Sometimes, a faulty car rolls off the production line, causing headaches for everyone involved. Lawmakers recognize that buying a car is a significant investment, so they have enacted the Lemon Law to protect consumers from defective vehicles.
However, the specifics of the Lemon Law can vary significantly depending on your state.
In this article, we will cover everything you need to know about the Lemon Law in New Jersey, including its application to used cars. Yes, the law doesn’t just apply to new vehicles; it also extends to used ones.
Make sure to read until the end, as there are important clauses in the New Jersey Lemon Law that you need to understand.
Everything will be explained.
What is the New Jersey lemon law?
First of all, a car or a vehicle is termed a lemon when it has recurring and severe defects that significantly impact its safety, value, or usability, despite multiple repair attempts by the manufacturer.
Buying a car is a big financial commitment, and dealing with defects can be a major hassle and financial strain for you.
That’s where the New Jersey Lemon Law comes in. This law, passed by the New Jersey Legislature, is designed to protect you when your new car has repeated serious issues or is out of service for long periods within a certain timeframe or mileage.
The goal of the law is to make sure the manufacturer takes responsibility if your car turns out to be a lemon by providing you with specific remedies.
Does the New Jersey Lemon Law Applies to Used Cars?
Only a few states include used cars in their Lemon laws.
Luckily, New Jersey is one of them. The state provides coverage for used cars, but with certain time and mileage limits under its used car Lemon law.
Lemon Law For New Cars: Is Your New Car Covered?
If you buy, lease, or register a new passenger vehicle or motorcycle in New Jersey, the Lemon Law has you covered—given certain conditions are met.
Even if your vehicle is registered outside New Jersey but was purchased or leased in the state, you’re still protected by this law.
As mentioned earlier, New Jersey’s Lemon Law safeguards consumers against cars that develop major repeated defects or are out of service for extended periods.
Applicability Terms:
Let’s break down how the New Jersey Lemon Law applies to used cars:
Time Period:
You’re protected for two years from the vehicle’s original delivery date or the first 24,000 miles, whichever comes first.
If the vehicle changes hands during this two-year/24,000-mile window, the new owner or lessee is also covered by the Lemon Law.
Coverage Includes:
- Cars
- Trucks
- Motorcycles
- Authorized emergency vehicles
- Motor homes (excluding living quarters)
Coverage Excludes:
- Vehicles registered for commercial use
- Living quarters of motor homes
Defect requirements:
To qualify for relief, the defect must substantially impair the vehicle’s use, value or safety, or be a serious safety defect likely to cause death or serious bodily injury.
- Must be a “material defect” that significantly impacts the car’s safety, use, or value.
- Must be a defect that is covered under the warranty provided by the dealer.
Note: The New Jersey Lemon Law doesn’t cover defects resulting from accidents, vandalism, abuse, or neglect. It also excludes issues caused by anyone other than the manufacturer, its agent, or an authorized dealer.
Used Car Lemon law in New Jersey: Everything You Need to Know
Among other States like, New York, Connecticut, Massachusetts, and Texas, New Jersey also offers lemon law for used cars,
Note: If the vehicle is transferred to someone else during this two-year/24,000-mile period, that owner or the person leasing the vehicle is also covered under the Lemon Law.
However, The Used Car Lemon Law (U.C.L.L.) protects and assists consumers when they purchase used motor vehicles from licensed dealers, and the vehicles develop repeated problems with parts covered under the warranty. The law also requires dealers to provide a limited warranty based on the mileage of the vehicle at the time of purchase. This warranty must be provided at no extra charge and the dealer must repair the problems within the warranty period.
Here’s a breakdown of its key features:
Applicability Terms
Covers:
Covers used cars purchased or leased from a licensed dealer in New Jersey. This only applies to vehicles that meet ALL of the following criteria:
Included
- Passenger car, minivan, pickup truck, or SUV
- Seven years old or less from the model year at the time of purchase
- Purchase price of at least $3,000 before taxes and fees
- Mileage of 100,000 miles or less at the time of purchase
Excluded:
- Motorcycles
- Leased and commercial vehicles
- Motorhomes
- Private sales
- Total loss/ salvaged vehicles / flood-damaged vehicles
Warranty Requirements
If your vehicle meets these requirements, the dealer is required to provide you with a warranty. You should always ask your dealer to provide a written warranty while purchasing the car. which shall at least have the following minimum durations:
- 24,000 miles or less: 90 days or 3,000 miles, whichever comes first.
