attempt and the defect still exists.

6. Does the car use qualify it for New Jersey Lemon Law? In order to qualify, the car must be used primarily for personal, family or household purposes. 

New Jersey Revised Statutes Section 56:12-29 to 56:12-70 is the state’s lemon law. The exact text of the law is available by clicking here.

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Step 2: Determine What Relief You Can Get Under New Jersey Lemon Law

New Jersey Lemon Law provides several options for a successful consumer.

  1. You may be awarded a replacement with an identical or comparable vehicle (it is the manufacturer’s responsibility to ensure that any lien on the
    returned vehicle is transferred to the replacement vehicle).
  2. You may be awarded vehicle repurchase and refund of the moneys you paid, which can include:
    • A refund of the contract price (or in case of lease, refund of the amount actually paid by the consumer under the lease agreement).
    • Costs of options added by the manufacturer or dealer within 30 days of the original delivery date.
    • Cost of sales tax, license and registration fees, and finance charges.
    • Towing.
    • Cost of vehicle repairs that you paid for.
    • Cost of renting a similar vehicle while yours was out of service.
    • Attorney’s fees.
    • Expert witness fees.
    • Lemon law filing fee.
    • Any other out-of-pocket expenses or costs you incurred that are reasonably connected to manufacturer’s failure to repair your car.

Note that New Jersey Lemon Law allows manufacturer to reduce your refund by a reasonable allowance for your vehicle use (applies to a refund but not to a replacement). Such reasonable allowance for use is computed by multiplying mileage at the time you first presented vehicle to dealer or manufacturer for correction of a nonconformity times the contract or lease price and dividing that figure by 100,000.

If the vehicle you leased is repurchased by the manufacturer, your lease agreement with the motor vehicle lessor is terminated and no penalty for early termination is assessed.

Step 3: Hire a Lawyer – No Cost to You

In a perfect world, you would not need a lawyer in a lemon law case.  Except one thing: every vehicle manufacturer will be represented by a law firm or a trained professional specializing in lemon law.  Corporations can’t represent themselves, so they oftentimes will have one or two lawyers for every case, plus an expert mechanic. So we think you always hire a lawyer for a lemon law case. Always.

Under the New Jersey Lemon Law (New Jersey Revised Statutes Sections 56:12-36, 56:12-42 & 56:12-83), when you prevail, the manufacturer will be required to pay your lemon fees. So our firm and others like it take these cases on contingency – at NO COST TO YOU.

Like anything else, lawyers who do this kind of work know the laws and regulations. Most cases get resolved without the need for filing either arbitrations or litigations.  We ensure that all paperwork and legal filings meet the requirements and prevent any procedural errors or documentary errors that could weaken a case.

More often than not, the manufacturer will settle; if not, though, we recommend a lawsuit or arbitration.

Step 4:  Choose Your Forum

There are 3 ways to get what you want in a lemon law case.

  1. Negotiation. Most lemon law situations are resolved pre-suit between lawyers working for consumers or sometimes the consumers themselves and the manufacturers. This is by far the quickest, most efficient and least expensive way to proceed.
  2. Arbitration. New Jersey Division of Consumer Affairs runs a Lemon Law Arbitration program. We’ve represented consumers in arbitrations through the program and such program is a feasible alternative to a lawsuit that may drag on for years.
  3. Lawsuits. We have filed numerous lawsuits in New Jersey Superior Court representing consumers in lemon law cases.  Lawsuits can drag out for years, so for consumers with qualifying lemon law cases, our standard suggestion is to attempt negotiation first, followed by arbitration, and leave litigation as an option of last resort.

As to pursuing an arbitration, you have two choices: use the Division of Consumer Affairs’ Automotive Dispute Resolution Program, or use the manufacturer’s dispute settlement program.

The Dispute Resolution Program allows you to have your case heard by an administrative law judge in the Office of Administrative Law. Once your application is accepted, your hearing will be scheduled within 20 days. Likewise, a decision will be issued within 20 days of your hearing. The director of the Division of Consumer Affairs can accept, modify, or reject the decision. If no action is taken by the director, the decision of the administrative law judge becomes final.

You or the manufacturer can file an appeal in superior court within 45 days of the final decision.

Who pays Legal Fees under New Jersey Lemon Law?

