DID YOU BUY A LEMON?

INTRODUCTION

This article discusses buying new lemon and what you can do about it under the New Jersey New Car Lemon Law. This article doesn’t discuss the New Jersey Used Car Lemon Law, which is discussed elsewhere on this site.

DID YOU BUY OR LEASE A NEW CAR THAT TURNED OUT TO BE A LEMON?

If you bought or leased a new vehicle that is registered in New Jersey or that was purchased in New Jersey and that vehicle has been at the manufacturer’s dealer for repeated repairs for the same problem or there for a long period of time, you might qualify for help under the New Jersey New Car Lemon Law.

DID YOU BUY OR LEASE A CAR WITH THE BALANCE OF THE MANUFACTURER’S WARRANTY REMAINING THAT TURNED OUT TO BE A LEMON?

If you bought a used vehicle registered in New Jersey that had the remainder of the manufacturer’s warranty in effect and that vehicle has been at the manufacturer’s dealer for repeated repairs for the same problem or there for a long period of time, you might qualify for help under the New Jersey New Car Lemon Law. Your vehicle doesn’t have to be purchased or leased new to qualify under the New Car Lemon Law. The Law doesn’t only apply to vehicles bought 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.

WHAT IS THE TIME FRAME FOR A VEHICLE TO BE A LEMON UNDER THE NEW JERSEY NEW CAR LEMON LAW?

Under the New Jersey New Car Lemon Law, to be a lemon, the consumer must report a nonconformity in a vehicle to the manufacturer, or, in the case of a motor 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.

HELP MIGHT BE A PHONE CALL AWAY

The purpose of the New Jersey New Car Lemon Law is to protect buyers or lessees when they buy or lease a motor vehicle and the manufacturer cannot correct defects in the vehicle.
If you have a defect in your vehicle that substantially impairs the vehicle’s use, value or safety, you could be able to get help under the New Jersey New Car Lemon Law.

WHAT DO I NEED TO SHOW TO PROVE A CLAIM UNDER THE NEW JERSEY NEW CAR LEMON LAW?

To establish a claim under the New Jersey New Car Lemon Law, the vehicle buyer or lessee must prove by a preponderance of the credible evidence each of the following five elements of their lemon claim. The elements are:

  • The vehicle buyer or lessee purchased/leased a vehicle manufactured by the vehicle manufacturer.
  • The vehicle had nonconformity or nonconformities that is/are, a defect or defects that substantially impaired the use, value or safety of the vehicle.
  • The non-conformity occurred during the first 24,000 miles of use, or within two years after the date of original delivery to plaintiff, whichever is earlier.
  • The vehicle buyer or lessee reported the non-conformity to the manufacturer or its dealer during the first 18,000 miles of use, or during the period of two years following the date of original delivery to the vehicle buyer or lessee, whichever is earlier.
  • The manufacturer, through its authorized dealers, did not repair the non-conformity or non-conformities within a reasonable time.

DO I HAVE TO GET MY VEHICLE FIXED A CERTAIN NUMBER OF TIMES BEFORE I CAN PURSUE A NEW CAR LEMON LAW CASE?

To win a lemon claim, a vehicle buyer or lessee does not have to show that the vehicle had a specific number of repair attempts. Instead, the vehicle buyer or lessee has to prove that: (1) the nonconformity (substantial defect) occurred 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; (2) the vehicle buyer or lessee reported 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; and (3) the vehicle manufacturer, through its authorized dealers, did not repair the nonconformity or non-conformities within a reasonable time. There is no specific number of times that the manufacturer or its authorized dealership must attempt repairs to the vehicle before the consumer can bring their claim. However, the more attempts that the consumer has, the more likely it may be that they have a strong lemon case. On the other hand, if the consumer waits too long to bring their claim, it could make it more difficult for them to win their claim or delay them from winning the claim. If the vehicle has been at the manufacturer’s dealership at least 20 or more cumulative days for repairs for the same problem or has been subject to repair 3 times for the same problem, you should not wait any longer to ask a New Jersey Lemon Lawyer to evaluate your case. Legal proceedings may take time to be concluded and thus, the longer you wait to find out you have a case (or if you have a valid case, to begin the process), the longer you shall likely have to wait to conclude your case. Delay could hurt your Lemon Law case.

HOW SERIOUS DO MY VEHICLE’S PROBLEMS HAVE TO BE TO QUALIFY AS A LEMON UNDER THE NEW JERSEY NEW CAR LEMON LAW?

To substantially impair a vehicle, the defect or condition must impair the use, value or safety in an important, essential or significant way. When I use the term “substantial,” I do not mean a defect, impairment or condition that is minor, trivial or unimportant. In determining whether a defect or condition substantially impairs the use or value of the vehicle, you can consider whether the defects or conditions have shaken the vehicle buyer or lessee’s confidence in the vehicle. If the defect has shaken the vehicle buyer or lessee’s confidence in the vehicle, this loss of confidence may be the basis for you to find that the defect has impaired the vehicle’s use or value. You must consider this from both a subjective and objective point of view. From a subjective standpoint, the defects must be examined from the point of view of this particular plaintiff. From an objective standpoint, the defects that allegedly have shaken the vehicle buyer or lessee’s confidence must be consistent with what a reasonable person in the vehicle buyer or lessee’s position would have believed under the same or similar circumstances. For example, in deciding whether a specific defect or condition substantially impairs the use or value of a vehicle, you may consider whether the specific defect or condition complained of, in fact caused the vehicle buyer or lessee to lose confidence in this vehicle. Even if you find that the vehicle buyer or lessee’s confidence in the vehicle was shaken, you must also consider whether or not the specific defect or condition, if any, was such that a reasonable person would have lost confidence in the vehicle.

