Last verified: February 2026
Key Points
- Primary Law: New Jersey Lemon Law (N.J.S.A. 56:12-29 to 56:12-49)
- Coverage: New passenger automobiles within 2 years or 24,000 miles of original delivery
- Presumption: 3+ repair attempts for same defect OR 20+ cumulative calendar days out of service
- Remedies: Replacement vehicle or full refund at manufacturer’s choice (consumer may reject replacement)
- Arbitration: State-run Lemon Law Unit within Division of Consumer Affairs
- Strength: One of the strongest and most consumer-friendly lemon laws in the nation
Quick Penalties Overview
| Violation Type | Consumer Remedy | Additional Damages |
|---|---|---|
| Failure to repair after reasonable attempts | Refund or replacement | Attorney fees to prevailing consumer |
| Manufacturer fails to comply with arbitration | Court enforcement | Civil penalties; additional consumer damages |
| Failure to disclose lemon buyback status | Rescission of sale | Title branding required; Consumer Fraud Act claims |
Table of Contents
📑 Table of Contents (click to expand)
- New Jersey’s Lemon Law Overview
- What Vehicles Are Covered
- New Jersey’s Lemon Law Presumption
- Consumer Remedies: Refund vs. Replacement
- State Dispute Resolution Process
- How to File a Lemon Law Claim
- Manufacturer Defenses
- Used Vehicle Protections
- Title Branding and Disclosure
- Statute of Limitations
- Frequently Asked Questions
- Resources and Legal Help
New Jersey’s Lemon Law Overview
New Jersey has one of the strongest lemon laws in the United States. Codified in N.J.S.A. 56:12-29 through 56:12-49, the New Jersey Lemon Law provides robust consumer protections for purchasers and lessees of new motor vehicles that turn out to be defective.
The law was enacted to ensure that consumers who purchase new vehicles receive vehicles that conform to the manufacturer’s express warranties. When a vehicle cannot be brought into conformity after a reasonable number of repair attempts, the manufacturer must provide either a refund or replacement vehicle.
New Jersey’s lemon law is notable for several consumer-friendly features. The state requires only three repair attempts or 20 days out of service to trigger the presumption, which are lower thresholds than many states. The coverage period of 2 years or 24,000 miles is also more generous than many other states.
The New Jersey Division of Consumer Affairs operates a dedicated Lemon Law Unit that administers a state-run dispute resolution program. This program provides consumers with a free, efficient way to resolve lemon law disputes without hiring an attorney, although many consumers choose to obtain legal representation for complex cases.
Another significant feature of New Jersey’s law is that it applies to vehicles purchased in other states and subsequently registered in New Jersey, protecting consumers who buy out-of-state and then move to or register vehicles in New Jersey.
What Vehicles Are Covered
New Jersey’s lemon law covers “passenger automobiles” as defined in the statute. Understanding what vehicles qualify is essential before pursuing a claim.
Covered Vehicle Types
- Passenger automobiles: Cars, sedans, coupes, convertibles, hatchbacks, and station wagons
- SUVs and crossovers: Sport utility vehicles and crossover vehicles used primarily for personal transportation
- Vans and minivans: Passenger vans designed for personal use
- Light trucks: Pickup trucks and similar vehicles used primarily for personal purposes
- Leased vehicles: Vehicles leased for personal, family, or household use
- Out-of-state purchases: Vehicles purchased elsewhere but registered in New Jersey
Vehicles Not Covered
- Motorcycles (covered under a separate motorcycle lemon law)
- Motor homes and recreational vehicles (living quarters portion)
- Vehicles purchased primarily for business purposes
- Commercial vehicles and trucks used for business
- Off-road vehicles not designed for highway use
- Used vehicles (separate used car lemon law applies)
Consumer Definition
Under New Jersey’s lemon law, a “consumer” means a buyer or lessee of a motor vehicle who purchases or leases the vehicle for personal, family, or household purposes. This definition excludes businesses and commercial purchasers, though some business uses may still qualify if the vehicle is primarily used for personal transportation.
New Jersey’s Lemon Law Presumption
New Jersey law creates a presumption that a vehicle is a lemon if certain conditions are met within the first 2 years of ownership or 24,000 miles, whichever occurs first. This presumption is more favorable to consumers than many other states.
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Problem) | 3 or more attempts | Same defect that substantially impairs use, value, or safety |
| Days Out of Service | 20 or more cumulative calendar days | Vehicle unavailable for repairs of one or more defects |
| Timeframe | Within 2 years or 24,000 miles | Whichever comes first from date of original delivery |
Notable: New Jersey uses only 20 calendar days (not business days) out of service, which is a lower threshold than the 30-day standard used in many states. Combined with the 24,000-mile coverage (versus 18,000 in many states), this makes New Jersey’s law particularly consumer-friendly.
