Like most states, New Jersey has a Lemon Law intended to assist consumers who buy, register, or lease a new motor vehicle. The Lemon Law protects you from being stuck with a vehicle that develops defects that remain unresolved after three attempts at repairs, or a vehicle that has been out of service for 20 cumulative calendar days during the first two years or 18,000 miles you've had the car (whichever comes first). If the vehicle is sold again during this critical period, the new owner is also covered by this legislation.

How the Law Works

The Lemon Law establishes procedures for resolving disputes between a consumer and a manufacturer and provides remedies when an uncorrected defect seriously hinders the use, value, or safety of the car. Under New Jersey's Lemon Law, the manufacturer must repair defects that are covered under the original warranty if they are identified and reported within a specified time period.

The Lemon Law does not cover defects caused by an accident, vandalism, abuse, or neglect. Furthermore, repairs must be done by the manufacturer, its agent, or an authorized dealer.

What You Can Do

If you think that your vehicle meets the Lemon Law's conditions, you might qualify for Lemon Law relief. You'll need to start out by completing a Lemon Law application and paying a $50 processing fee, which will be returned if your case is successful. You can reach the Division of Consumer Affairs' Lemon Law Unit to begin the process by calling (973) 504-6226 or writing to:

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  • P.O. Box 45026
  • Newark, NJ 07101

  The Lemon Law also requires you to send a letter to the manufacturer by certified mail, return receipt requested, indicating that you might have a claim and that you are giving the manufacturer a final opportunity to resolve the problem.

  Mail your letter after the second unsuccessful repair attempt or after the 20 cumulative calendar days mentioned above. You can contact the Division of Consumer Affairs' Lemon Law Unit for the address of the regional office of your vehicle's manufacturer.

  Then, the manufacturer has 10 calendar days to make a final repair. If this does not happen, you can demand a refund of the vehicle's purchase price. To file a claim under the Lemon Law, you will need a copy of your letter to the manufacturer, your return receipt verification, and your final repair attempt invoice.

  Keep Records

  It is essential to keep on file detailed receipts of all repair attempts and a complete record of your contact with both the manufacturer and the dealer. Generally, a manufacturer's warranty covers repairs for at least the first year following the original delivery date or the first 12,000 miles, whichever comes first. If you lease a vehicle, check your leasing contract to see who is responsible for repair bills.

Replacement vs. Refund

If the manufacturer offers to replace your vehicle, you may refuse the offer and demand a refund. If your request is rejected, you can pursue the matter through a hearing or in court.

If you do accept a replacement vehicle, and the original vehicle was financed, the manufacturer must see that the financing is transferred from the original vehicle to the replacement vehicle. (It is your responsibility to have the title and registration transferred to the car you are given.)

If you accept a refund, you will receive the full purchase price of your original vehicle, minus a "reasonable allowance for vehicle use."

Your Rights

If the manufacturer rejects your claim and refuses to refund your money or replace your vehicle, you may do one of the following:

• Send your complaint to the manufacturer's informal dispute settlement program. (If you take this route and you are not satisfied with the results, you can still file for a hearing before an administrative law judge.)

• File a civil action in court. (Note that once a court decision has been reached, you can no longer use the Division of Consumer Affairs' program.)

• Ask for a hearing through the Division of Consumer Affairs (Automotive Dispute Resolution Program). It might be to your advantage to have a Lemon Law attorney present, because the manufacturer will have legal representation.

The Lemon Law Hearing Process

If the case is resolved, you should inform the Lemon Law Unit of the conclusion. If the matter is not resolved, follow the procedures the unit has established.

If the administrative law judge decides in your favor and the Director of Consumer Affairs agrees with that decision, you will be given a refund plus other costs. If you are dissatisfied with the decision of the division or the court, you have 45 days to file for an appeal in the Appellate Division of the Superior Court. The court can be reached at (609) 292-4822.

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