- Less than 60,000 miles: 60 days or 2,000 miles, whichever comes first.
- 60,000 to 100,000 miles: 30 days or 1,000 miles, whichever comes first.
Exclusions:
- The Used Car Lemon Law doesn’t cover repairs if they’re already included in a manufacturer’s warranty or recall program. It also excludes issues caused by misuse, negligence, or changes made by someone other than the original dealer.
- Repairs needed due to collisions, abuse, or failure to follow the manufacturer’s maintenance schedule aren’t covered either.
- Additionally, any defects caused by someone other than an authorized dealer or their agent trying to fix or modify the vehicle are not covered.
Important Things to Note about Lemon Law for Used Cars in New Jersey
- The law only covers repairs within the initial warranty period provided by the dealer.
- Like in the new car lemon law, the defect must be serious that significantly impacts the car’s safety, use, or value. The “material defect” requirement in New Jersey is interpreted more strictly than in other states.
Getting Your Vehicle Repaired
Report any defect or issue to the manufacturer or dealer right away. Keep all repair receipts and a detailed record of your interactions with both the manufacturer and dealer.
Each time you take your vehicle in for repairs, you have the right to receive a dated, detailed statement. This statement should list any charges for parts and labor, a general description of the problem, the odometer reading at drop-off and pick-up, and a list of all work performed. It should also include the dates when the vehicle was brought in and picked up.
Make sure you get these statements (it’s the law) and keep them on file.
Who Pays for the Repairs?
If your vehicle is under the original manufacturer’s warranty, the repairs are covered. Refer to your warranty booklet for specific details.
If repairs are needed after the warranty ends, you must pay for them. However, if the vehicle is later proven to be a “lemon” under the law, you can recover those repair costs, so keep your receipts.
If you’re leasing a vehicle, check your leasing contract to see who is responsible for repair bills.
Does Your Vehicle Qualify for Lemon Law?
To qualify as a lemon, your vehicle must have a defect covered under warranty that significantly impacts its use, value, or safety. Additionally:
- The dealer or manufacturer must have attempted to repair the same defect three or more times.
- OR, the vehicle must have been out of service for a total of twenty (20) cumulative calendar days due to a single issue or a series of problems with a covered item while the dealer tried to fix it.
Note: Like mentioned before, the Lemon Law does not cover defects caused by accidents, vandalism, abuse, or neglect.
When Can You File a Claim Under the Lemon Law?
To file a claim under the Lemon Law for your new car, you first need to give the manufacturer one last chance to fix the problem.
Here’s what you need to do:
- Send a Certified Letter: Write to the manufacturer (not the dealer) using certified mail with return receipt requested. In this letter, inform them that you may have a claim and that you’re giving them one final opportunity to repair the defect.
- Proof of Receipt: Make sure to keep the return receipt as proof that the manufacturer received your letter. This is important for your records.
- Repair Attempts: You can send this certified letter only after you’ve had at least two repair attempts for the same issue, or if your car has been out of service for 20 or more cumulative days due to one or more defects, and the issue still persists.
- Serious Safety Defects: If the problem is a “serious safety defect,” you can send the letter after just one repair attempt if the defect remains unresolved.
- Timing: Ensure the manufacturer receives your certified letter before the Lemon Law’s protection period ends. This period is either 2 years from the original delivery date or when the car reaches 24,000 miles—whichever comes first.
- Find the Manufacturer’s Address: Contact the Division of Consumer Affairs’ Lemon Law Unit to get the correct address for the manufacturer’s regional office where you should send your letter.
How Long Should the Final Repair Take?
The manufacturer has 10 calendar days from when they receive your certified letter to repair the vehicle. If this final repair attempt doesn’t resolve the defect, you can proceed with your Lemon Law application.