What Qualifies as a Substantial Defect?
The defect must “substantially impair” the use, value, or safety of the vehicle. New Jersey courts have interpreted this requirement broadly. Qualifying defects include:
- Engine problems causing stalling, loss of power, or failure to start
- Transmission defects affecting drivability
- Brake system malfunctions
- Steering problems creating safety hazards
- Electrical system failures affecting critical functions
- Air conditioning or heating failures
- Water leaks causing interior damage
- Safety system malfunctions (airbags, ABS, stability control)
- Persistent warning lights indicating serious issues
- Excessive oil consumption
Consumer Remedies: Refund vs. Replacement
When a vehicle qualifies as a lemon under New Jersey law, the manufacturer must provide relief. The choice between refund and replacement is initially the manufacturer’s, but the consumer has important protections.
Manufacturer’s Options
The manufacturer may elect to:
- Replace the vehicle with a comparable new motor vehicle acceptable to the consumer, OR
- Accept return of the vehicle and provide a full refund
Consumer’s Right to Reject Replacement
If the manufacturer offers a replacement, the consumer may reject it and demand a refund instead. The consumer must accept the replacement or refund within 30 days of receiving the manufacturer’s offer.
Refund Components
A full refund under New Jersey’s lemon law includes:
- Full purchase price: The total contract price paid for the vehicle
- Collateral charges: Sales tax, license fees, registration fees, and title fees
- Finance charges: All interest and finance fees paid on the vehicle loan
- Incidental costs: Reasonable expenses for towing, rental cars, and lodging necessitated by the defect
Usage Deduction: The manufacturer may deduct a reasonable allowance for the consumer’s use of the vehicle prior to the first report of the nonconformity. This is typically calculated using a mileage-based formula:
Usage Deduction = (Purchase Price × Miles Before First Repair) / 100,000
Leased Vehicles
For leased vehicles, the remedy includes refund of all lease payments made, the security deposit, and all early termination charges. The lease is terminated without further obligation to the consumer.
State Dispute Resolution Process
New Jersey operates one of the most developed state-run lemon law dispute resolution programs in the country through the Division of Consumer Affairs’ Lemon Law Unit.
Lemon Law Unit
The Lemon Law Unit within the New Jersey Division of Consumer Affairs processes consumer complaints and facilitates resolution of lemon law disputes. The Unit can:
- Review consumer complaints and supporting documentation
- Contact manufacturers to facilitate resolution
- Schedule hearings before an administrative law judge
- Issue determinations on whether vehicles qualify as lemons
Benefits of State Process
- Free to consumers: No filing fees for using the state process
- No attorney required: Consumers can represent themselves
- Faster than court: Decisions typically within 90 days
- Binding on manufacturer: Manufacturer must comply with decisions
Manufacturer’s Program
If a manufacturer has its own dispute settlement program that complies with federal FTC regulations, consumers may be required to use that program before accessing state remedies. However, the manufacturer’s program decision is not binding on the consumer, who can proceed to the state process or court if unsatisfied.
How to File a Lemon Law Claim
Filing a lemon law claim in New Jersey involves several steps to ensure your rights are protected.
Step 1: Document Everything
- Keep copies of all repair orders
- Note dates vehicle was brought in and returned
- Document the specific problems you reported
- Save all correspondence with the dealer and manufacturer
- Take photos or videos of defects when possible
Step 2: Provide Manufacturer Notice
Notify the manufacturer in writing of your claim. Include:
- Your name and contact information
- Vehicle information (year, make, model, VIN)
- Description of the defect
- History of repair attempts
- Your requested remedy
Step 3: Allow Final Repair Opportunity
Give the manufacturer one final opportunity to repair the vehicle. This is typically a 10-day period after receiving notice.
Step 4: File with Lemon Law Unit
If the manufacturer does not resolve your claim, file a complaint with the New Jersey Lemon Law Unit:
- Complete the official complaint form
- Attach copies of all repair orders
- Include proof of purchase or lease
- Provide correspondence with manufacturer
Step 5: Hearing and Decision
The Lemon Law Unit will schedule a hearing if necessary. Both parties present evidence, and an administrative determination is issued.
Manufacturer Defenses
Manufacturers may raise several defenses to avoid lemon law liability.
