WHAT ARE MY RIGHTS UNDER THE NEW JERSEY USED CAR LEMON LAW?

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INTRODUCTION

This article discusses consumer rights under the New Jersey Used Car Lemon Law. The New Jersey Used Car Lemon Law is a different law discussed in another article on this website.

THE NEW JERSEY USED CAR LEMON LAW GIVES CONSUMERS SPECIFIC RIGHTS

To protect buyers from being fraud victims when they buy a used vehicle, the New Jersey Used Car Lemon Law provides many specific rights to consumers.

WHO ARE ENTITLED TO THE RIGHTS GIVEN BY THE NEW JERSEY USED CAR LEMON LAW?

The people who have rights under the New Jersey Used Car Lemon Law are consumers buying a "used motor vehicle", which means a passenger motor vehicle, excluding motorcycles, motor homes and off-road vehicles, title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand," within the ordinary meaning thereof but does not mean a passenger motor vehicle, subject to a motor vehicle lease agreement which was in effect for more than 90 days, which is sold by the lessor to the lessee, or to a family member or employee of the lessee upon the termination of the lease agreement. A "Consumer" is a purchaser or prospective purchaser, other than for the purpose of resale, of a used motor vehicle normally used for personal, family or household purposes. To benefit from the rights given by the Law, the consumer must purchase their vehicle from a "dealer", which means any person or business which sells or offers for sale a used motor vehicle after selling or offering for sale three or more used motor vehicles in the previous 12-month period.

NEW JERSEY USED CAR LEMON LAW RIGHT #1

THE RIGHT TO RECEIVE DISCLOSURES ABOUT THE VEHICLE’S PREDELIVERY HISTORY

The consumer has a right to receive notice about a used vehicle’s predelivery history. This requires the used car dealer to avoid doing any of the following when selling a used car:

  • Misrepresent the mechanical condition of a used car;
  • Fail to disclose, prior to sale, any material defect in the mechanical condition of the used car which is known to the New Jersey used car dealer;
  • Represent that a used car, or any component thereof, is free from material defects in mechanical condition at the time of sale, unless the used car dealer has a reasonable basis for representation when made;
  • Fail to disclose, prior to sale, the existence and terms of any written warranty, service contract or repair insurance subject to transfer, known to the New Jersey used car dealer, in effect & provided by a third party.
  • Misrepresent the terms of any written warranty, service contract or repair insurance currently in effect on a
  • New Jersey used car provided by a person other than the used car dealer and subject to transfer.
  • Fail to disclose, prior to sale, the existence & terms of any written warranty, service contract or repair insurance offered by the New Jersey used car dealer in connection with the sale of a used car;
  • Misrepresent the terms of any warranty, service contract or repair insurance offered with the sale of a used car;
  • Represent, prior to sale, that a used car is sold with a warranty, service contract or repair insurance when the car is sold without any warranty, service contract or repair insurance;
  • Fail to disclose, prior to sale, that a used car is sold without any warranty, service contract, or repair insurance; and
  • Fail to provide a clear written explanation, prior to sale, of what is meant by the term “as is,” if the used car is sold “as is.”

If a used car dealer fails to comply with these requirements, it is a violation of the New Jersey Consumer Fraud Act

NEW JERSEY USED CAR LEMON LAW RIGHT #2

THE RIGHT TO RECEIVE WARRANTIES FOR CERTAIN USED VEHICLES

For certain used vehicles purchased, the consumer has a right to receive a warranty from the dealer. The mandatory warranty right only applies to cars, trucks and SUVs which are:

  • sold by a person selling or offering for sale the car, truck or SUV selling or offering for sale 3 or more used vehicles in the previous 12 month period or a lessor who is a dealer and who sells or offers for sale a used passenger motor vehicle, subject to a motor vehicle lease agreement which was in effect for more than 90 days, to a consumer who is not the lessee, or a family member or employee of the lessee upon the termination of the lease agreement.
  • not purchased for the purpose of resale.
  • the subject of a “sale” (the transfer of title of a used vehicle from the owner-seller to the purchaser-consumer) and not one where the owner-seller obtained title to or was granted the right to sell a used vehicle by operation of law.
  • not sold by a public entity or unit of the government.
  • the type normally used for personal, family or household purposes
  • passenger motor vehicles and are not motorcycles, motor homes or off road vehicles.
  • transferred from the person who first acquired it from the manufacturer or dealer and so used as to become what is commonly known as “secondhand” within the ordinary meaning thereof.
  • purchased for over $3,000.
  • less than 7 model years old at time of sale.
  • never declared a total loss by an insurance company.
  • not equipped with an odometer that registered over 100,000 miles at time of sale.
  • not the subject of a written waiver of the buyer’s right to a warranty from the selling dealer (if the vehicle had over 60,000 miles).

Depending on the mileage and age of the vehicle, there are three different types of warranties that are required to be given to consumers by the selling dealer:

  • If the used vehicle has 24,000 miles or less, the warranty shall be, at a minimum, 90 days or 3,000 miles, whichever comes first;
  • If the used vehicle has more than 24,000 miles but less than 60,000 miles, the warranty shall be, at a minimum, 60 days or 2,000 miles, whichever comes first; or
  • If the used vehicle has 60,000 miles or more, the warranty shall be, at a minimum, 30 days or 1,000 miles, whichever comes first, except that a consumer may waive his right to a warranty as provided under the Law.