How do I file a lemon law application?
If your car’s issues persist despite multiple repair attempts, it’s time to file a Lemon Law application. Here’s how you can do it:
- Obtain the Application: Reach out to the Lemon Law Unit’s office to get an application form. Alternatively, you can download one from the Division’s website at www.NJConsumerAffairs.gov.
- Complete the Application: Fill out the application thoroughly. Along with your application, you need to include copies of all relevant documents for review.
- Prepare Your Documents: Make sure to send readable copies of the following documents:
- Vehicle registration
- Purchase order
- Lease or finance agreement
- Certified letter sent to the manufacturer
- Certified mail return receipt
- Any letters or emails exchanged with the dealer or manufacturer
- All repair bills
- Receipts for towing or rental cars
- Any other documents supporting your case
Keep in mind: When summarizing your warranty repairs, list them in the order they occurred. Clearly detail each defect on your application, focusing on the issues that remain unresolved. .
What if the Manufacturer Does Not Accept Your Lemon Law Claim?
If the manufacturer doesn’t accept your Lemon Law claim, you can have your case reviewed by an administrative law judge at the Office of Administrative Law. Here’s what you need to know:
Hearing Process: You can have your case heard without an attorney, but having one might be beneficial since the manufacturer will likely have legal representation. If you win, you could be awarded reasonable attorney’s fees. Keep in mind, the Lemon Law Unit does not provide legal representation.
Eligibility for a Hearing: To get a hearing, you need to meet all the requirements we discussed earlier, such as notifying the manufacturer in writing and giving them a final chance to fix the defect before the vehicle hits 24,000 miles or turns two years old, whichever comes first. Make sure you keep the certified mail receipt proving you sent this final-chance notice
What Costs Does the Law Cover in a Refund?
If you win, the manufacturer will have to buy back your vehicle and issue a refund. Your refund could cover:
- The purchase price or leasing costs of your vehicle
- Any finance charges
- The $50 Lemon Law application fee
- Reasonable attorney fees
- Vehicle repair costs
- Reasonable rental vehicle costs while your car is being fixed
- Towing costs
- Expert witness fees
However, it won’t cover:
- Sales taxes
- Car Title and registration fees, or any similar governmental charges
Deductions: A “reasonable allowance for vehicle use” will be subtracted from your refund. This amount is based on the total purchase price multiplied by the mileage when the defect occurred.
But, How to Make Sure that You Don’t End up Buying a Lemon?
Even though your state has been offering a coverage on cars under Lemon Law, the process of claiming through the law is time-consuming. You will have to hire a lawyer to process your claim properly. And even after all this, you may end up getting rejected.
While you can’t do much when you are after a new car, when it comes to used cars, it’s wise to verify that the car you fancy isn’t a lemon. So, how can you prevent yourself from getting a lemon?
Starting off, half of your concerns dissipate when you opt for an authorized dealer over a random one or a private seller. Keep in mind that the Lemon law across the US, extends its coverage exclusively to used cars purchased through certified dealers that provide warranty on the vehicle.
For an added layer of security, opting for a Certified Pre-Owned (CPO) vehicle makes a lot of sense. CPO vehicles are exclusively available at franchised dealerships like Schumacher Used in New Jersey.
CPO Program Benefits:
- 172-Point Certified Pre-Owned Inspection & Reconditioning Process
- CARFAX® Vehicle History Report
- Bumper-to-Bumper Warranty Coverage (12-Months / 12,000 Miles)
- Powertrain Limited Warranty (6-Year / 100,000 Miles)
- 2 Years / 24,000 Miles of Complimentary Scheduled Maintenance
- Roadside Assistance & Courtesy Transportation
- Vehicle Exchange Program
- OnStar® Limited Trial
- SiriusXM All Access Trial Subscription
Yes, A CPO certification does require you to pay a slight premium, but with such a comprehensive inspection and vehicle history report, you can ensure that the car you’re buying is in a good condition. Moreover, the warranty offered ensures that even if there’s some issue that comes up within the period, it will be rectified and repaired by the dealer. That’s how you can protect yourself from buying a lemon.
