Dealing With a Lemon Vehicle in New Jersey
My new car keeps breaking down — here's what New Jersey law says and what to do next.
Statute: N.J. Stat. § 56:12-29 et seq. (New Jersey Lemon Law)
Deadline: 10 days
Penalty: Under New Jersey's Lemon Law and Consumer Fraud Act, consumers may recover a refund or replacement, plus treble damages, reasonable attorney fees, and costs for violations of the Consumer Fraud Act
What is dealing with a lemon vehicle?
Lemon laws exist because, before the late 1970s, buying a new car with a defect that nobody could fix meant you were just stuck with it. California passed the first modern lemon law — the Song-Beverly Consumer Warranty Act — in 1970 and tightened it with the Tanner Consumer Protection Act in 1982. Every other state followed by the early 1990s. The basic deal: if a new vehicle has a substantial defect that the manufacturer can't fix after a reasonable number of attempts, they have to replace it or refund you.
Every state has its own version, with different cutoffs for what qualifies, how many repair attempts you need, and which vehicles are covered. The federal Magnuson-Moss Warranty Act (1975) sits behind all of them as a backup — if a manufacturer doesn't honor a written warranty, you can sue under federal law and recover attorney's fees if you win, which is why most lemon-law lawyers will take your case on contingency.
What to Do If You Bought a Lemon
Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.
Step 2: Send written notice. A formal demand letter to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.
Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.
Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.
Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).
How New Jersey differs from federal law
New Jersey has one of the strongest lemon laws in the country, covering both new and used vehicles:
- New Vehicle Lemon Law (N.J.S.A. 56:12-29 et seq.): Covers new passenger vehicles within the first 24 months or 24,000 miles (whichever comes first). If the manufacturer cannot repair a substantial defect after 2 repair attempts, or the vehicle is out of service for 20 or more cumulative business days, the consumer is entitled to a replacement vehicle or full refund.
- Used Car Lemon Law (N.J.A.C. 13:45A-26B): New Jersey is one of the few states that provides lemon law protection for used vehicles. Dealers must provide a warranty on used cars: 90 days or 3,000 miles for vehicles with 24,001–60,000 miles; 60 days or 2,000 miles for vehicles with 60,001–100,000 miles. Vehicles over 100,000 miles are sold "as is" but must be disclosed.
- NJ Division of Consumer Affairs (DCA) enforcement: The DCA handles lemon law complaints through its Lemon Law Unit. Consumers can file for free arbitration through the DCA rather than going to court.
- Attorney fees: Prevailing consumers in lemon law cases are entitled to attorney fees and costs under both the Lemon Law and the NJ Consumer Fraud Act.
Additional steps in New Jersey
File a complaint with the NJ Division of Consumer Affairs Lemon Law Unit at njconsumeraffairs.gov or call (800) 242-5846. You can request free state-run arbitration. Keep all repair orders and documentation of days the vehicle was out of service.
What you should NOT do
Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.
Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.
Don't sign a quick settlement without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.
Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.
You shouldn't have to hire a lawyer to assert your rights.
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Generate your lemon law →This page is general legal information for New Jersey, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in New Jersey.