The manufacturer. New Jersey Revised Statutes Sections 56:12-36, 56:12-42 & 56:12-83 instruct a court or an arbitrator to award “reasonable attorney’s fees” to a consumer who prevails in a lemon law case.

Who are we? We are Lemberg Law, a Consumer Law Firm

Lemberg Law is a consumer law firm helping victims of bad manufacturing and run-arounds from auto companies. We are ranked A+ by the BBB. Call our Helpline today!  There is no charge unless we win.

Does the New Jersey Lemon Law apply to used cars?

New Jersey has a Lemon Law covering cars bought used.  New Jersey Used Car Lemon Law requires dealer to provide warranties on every used car that is sold for more than $3,000, that is seven (7) years old or less, has not been declared a total loss by an insurance company and has an odometer reading of 100,000 miles or less. If the dealer is unable to fix your car after three or more tries, or if the vehicle is out of service by reason of repair more than 20 days, you may be able to receive a full refund.  The length of warranty coverage that dealer must give you depends on the vehicle milage at time of purchase:

  • under 24,001 miles – 90 days or 3,000 miles*
  • 24,000-59,999 miles – 60 days or 2,000 miles*
  • 60,000-100,000 miles – 30 days or 1,000 miles*

[* whichever comes first]

If the car has over 100,000 miles, the New Jersey Used Car Lemon Law does not obligate dealer to issue a written warranty. Thus, if a used vehicle is purchased ‘as is’ and without a warranty, it cannot qualify as a lemon under the New Jersey Lemon Law.

Note that in negotiating a better price for the vehicle, you may waive their right to a warranty. However, the vehicle must have more that 60,000 miles on its odometer and the waiver must be in writing. Also, New Jersey Used Car Lemon Law excludes repairs that are covered by any manufacturer’s warranty or recall program. Finally, the New Jersey Used Car Lemon Law does not cover motorcycles, leased vehicles, private sales, lessees who buy out their leased vehicles, and total loss / salvaged vehicles / flood-damaged vehicles.

What’s the exact text of the New Jersey Lemon Law for Used Cars?

The exact text of the law is available by clicking here.

Do I have rights if my vehicle has gone past the Lemon Law period?

Absolutely. Even if your vehicle has gone past 2 years or 24,000 miles to qualify under New Jersey New Car Lemon Law, or beyond 100,000 miles to qualify under New Jersey Used Car Lemon Law, there are still Federal and State warranty laws that may protect you. And chances are, we can help you.

For instance, there is a Breach of the Implied Warranty of Merchantability claim.  A consumer who buys a car may be able to sue if she shows the car was unmerchantable at the time of sale.  A car buyer may also sue for Revocation of Acceptance.  Consumers have the right under the Uniform Commercial Code to “revoke acceptance” of the vehicle (New Jersey Revised Statute 12A:2-608) and argue that the vehicle’s defects substantially impaired its value.  Finally, there is the New Jersey Unfair Trade Practices Act, also known as the Consumer Fraud Act, found in Title 56, Chapter 8, Section 1 et seq. of the Statutes.  The claim would be that by selling a defective car, the dealer and manufacturer engaged in “unfair and deceptive” practices.

Template Lemon Law Demand Letter

Most lemon law cases begin with a demand letter to the manufacturer. We’ve created a sample that suits this purpose in most circumstances, although please understand that this isn’t legal advice and we don’t bear any responsibility for its accuracy. Here’s a sample demand letter that you can adapt for your use.

Case Studies – Lemberg Law Cases

Case Study 1: Our client bought a new 2022 model year mid-size SUV. Within two years and 13,000 miles of taking delivery of the vehicle, our client experienced repeat instances of the vehicle’s engine stalling while driving, resulting in four visits to the dealership. Client complained of all the aforementioned malfunctions, wanted vehicle repurchased.

Our office mailed to the manufacturer a statutory notice of an opportunity to repair, but manufacturer refused to undertake an opportunity to repair and refused to repurchase the defective car.

Lemberg Law then initiated an arbitration with New Jersey Division of Consumer Affairs. Subsequently, and prior to the arbitration hearing, the manufacturer yielded to our client’s demand and agreed to a settlement on terms favorable to our client.