If the used motor vehicle has 60,000 miles or more, the warranty shall be, at a minimum, 30 days or 1,000 miles, whichever comes first, the consumer may waive the warranty in writing via a specific type of waiver. If the New Jersey used car dealer fails to give a written warranty required by the Law and the consumer does not sign a waiver as provided by the Law, the dealer nevertheless shall be deemed to have given the warranty.

If a used car dealer fails to comply with these requirements, it is a violation of the New Jersey Consumer Fraud Act.

Not all parts of a used vehicle are covered by the New Jersey Used Car Lemon Law warranties. Instead, those warranties only cover defects in one of the following parts of the car, truck or SUV:

  • 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. Note that housing, engine blocks and cylinder heads are covered only if damaged by 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, but 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.
  • Possibly any other component (if any) specifically covered by the used car dealer’s warranty for the car, truck or SUV.

NEW JERSEY USED CAR LEMON LAW RIGHT #3

THE RIGHT TO REPAIRS TO ITEMS COVERED BY THE VEHICLE’S WARRANTY

The consumer has a right to repairs that are attempted in a certain time frame. The vehicle’s written warranty shall require the dealer, upon failure or malfunction of a covered item during the term of the warranty, to correct the malfunction or defect, provided the used motor vehicle is delivered to the dealer, at his regular place of business, and subject to a deductible amount of $50 to be paid by the consumer for each repair of a covered item. This written warranty shall exclude repairs covered by any manufacturer's warranty, or recall program, as well as repairs of a covered item required because of collision, abuse, or the consumer's failure to properly maintain such used motor vehicle in accordance with the manufacturer's recommended maintenance schedule, or from damage of a covered item caused as a result of any commercial use of the used motor vehicle, or operation of such vehicle without proper lubrication or coolant, or as a result of any misuse, negligence or alteration of such vehicle by someone other than the dealer.

If a used car dealer fails to comply with these requirements, it is a violation of the New Jersey Consumer Fraud Act.

NEW JERSEY USED CAR LEMON LAW RIGHT #4

THE RIGHT TO A PRESUMPTION THAT THE VEHICLE IS A LEMON IF A CERTAIN NUMBER OF REPAIRS ARE MADE OR IF THE REPAIRS TAKE A CERTAIN NUMBER OF DAYS

The consumer has the right to the lemon presumption if the dealer fails to make timely repairs to a vehicle. It shall be presumed that a dealer has a reasonable opportunity to correct or repair a material defect in a used motor vehicle, if:

  • The same material defect has been subject to repair three or more times by the dealer or his agent within the warranty period, but the material defect continues to exist; or
  • The used motor vehicle is out of service by reason of waiting for the dealer to begin or complete repair of the material defect for a cumulative total of 20 or more days during the warranty period.

NEW JERSEY USED CAR LEMON LAW RIGHT #5

THE RIGHT TO A REFUND IF A VEHICLE CAN’T BE FIXED IN A REASONABLE TIME

The consumer has a right to a Lemon Law refund if the vehicle’s defects can’t be fixed in a reasonable time. If, within the periods specified for a vehicle’s warranty, the dealer or his agent fails to correct a material defect of the used motor vehicle, after a reasonable opportunity to repair the used motor vehicle, the dealer shall repurchase the used motor vehicle and refund to the consumer the full purchase price, excluding all sales taxes, title and registration fees, or any similar governmental charges, and less a reasonable allowance for excessive wear and tear and less a deduction for personal use of such vehicle. Refunds shall be made to the consumer and lienholder, if any, as their interests appear on the records of ownership kept by the Director of the Division of Motor Vehicles.

If a used car dealer fails to comply with these requirements, it is a violation of the New Jersey Consumer Fraud Act.

TO LEARN MORE, GET A NO OBLIGATION CONSULT

Call Perlman DePetris Consumer Law for a no obligation phone consultation. Handling your case wrong from the beginning may only cost you more money and time in the end!! Try to do it right the first time by seeking legal advice from a competent lawyer! You might be entitled to be represented on a contingent basis, meaning that the attorney won’t get paid unless the case is successful and that the lawyer gets paid from your recovery instead of requiring you to pay attorney’s fees out of your own pocket up front. Other cases can be handled for a relatively small one-time payment of an up-front fixed attorney’s fee and with a contingent fee at the end of the case. Filing a claim yourself is very risky, since businesses often hire experienced defense attorneys to fight your case. Also, if you try to negotiate a settlement yourself, you may get less money than you deserve. You should always speak with an attorney before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! Even if the facts of your case do not fit the requirements of a Lemon Law, you may be entitled to sue the manufacturer or its selling dealer for a breach of your warranties under other state and federal laws.  If the manufacturer or selling dealer breached the warranties that came with your vehicle, you may be able to recover money damages, attorney’s fees and court costs.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.