Used Car Lemon Law

consumerbrief

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

Used Car

Lemon Law

Your road to relief

With each passing day you’re beginning to fear that

you’ve got a lemon on your hands. Are you stuck with

it? Maybe not. New Jersey’s Used Car Lemon Law

provides protection for those who buy used cars in

New Jersey. If you think your vehicle may qualify after

reading this Consumer Brief, please contact the Lemon

Law Unit to get started on your Road to Relief.

WHY CHOOSE THE LEMON LAW UNIT?

■ It’s much quicker! – The Lemon Law process has

special deadlines which must be met in order to

ensure quicker handling of your case. Going to

Superior Court could take considerably longer.

■ An attorney is not required – You may

represent yourself at the hearing. If you

choose to retain an attorney, please be

aware that attorney fees will not be part

of your refund if the case is decided in your favor.

■ Cases are scheduled at your convenience – Cases

are scheduled at a date, time and location that is

most convenient for you, whether it be Newark,

Trenton or Atlantic City.

■ There is no ﬁling fee – Filing a claim under the Used

Car Lemon Law is free. However, there is a $200 ﬁling

fee when you ﬁle a case in Superior Court.

■ Lemon Law staff are ready to assist you – While

the Unit does not provide legal representation,

staff are available by phone (973-504-6226) or

e-mail (lemonlaw@dca.lps.state.nj.us) to answer

your questions quickly.

WHAT IS COVERED BY THE LAW?

The law, which covers only used passenger motor vehicles

purchased from licensed used car dealers, requires used

car dealers to provide their customers with warranties.

The length of the warranty depends on the used motor

vehicle’s mileage. If:

■ a motor vehicle has 24,000 miles or less on its

odometer, the dealer must provide the customer

with a warranty for 90 days or 3,000 miles,

whichever comes ﬁrst.

■ a motor vehicle has more than 24,000 miles but

less than 60,000 miles on its odometer, the dealer

must provide the customer with a warranty for 60

days or 2,000 miles, whichever comes ﬁrst.

■ a motor vehicle has between 60,000 and 100,000

miles on its odometer, the dealer must provide the

customer with a warranty for 30 days or 1,000

miles, whichever comes ﬁrst.

Note: In negotiating a better price for the vehicle,

consumers may waive their right to a warranty.

The vehicle must have more than 60,000 miles on

its odometer and the waiver must be in writing.

WHAT IS NOT COVERED BY THE LAW?

■ Motor vehicles sold for less than $3,000

■ Motor vehicles which are more than seven (7)

model years old

■ Motor vehicles that have been declared a total

loss by an insurance company

■ Motor vehicles that have odometer readings of

more than 100,000 miles

■ Motor vehicles that were not purchased from a dealer

■ Motor vehicles that were sold “As Is.”

used-car-lemon-law • Revised 01/04/24

Continued

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

WHAT PARTS ARE COVERED?

The statute requires a dealer to correct a material defect of a

covered item of the used vehicle. The material defect must

substantially impair the use, value or safety of the used

vehicle. Covered items consist of:

■ The 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 a 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.

WHAT MUST THE DEALER DO?

The warranty requires the dealer to correct a defective

or malfunctioning part of a used motor vehicle which is

covered by the warranty if the defect occurred during the

applicable warranty period. The consumer is responsible

for bringing the motor vehicle to the selling dealer and

may be entitled to a refund of the used motor vehicle’s

full purchase price* if, during the dealer warranty period:

■ the dealer has been unsuccessful at ﬁxing the same

material defect after at least three attempts; or

■ the vehicle has been out of service for 20 cumulative

days while the dealer is attempting to ﬁx it.

The consumer must pay a $50 deductible for each repair

of a covered item. The Used Car Lemon Law does not

apply to extended service contracts or any remaining

manufacturer warranties.

Keep all of the documents pertaining to the motor vehicle’s

defects and repairs handy.

*Excluding all sales taxes, fees and deductions for

excessive wear and tear and personal use of the vehicle.

IF YOUR CASE QUALIFIES, HERE IS WHAT YOU SHOULD EXPECT:

■ Your Lemon Law application will be promptly

reviewed by a Lemon Law staff member for

completeness and to determine whether it meets

all of the qualiﬁcations for a Lemon Law hearing.

■ The application will be approved, rejected or sent

back to you for edits.

■ Once the application has been approved, the dealer

is sent a copy of your application and an attempt

is made to resolve the case.

■ If the case cannot be resolved, you will then be

contacted to set a hearing date, usually within

20 DAYS, subject to the days the Office of

Administrative Law (O.A.L.) has available. A copy

of the application is then sent to the O.A.L.

■ The administrative law judge’s Initial Decision is

issued within 20 DAYS of the hearing.

■ Within 15 DAYS of receiving the Initial Decision,

the Director of the Division of Consumer

Affairs will issue a Final Decision. The Final

Decision will either adopt, reject or modify the

Initial Decision.

For more information, please contact the

Lemon Law Unit by calling 973-504-6226,

or via e-mail at [email protected].

Correspondence by mail may be sent to:

N.J. Division of Consumer Affairs

Lemon Law Unit

124 Halsey Street

P.O. Box 45026

Newark, NJ 07101

The New Jersey Division of Consumer Affairs

can also be reached by calling 1-800-242-5846.