Case Study 2: Our client bought a new 2014 model year full-size SUV. Within two years and 24,000 miles of taking delivery of the vehicle, our client experienced repeat instances of the vehicle’s engine stalling while driving and vehicle not starting, resulting in eight visits to the dealership and vehicle being out of service for 60 days.

Our office mailed to the manufacturer a statutory notice of an opportunity to repair.  Although manufacturer initially responded to Lemberg Law’s inquiries, the manufacturer soon stopped to respond. Lemberg law then prepared and initiated arbitration with New Jersey Division of Consumer Affairs. When both parties appeared at the arbitration hearing, the manufacturer yielded to our client’s demand and agreed to a settlement on terms favorable to our client.

Comparison with Other Laws

Overall, New Jersey is a favorable place to bring a Lemon Law case. It covers both new and used cars and motorcycles, and does so a full 2 years or 24,000 miles.  In contrast, lemon law in Connecticut covers new and used cars and motorcycles for the same period: first 24 months or 24,000 miles (and under certain circumstances longer), but does not require that manufacturer receive a ‘written notice of an opportunity to repair.’ New Jersey, just like Connecticut, has a ‘safety’ exception (only two repairs), which isn’t available either in New York or Massachusetts.  Overall, Connecticut and New York offer comparable protection in terms of the duration of coverage (New York covers for first 24 months but only up to 18,000 miles), but do so without requiring giving a manufacturer a written notice of an ‘opportunity to repair,’ which can be seen as better for the consumer.  Massachusetts, while offering a shorter coverage period, provides quick resolution due to its lower threshold for days out of service.  The “better” law may depend on the specific needs and circumstances of the vehicle owner.

Important cases – Important Legal Developments

Singer v. Toyota Motor Sales, U.S.A., Inc.  In this case, a lessee of a Lexus brought action for breach of warranty, New Jersey Lemon Law and the Consumer Fraud Act, claiming that dealer failed to make a timely repair following a recall notice. Specifically, in January 2020, manufacturer issued a safety recall for a fuel pump which may stop operating. If this were to occur, the engine could stall and not restart.  The recall notice provided a timetable estimating the date Lexus would be able to carry out the recall repairs due to unavailability of parts. The estimated date for lessee’s vehicle was late May 2020. Lessee became aware of the recall shortly after its issuance and contacted a Lexus dealer. Because the parts to implement the recall were not yet available, lessee left the vehicle with the dealer and received a loaner vehicle.

Ultimately, the fuel pump in the lessee’s vehicle was replaced in June 2020. When Lexus representative contacted lessee and informed him the fuel pump was replaced and the Lexus was ready for pickup, lessee refused to pick up the vehicle claiming it was a “lemon.”  After lessee sized making lease payments in February 2020, lessor repossessed the vehicle in December 2020.  Lessee filed suit claiming his Lexus was a lemon due lack of a timely repair following issuance of a recall notice.  The trial court entered judgment in favor of the manufacturer. Lessee appealed.

The Superior Court of New Jersey, Appellate Division, upheld the trial court’s ruling. First, the Appellate Court ruled that a vehicle buyer or lessee cannot rely on a vehicle recall notice alone to establish a vehicle nonconformity under the Lemon Law, and recall notice for lessee’s vehicle alone was insufficient to establish the nonconformity. Second, lessee’s fear that defect described in recall notice would manifest itself was insufficient to establish the nonconformity required to recover under the Lemon Law. In other words, issuance of a recall because the fuel pump may potentially become defective does not necessarily mean the fuel pump in the lessee’s vehicle had actually failed or was presently suffering from a nonconformity. Lessee did not present any evidence that there was any issue with vehicle, mechanical or otherwise, aside from existence of recall. Finally, even if lessee had proven nonconformity, vehicle constituted a commercial automobile, precluding recovery under Lemon Law.

Selman v. Jaguar Land Rover North America, LLC. In this case a consumer appealed a judgment entered in favor of the vehicle manufacturer to the Superior Court of New Jersey, Appellate Division. The suit arose from a lease of a new 2010 Jaguar XF. Following taking delivery of the vehicle, lessee returned the vehicle to the dealer eight times complaining of an intermittent vibration in the steering system. During several visits, the dealer found a wheel rim was slightly bent and repaired it. The dealer also applied anti-friction lube and renewed the vehicle’s power steering transducer. On other occasions, the dealer could not replicate any steering system vibration.