Valid Affirmative Defenses
| Defense | Manufacturer’s Argument | Consumer’s Counter |
|---|---|---|
| Lack of substantial impairment | Defect is minor and does not substantially impair use, value, or safety | Document how defect affects daily use, safety concerns, or resale value |
| Consumer abuse or neglect | Defect caused by consumer’s misuse of the vehicle | Provide maintenance records showing proper care |
| Unauthorized modifications | Aftermarket parts or alterations caused the defect | Show defect existed before modifications or is unrelated |
| Accident damage | Problem resulted from collision or accident damage | Show defect existed before accident or is unrelated to damage |
Used Vehicle Protections
While New Jersey’s primary lemon law covers new vehicles, the state also has a separate Used Car Lemon Law (N.J.S.A. 56:12-46) that provides protections for used vehicle buyers.
Used Car Lemon Law Coverage
New Jersey’s Used Car Lemon Law applies to:
- Used passenger vehicles sold by licensed dealers
- Vehicles with odometer readings under a certain threshold
- Vehicles sold with a warranty (express or implied)
Key Protections
- Dealers must provide a warranty on qualifying used vehicles
- Warranty period depends on mileage at time of sale
- Consumers may be entitled to refunds if defects cannot be repaired
The used car protections are separate from the new car lemon law and have different requirements and procedures.
Title Branding and Disclosure
New Jersey has strict requirements for disclosing vehicles that have been returned under lemon laws.
Title Branding Requirements
When a vehicle is returned to a manufacturer under the lemon law:
- The title must be branded to indicate lemon law buyback status
- The Motor Vehicle Commission must be notified
- The branded title follows the vehicle permanently
Disclosure to Subsequent Purchasers
Anyone selling a vehicle that was previously returned under a lemon law must disclose this fact to potential buyers. Failure to disclose can result in:
- Rescission of the sale
- Consumer Fraud Act claims
- Additional civil penalties
Protecting Yourself When Buying Used
- Check the title for lemon law branding
- Request a vehicle history report (CARFAX, AutoCheck)
- Ask the seller directly about lemon law history
- Have the vehicle inspected by an independent mechanic
Statute of Limitations
Understanding the time limits for filing a New Jersey lemon law claim is critical.
Key Time Periods
- Coverage period: 2 years or 24,000 miles from original delivery
- Manufacturer notice: Should be provided promptly after qualifying conditions are met
- Court action: General statute of limitations for contract claims applies
Preserving Your Rights
- Report all defects promptly during the coverage period
- Keep detailed records of all repair attempts
- Provide written notice to the manufacturer as soon as the presumption triggers are met
- File with the Lemon Law Unit promptly if the manufacturer does not resolve your claim
Frequently Asked Questions
How many repair attempts does New Jersey require?
New Jersey requires only three repair attempts for the same defect, or 20 cumulative calendar days out of service, within the first 2 years or 24,000 miles. This is a lower threshold than many other states, making it easier for consumers to qualify for relief.
Does New Jersey’s lemon law cover used cars?
New Jersey has a separate Used Car Lemon Law that provides protections for used vehicle buyers. The requirements and procedures differ from the new car lemon law. Used vehicles purchased from licensed dealers may be entitled to warranty protections and, in some cases, refunds.
Can I choose between a refund and replacement in New Jersey?
The initial choice between refund and replacement is the manufacturer’s under New Jersey law. However, if the manufacturer offers a replacement, the consumer may reject it and demand a refund instead. The consumer has 30 days to accept or reject the manufacturer’s offer.
Is there a fee to file a lemon law complaint in New Jersey?
No, there is no filing fee to use the state’s Lemon Law Unit dispute resolution process. This makes the state process accessible to all consumers regardless of financial resources.
Do I need a lawyer for a New Jersey lemon law claim?
You do not need a lawyer to file a complaint with the Lemon Law Unit, and many consumers successfully represent themselves. However, for complex cases or if you want to pursue court remedies and additional damages, having an attorney can be beneficial. Many lemon law attorneys work on contingency and their fees are paid by the manufacturer if you prevail.
Does New Jersey’s lemon law apply to vehicles purchased out of state?
Yes, New Jersey’s lemon law can apply to vehicles purchased in other states if the vehicle is subsequently registered in New Jersey. This protects consumers who buy out-of-state and then move to or register vehicles in New Jersey.
What is the usage deduction in New Jersey?
The manufacturer may deduct a reasonable allowance for your use of the vehicle before the first repair attempt for the defect. This is typically calculated by dividing the miles driven before the first repair by 100,000 and multiplying by the purchase price.
Resources and Legal Help
Official Resources
- New Jersey Division of Consumer Affairs Lemon Law Unit
- New Jersey Lemon Law Statute (N.J.S.A. 56:12-29 et seq.)
- New Jersey Motor Vehicle Commission
- Division of Consumer Affairs