WHAT IS A “LEMON” UNDER THE NEW JERSEY LEMON LAW?

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INTRODUCTION

This article only discusses what makes a vehicle a lemon under the New Car Lemon Law and what makes a vehicle a lemon under the New Jersey Used Car Lemon Law.

RELIEF FOR LEMON BUYERS UNDER LEMON LAWS

To understand what is a lemon under New Jersey lemon laws, it is helpful to understand some background information about the lemon laws. A Lemon under the Lemon Laws is a certain type of vehicle that exhibits a substantial problem or problems following one or more repair attempts made to it.  For new vehicles, contrary to much misinformation spread amongst consumers, a vehicle does not necessarily have to be out of service for 20 or more days or undergo a certain number of repairs to qualify as a lemon. The State’s lawmakers decided that, since new cars, trucks, SUVs, recreational vehicles or motorcycles were expensive to buy and lease the public should be protected from new cars, trucks, SUV’s, recreational vehicles or motorcycles by having a right to sue the manufacturers of new cars, trucks, SUV’s, recreational vehicles or motorcycles for a refund of the car, truck, SUV, recreational vehicle or motorcycle’s purchase or lease price, less deductions for how many miles the defective vehicle had when the defect was first reported to the manufacturer or its authorized dealership and for wear and tear. Also since many used car dealers committed fraud when selling used cars, ’s lawmakers decided that the public should be protected from used cars, trucks, SUV’s, recreational vehicles or motorcycles by having a right to sue used car dealers who sold used cars, trucks, SUV’s, recreational vehicles or motorcycles.

TWO DIFFERENT LEMON LAWS

There are two different New Jersey Lemon Laws. The first law is the New Jersey New Car Lemon Law, which is a law that doesn’t only apply to vehicles bought or leased brand new. The person seeking to apply the law must be a buyer or lessee, other than for purposes of resale or sublease, of a vehicle or a person to whom the vehicle was transferred during the duration of a warranty applicable to the vehicle or any other person entitled by the warranty’s terms to enforce the warranty’s obligations. Under the law "warranty" means any warranty, whether express or implied of the manufacturer of a new motor vehicle, or, in the case of a new motor vehicle that is an authorized emergency vehicle, of the manufacturer, co-manufacturer or post-manufacturing modifier, of the vehicle's condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under the warranty. This means that a person buying or leasing a vehicle used which is still covered by the manufacturer’s warranty may qualify for help under the Law. However, the consumer must report a nonconformity in a vehicle to the manufacturer, or, in the case of a vehicle that is an authorized emergency vehicle, the manufacturer, co-manufacturer or postmanufacturing modifier, or its dealer or distributor, during the first 24,000 miles of operation or during the period of two years following the date of original delivery to the consumer, whichever is earlier. The second law is the New Jersey Used Car Lemon Law, the lemon refund for which applies only to specific types of vehicles sold used - passenger motor vehicles and 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 and 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). 

WHAT IS A LEMON UNDER THE NEW JERSEY NEW CAR LEMON LAW?

To understand what is a lemon under the New Jersey New Car Lemon Law, you must familiarize yourself with the law’s requirements. The Law applies to the following cars, trucks, SUVs, recreational vehicles or motorcycles:

  • a passenger car, truck, SUV, recreational vehicle or motorcycle
  • a passenger motorcycle
  • motor homes, except their living facilities, which are excluded from the Lemon Law
  • authorized emergency response vehicles
  • purchased or leased in the State or which is registered by the Division of Motor Vehicles in the Department of Law and Public Safety
  • purchased or leased by a buyer or lessee, other than for purposes of resale or sublease or transferred to someone during the duration of a warranty applicable to the motor vehicle or operated by any other person entitled by the terms of the truck, SUV, recreational vehicle or motorcycle’s warranty to enforce the obligations of the truck, SUV, recreational vehicle or motorcycle’s warranty.

Cars, trucks, SUVs, recreational vehicles or motorcycles covered under the New Jersey New Car Lemon Law are lemons if:

  • a manufacturer or its dealer
  • is unable to repair or correct a defect or condition
  • which substantially impairs the use, value or safety of such a motor vehicle
  • within a reasonable time and during the vehicle’s first 24,000 miles of operation or during the period of two years following the date of original delivery of the motor vehicle to a consumer, whichever happens first.

WHEN IS A CAR, TRUCK, SUV, RECREATIONAL VEHICLE OR MOTORCYCLE NOT A LEMON UNDER THE NEW JERSEY NEW CAR LEMON LAW?

