New Jersey Lemon Law for Used Cars

Are you beginning to think that the used car you bought might be a lemon? If the used car or truck you just purchased has defects that can't be repaired, you might be able to get relief under New Jersey's Used Car Lemon Law.

What Is the New Jersey Lemon Law for Used Cars?

New Jersey's Used Car Lemon Law protects consumers who purchase used cars from New Jersey licensed car dealerships. (N.J. Stat. § 56:8-67 and following). This law requires:

• a used car dealer to provide a consumer with a warranty, the length of which depends on the used car's mileage, and
• a car dealer to repair any defective or malfunctioning part of the used car that's covered during the warranty period. (N.J. Stat. § 56:8-69, § 56:8-70).

What Is Covered By and Not Covered By the New Jersey Lemon Law?

The law covers used passenger cars, purchased from a licensed car dealership, which are seven model years old or less. The purchase price of the car must be at least $3,000, and the mileage can't be more than 100,000 miles at the time of purchase. (N.J. Stat. § 56:8-76).

The New Jersey Used Car Lemon Law specifically excludes the below cars from protection:

• used cars sold for less than $3,000
  
• used cars that are more than seven model years old
• used cars that an insurance company has declared a total
  loss
  
• used cars with odometer readings of more than 100,000 miles
• motorcycles, off-road vehicles, and motor homes
• leased vehicles
• used cars that weren't purchased from a dealer, and
  
• used cars sold "as is." (N.J. Stat. § 56:8-76, § 56:8-67).

Length of the Warranty

If your vehicle satisfies the above requirements, the car dealer must provide you with a warranty. The length of the warranty will depend on the used car's mileage.

• If a motor vehicle has 24,000 miles or less on its odometer, the car dealer must provide you with a warranty for 90 days or 3,000 miles, whichever comes first.
• If a motor vehicle has more than 24,000 miles but less than 60,000 miles on its odometer, the car dealer must provide you with a warranty of 60 days or 2,000 miles, whichever comes first.
• If a motor vehicle has between 60,000 and 100,000 miles on the odometer, the car dealer must provide you with a warranty for 30 days or 1,000 miles, whichever comes first. (N.J. Stat. § 56:8-69).

The amount of time it takes for the dealer to begin or complete repairs of the defect doesn't count against your warranty period. (N.J. Stat. § 56:8-72).

Also, it's important to note that in negotiating a better price for a used car, you may waive your right to a warranty. But to do so, the vehicle must have more than 60,000 miles on its odometer, and the waiver must be in writing. (N.J. Stat. § 56:8-73).

What Types of Problems Does the New Jersey Used Car Lemon Law Cover?

The New Jersey Used Car Lemon Law requires a car dealer to correct a "material defect" of a covered item of the used car if the defect occurred during the warranty period. A material defect is defined as a malfunction of a used motor vehicle, subject to the warranty, which substantially impairs its use, value, or safety. (N.J. Stat. (N.J. Stat. § 56:8-67, § 56:8-70, § 56:8-71).

The covered parts include:

• Engine. All internal lubricated parts, timing chains, gears and cover, timing belt, pulleys and cover, oil pump and gears, water pump, valve covers, oil pan, manifolds, flywheel, harmonic balancer, engine mounts, seals and gaskets, and turbo-charger housing (Housing, engine block, and cylinder heads are covered only if they are damaged by the failure of an internal lubricated part.)
• Transmission Automatic/Transfer Case. All internal lubricated parts, torque converter, vacuum modulator, transmission mounts, seals, and gaskets.
• Transmission Manual/Transfer Case. All Internal lubricated parts, transmission mounts, seals and gaskets (excluding manual clutch), pressure plate, throw-out bearings, clutch master, or slave cylinders.
• Front-Wheel Drive. All internal lubricated parts, axle shafts, constant velocity joints, front hub bearings, seals, and gaskets.
• Rear-Wheel Drive. All internal lubricated parts, propeller shafts, supports and U-joints, axle shafts and bearings, seals, and gaskets. (N.J. Stat. § 56:8-67).

If you suspect that your used car has a defect, you must notify the car dealer right away and be sure to keep a complete record of your receipts and communications with the car dealer. You will be responsible for paying a $50 deductible for each repair of each covered item. (N.J. Stat. § 56:8-70).