WHAT DO I GET IF I PROVE MY CAR IS A LEMON?

If the manufacturer is unable to correct nonconformity within a reasonable time, the manufacturer shall accept return of the vehicle from the plaintiff. The manufacturer shall also provide the plaintiff with a full refund of the purchase/lease price and any other charges, fees and costs, less a reasonable allowance for the use of the motor vehicle, which shall be calculated by the court. The New Jersey Lemon Law refund is calculated using the following formula:

  • The total purchase or lease price of the vehicle including finance charges, sales tax, license fees, registration fees, and any stated credit or allowance for the consumer’s used vehicle, provided that the full refund of purchase price that may be claimed by a consumer shall not include any portion of a stated credit or allowance for the consumer’s used vehicle that grossly exceeds the true value of the consumer’s used vehicle. A manufacturer may challenge the stated credit or allowance for the consumer’s used vehicle. The manufacturer shall bear the burden of proof and shall provide evidence that the purchase price included a trade-in allowance grossly disproportionate in amount to the true value of the consumer’s used vehicle. Such evidence shall include, but not be limited to, the value of the vehicle as listed in the N.A.D.A. Official Used Car Guide.
  • The cost of any options or other modification arranged, installed or made by the manufacturer or its dealer within 30 days after the date of original delivery.
  • Other charges or fees, including, but not limited to: i) Reimbursement for towing, if any; ii) Reimbursement for actual expenses incurred by the consumer for the rental of a vehicle equivalent to the consumer’s vehicle for the period during which the consumer’s vehicle was out of service due to a nonconformity; iii) fees for expert witnesses and costs.
  • From the refund, a deduction shall be made, representing an allowance for vehicle use. This deduction shall be calculated as follows: 1) Multiply the mileage at the time the consumer first presented the vehicle to the dealer or manufacturer for correction of the nonconformity(s) in question by the total purchase price of the vehicle (or the total lease price, if applicable), then divide by 100,000 miles.
  • In the case of an authorized emergency vehicle, the manufacturer, co-manufacturer or postmanufacturing modifier shall provide the consumer with a full refund of the purchase price of the original emergency vehicle, depending on the source of the nonconformity, including any stated credit or allowance for the consumer’s used emergency vehicle, as well as any other charges or fees, including, but not limited to, sales tax, license and registration fees, reimbursement for towing and reimbursement for actual expenses incurred by the consumer for the rental of a substitute emergency vehicle, if applicable, for the period during which the consumer’s emergency vehicle was out of service due to the nonconformity.

If the vehicle was purchased with financing or leased, the business providing the financing or lessor must be paid from the manufacturer and out of the refund any outstanding balance owed on the finance purchase contract or lease. This is because refunds shall be made to the consumer and lienholder, if any, as their interests appear on the records of ownership maintained by the Chief Administrator of the New Jersey Motor Vehicle Commission. This means the consumer’s refund may be reduced by any outstanding balance due on a finance purchase contract or lease.

WHAT IS THE BEST WAY TO START MY NEW CAR LEMON LAW CASE?

If you think you bought a lemon, you may be able to file a court case. If the manufacturer or its authorized dealer is unable or unwilling to fix the vehicle within a reasonable period of time, the vehicle buyer or lessee is able to file a New Jersey Lemon Law case against the manufacturer in the Superior Court of New Jersey or with another dispute resolution mechanism. If the vehicle buyer or lessee wins the lawsuit, the vehicle buyer or lessee can recover a vehicle refund in the form of money damages and reasonable attorney's fees, expert witness fees, certain repair and vehicle rental costs and certain court costs, including the fees for filing the New Jersey Lemon Law case.

IF I THINK I BOUGHT A LEMON CAR, WHAT SHOULD I DO NEXT?

If you think you bought a lemon, get a no obligation phone consultation with a New Jersey Lemon Lawyer before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! However, even if the facts of your case do not fit the requirements of the 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 you have a valid lemon claim and you do nothing to enforce your rights, you shall be stuck with your defective vehicle and the manufacturer or warranty provider shall get the best of you. There are strict time limits for perfecting and filing New Jersey Lemon Law cases. Since the Lemon Law is such a powerful weapon against manufacturers of lemon vehicles seriously consider making a claim under the Law before it is too late to do so.  It can be very dangerous to read websites and conclude that a particular claim does or does not equal a valid Lemon Law claim.  Do not try to interpret the law by reading a website!

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 don’t fit Consumer Law requirements, you may be entitled to sue a business for a breach of your warranties under other state and federal laws or for a breach of contract or for some other type of claim and you may 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.