Lessee then filed suit alleging breach of New Jersey Lemon Law and breach of warranties. The trial court found the lessee failed to present any evidence of the claimed vibration or wheel shimmy that constituted nonconformities as defined by the Lemon Law and entered judgment in the manufacturer’s favor.  The Appeals Court agreed.  The Appeals Court noted that to prevail under the New Jersey Lemon Law, a consumer must produce evidence of the nonconformity, where “nonconformity” means a defect or condition which substantially impairs the use, value or safety of a motor vehicle. The Appeals Court commented that during his first year of ownership the lessee drove the vehicle in excess of 23,000 miles, apparently unhampered by the claimed defect. Moreover, despite the replication of conditions as described by the lessee, neither the dealership nor the lessee’s own expert could trigger the vibration. In addition, multiple repairs made in response to a complaint about a flaw in the steering system were centered on bent wheel rims resulting from misuse. As such, consumer failed to present any evidence of a defect.

    Hiring a Lemon Law Lawyer in New Jersey

    Wherever you are in the lemon law claim process, we’re happy to help. Whether you need help gathering the material documenting your lemon, submitting the final demand letter, negotiating a settlement, or appealing the arbitration decision, Lemberg Law will be at your side every step of the way.

    Helping consumers is what we do. We’ve helped more than 15,000 people recover more than $35 million. You can read more about us here.

    Remember that vehicle manufacturers have teams of lawyers that do nothing but fight lemon law claims. Lemon laws try to level playing field by forcing automakers to pay the consumer’s attorney fees in successful lemon law claims. That’s why our representation won’t cost you a dime.

    There’s a limited window of opportunity for filing a lemon law claim. If you suspect you have a New Jersey lemon, give us a call today. We understand your frustration, and will do our best to deliver the justice you deserve.

    What Happens When You Hire a Lemon Law Lawyer?

    A good lemon lawyer will work on your behalf to get the compensation to which you’re entitled – typically in the form of a refund, a replacement vehicle, or a cash settlement. Your Lemon Law attorney will ask you for all of your records, such as repair orders and correspondence, that pertain to your lemon. Your lawyer will conduct a thorough investigation of your vehicle’s repair history, then present the manufacturer with a statement outlining your case and demanding full recovery. More often than not, the manufacturer will settle. If not, though, your Lemon Law attorney should be prepared to sue the manufacturer. Your lawyer should be able to resolve your case within one to two months.

    New Jersey Lemon Law FAQs

    Does New Jersey Lemon Law Cover Leased Vehicles?

    Most of the time, yes. New leased vehicles are covered by New Jersey Lemon Law under New Jersey Revised Statutes Section 56:12-29 to 56:12-70. If you leased a new Lemon from a NJ dealer, you may still be entitled to compensation by the manufacturer. However, used leased vehicles are not covered by the Lemon Law in New Jersey. 

    Does New Jersey Lemon Law Apply to Private Sales?

    No. Unfortunately, the New Jersey Used Car Lemon Law does not apply to vehicles purchased through private sales. According to the New Jersey Division of Consumer Affairs, the law only covers vehicles that were bought or leased from licensed New Jersey dealers.

    Are Appliances Covered Under New Jersey Lemon Law? 

    New Jersey Lemon Law does not specifically cover appliances. However, the federal Magnuson-Moss Warranty Act, also known as the “federal lemon law,” can still protect those who have purchased Lemon appliances in New Jersey.

    Why won’t the dealer or carmaker just refund my money or provide a replacement vehicle if they know Lemon Law exists?

    It would be nice for dealers and manufacturers to recognize their fault and compensate the buyer fairly on their own. However, they usually try to avoid refunding and replacing Lemons without legal intervention. Since it costs them money to deal with Lemons, they often use delay tactics and alternative “resolution mechanisms” to avoid having to fix the problem until the Lemon Law period expires. These tricks are the reason states passed Lemon Laws in the first place!

    Your Lemon Law Legal Rights

    Think you have a lemon? Contact our firm! Sit back and let our experts work out your lemon case at no cost to you. The law makes car manufacturers pay legal fees. Every year, auto manufacturers buy back, replace or pay cash settlements to thousands of ‘lemon’ owners like you. Get your lemon out of your life!

     

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