New Jersey Lemon Law: What to Do If Your New Car Is a Lemon

New Jersey's Lemon Law

Purchasing a new vehicle is a major investment. When that vehicle turns out to have a serious, recurring defect, it can be both financially devastating and dangerous. New Jersey's Lemon Law (N.J.S.A. 56:12-29 et seq.) provides strong protections for consumers in this situation.

What Is the NJ Lemon Law?

The NJ Lemon Law applies to new vehicles (cars, trucks, motorcycles, vans) purchased or leased in New Jersey. It provides a remedy when a vehicle has a substantial defect that:

• Significantly impairs the vehicle's use, value, or safety
• Cannot be repaired after a reasonable number of attempts

What Qualifies as a "Lemon"?

Your vehicle may qualify as a lemon if:

The same defect has been repaired 3+ times within the first 2 years or 24,000 miles (whichever comes first), AND the defect still exists after the third attempt; OR

The vehicle has been out of service for 20+ cumulative days due to repair attempts within the first 2 years or 24,000 miles.

For defects that could cause death or serious bodily injury, only 1 unsuccessful repair attempt is required.

What Remedies Are Available?

If your vehicle qualifies as a lemon, you are entitled to choose:

• Replacement — a comparable new vehicle, or
• Refund — the full purchase price (including taxes, fees, and finance charges), minus a reasonable allowance for use

The manufacturer must also pay your attorney's fees if you prevail.

The Lemon Law Process

1. Document everything — keep all repair orders, correspondence, and records
2. Notify the manufacturer in writing of the defect and your intent to invoke the Lemon Law
3. Attempt informal dispute resolution — many manufacturers have arbitration programs
4. File a lawsuit if informal resolution fails — in the Superior Court of NJ

The statute of limitations is 2 years from the date of original delivery of the vehicle.

The Federal Magnuson-Moss Warranty Act

In addition to the NJ Lemon Law, you may have claims under the federal Magnuson-Moss Warranty Act for breach of express or implied warranty. This federal law also allows recovery of attorney's fees.

Auto Dealer Fraud

Separate from the Lemon Law, auto dealer fraud — misrepresenting a vehicle's condition, history, or price — is a violation of the NJ Consumer Fraud Act, entitling you to treble damages and attorney's fees.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Please consult a licensed New Jersey attorney for advice specific to your situation.