What Qualifies as a Lemon Used Car in New Jersey?

Under the law, you must allow a car dealer a reasonable amount of time to repair or correct the defect. A used car will be deemed a lemon only if:

• the car dealer has been unable to fix the used car after three attempts or
• the car has been out of service for a total of 20 cumulative calendar days for a single problem or a series of problems. (N.J. Stat. § 56:8-71).

You must also be able to prove that the car's defect substantially impairs its use, value, or safety.

What Are Your Rights If You Have a Lemon?

If the car dealer can't repair the defect, the dealer must, at your option, replace or refund the full purchase price of the car (less sales taxes, title and registration fees, and a reasonable deduction for excessive wear and tear and personal use of the car). (N.J. Stat. § 56:8-71).

If the car dealer refuses to replace or refund the full purchase price of the used car, you might be eligible for relief under the Lemon Law. You can:

• request dispute resolution (a hearing) through the New Jersey Lemon Law Unit
• file a lawsuit in the Superior Court of New Jersey, or
• try to work something out through the dealer's informal dispute resolution program (if it has one).

However, before you can file a claim under the Lemon Law, you must give the manufacturer one final opportunity to repair the defect after at least two repair attempts. Send a letter to the manufacturer (not the dealer) by certified mail, return receipt requested, saying you might have a claim and you're giving the manufacturer one last chance to repair the defect.

How to File a Lemon Law Claim in New Jersey

If you think your used car is a lemon, you can file a claim with New Jersey's Lemon Law Unit. Filing a claim under New Jersey's Used Car Lemon Law is free. (But you have to pay a $200 filing fee if you file a case in Superior Court.)

What Are the Next Steps After Filing a Lemon Law Claim in New Jersey?

After your case is approved and you pay the fee, a copy of the application is mailed to the dealer. If the case can't be resolved, you're then contacted to set a hearing date, usually within 20 days of application acceptance, based on the days the Office of Administrative Law (OAL) has available. (Your case will be heard before an administrative law judge in the OAL.) The OAL also gets a copy of the application.

The administrative law judge will make an initial decision within 20 days of the hearing. Then, the Director of Consumer Affairs will issue a final decision within 15 days of the initial decision, which adopts, rejects, or modifies the initial decision.

What Are the Evidence Requirements for a Lemon Law Claim in New Jersey?

At the hearing, you'll need to explain to the judge why you think your vehicle is a lemon. You will also need documentation of the defect and proof of your attempts to have the defect repaired.

For example, you might need to provide repair invoices, your certified letter to the manufacturer, and the certified mail return receipt, any letters or emails between you and the dealer or manufacturer, and any other documents that might help support your case.

Tips for Filing a Successful Lemon Law Claim in New Jersey

Along with providing all documentation relevant to your claim, consider using an expert witness or other witnesses who can substantiate your claim and help strengthen your case.

Also, while it isn't required, consider hiring an attorney to represent you in the process. The hearing is quasi-judicial, and it can be to your advantage to have a lawyer present.

What Remedies Are Available under the New Jersey Lemon Law?

If your vehicle qualifies as a lemon under the law, the dealer must buy the car back from you and refund the full purchase price to you (or the lienholder, if applicable), less sales taxes, fees, and deductions for excessive wear and tear and personal use of the vehicle. (N.J. Stat. § 56:8-71).

Or you might be offered a replacement vehicle.

What Are the Appeal Rights for a Lemon Law Claim in New Jersey?

You can file an appeal in the Appellate Division of Superior Court (609-292-4822) within 45 days of receipt of the final decision.

How to Get Help Filing a Lemon Law Claim in New Jersey

The New Jersey Lemon Law Unit won't hear your case or represent you at the hearings, which are conducted in a quasi-judicial setting in conjunction with the OAL. But the Lemon Law Unit can answer questions if you call the staff at 973-504-6226 or email [email protected].

In addition, you can contact the New Jersey Division of Consumer Affairs at 800-242-5846 and file a complaint with that office.

Also, consider talking to a lawyer.

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Talk to a Lawyer

You may represent yourself at the Lemon Law hearing or you can hire a lemon law or consumer protection lawyer to help you.

If you'd like to file a lawsuit, talk to a consumer protection attorney. (Once you file a civil action or a court issues a decision, you can no longer use the Lemon Law program.)