The vehicle manufacturer in a New Jersey New Car Lemon Law case may use the following defenses to show that a vehicle is not a Lemon:

  • The defendant is not the manufacturer of the vehicle or, in the case of a vehicle that is an authorized emergency vehicle, the manufacturer, co-manufacturer or postmanufacturing modifier, or its dealer or distributor.
  • The vehicle isn’t a passenger car, truck, SUV, recreational vehicle, motorcycle or authorized emergency vehicle.
  • The nonconformity affects a motor home’s living facilities, which are excluded from the Lemon Law
  • The vehicle was neither purchased or leased in the State or registered by the Division of Motor Vehicles in the Department of Law and Public Safety
  • The vehicle was purchased or leased by a buyer or lessee for purposes of resale or sublease or not transferred to someone during the duration of a warranty applicable to the motor vehicle or operated by any other person entitled by the terms of the truck, SUV, recreational vehicle or motorcycle’s warranty to enforce the obligations of the truck, SUV, recreational vehicle or motorcycle’s warranty.
  • The alleged nonconformity does not substantially impair the use, value or safety of the vehicle.
  • The nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of the vehicle by someone other than the vehicle manufacturer or its dealer.
  • The nonconformity didn’t occur during the first 24,000 miles of use, or within two years after the date of original delivery to the vehicle buyer or lessee, whichever is earlier.
  • The vehicle buyer or lessee failed to report the nonconformity to the manufacturer or its dealer during the first 24,000 miles of use, or during the period of two years following the date of original delivery to the plaintiff, whichever is earlier.
  • The vehicle manufacturer, through its authorized dealers, repaired the nonconformity or non-conformities within a reasonable time.

WHAT IS A LEMON UNDER THE NEW JERSEY USED CAR LEMON LAW?

Many vehicle buyers wonder what is a Lemon under the New Jersey Used Car Lemon Law? The New Jersey Used Car Lemon Law 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).

Used cars, used trucks and used SUVs covered under the New Jersey Used Car Lemon Law are lemons if:

    • a used car lemon law warranty applied to the vehicle and one or more problems covered by the warranty occurred during the car, truck or SUV’s warranty period, which is defined as follows:
      • 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 section 7 of the New Jersey Used Car Lemon Law.
    • and after a reasonable opportunity to repair the used car, truck or SUV, meaning that:
      • the used car, truck or SUV is delivered to the used car dealer, at his regular place of business, and subject to a deductible amount of $50 to be paid by the car, truck or SUV buyer for each repair of a covered item
      • the used car dealer or the dealer’s agent fails to correct a material defect of the used vehicle, with “material defect” being defined as:
        • a malfunction of a used vehicle
        • subject to the car, truck or SUV’s warranty
        • which substantially impairs the car, truck or SUV’s use, value or safety
      • and the car, truck or SUV’s defect is not the result of any of the following:
        • abuse, improper maintenance, neglect, modification or alteration of the vehicle or collision caused by someone other than the dealer.
        • damage of a covered item caused by of any commercial use of the vehicle.
        • damage of a covered item caused by operation of the vehicle without proper lubrication or coolant

Under the New Jersey Used Car Lemon Law, to be a lemon, the car, truck or SUV’s defect must be a defect in one of the following components 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.

WHEN IS A CAR, TRUCK, SUV, RECREATIONAL VEHICLE OR MOTORCYCLE NOT A LEMON UNDER THE NEW JERSEY NEW CAR LEMON LAW?

Under the New Jersey Used Car Lemon Law, used cars, used trucks and used SUVs otherwise covered under the Law are not considered lemons if:

  • The vehicle wasn’t 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 leased by 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.
  • The vehicle was purchased for the purpose of resale.
  • The vehicle wasn’t the subject of a “sale” (the transfer of title of a used vehicle from the owner-seller to the purchaser-consumer) but was one where the owner-seller obtained title to or was granted the right to sell a used vehicle by operation of law.
  • The vehicle was sold by a public entity or unit of the government.
  • The vehicle wasn’t the type normally used for personal, family or household purposes
  • The vehicle wasn’t a passenger motor vehicle or instead was a motorcycle, motor home or off road vehicle.
  • The vehicle wasn’t 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.
  • The vehicle wasn’t purchased for over $3,000.
  • The vehicle wasn’t less than 7 model years old at time of sale.
  • The vehicle was declared a total loss by an insurance company.
  • The vehicle was equipped with an odometer that registered over 100,000 miles at time of sale.
  • The vehicle was 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).
  • No used car lemon law warranty applied to the vehicle.
  • No problems covered by the vehicle’s used car lemon law warranty didn’t occurred during the car, truck or SUV’s warranty period, which is defined as follows:
    • 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 section 7 of the New Jersey Used Car Lemon Law.
  • The consumer failed to give the dealer or its agent a reasonable opportunity to repair the used car, truck or SUV, meaning that:
    • the used car, truck or SUV is delivered to the used car dealer, at his regular place of business, and subject to a deductible amount of $50 to be paid by the car, truck or SUV buyer for each repair of a covered item
  • The used car dealer or the dealer’s agent corrected the complained of material defects of the used vehicle, with “material defect” being defined as:
    • a malfunction of a used vehicle
    • subject to the car, truck or SUV’s warranty
    • which substantially impairs the car, truck or SUV’s use, value or safety
  • The complained of defects weren’t “material defects” being defined as:
    • malfunction of a used vehicles
    • subject to the car, truck or SUV’s warranty
    • which substantially impair the car, truck or SUV’s use, value or safety
  • The vehicle’s defects are the result of any of the following:
    • abuse, improper maintenance, neglect, modification or alteration of the vehicle or collision caused by someone other than the dealer.
    • damage of a covered item caused by of any commercial use of the vehicle.
    • damage of a covered item caused by operation of the vehicle without proper lubrication or coolant.
  • The complained of defects didn’t involve components covered by the New Jersey Used Car Lemon Law warranty, because the defect didn’t involve any of the following:
    • 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.

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.