10 NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTIONS

INTRODUCTION

This page discusses 10 New Jersey Lemon Law frequently asked questions. This article only discusses New Jersey Used Car Lemon Law frequently asked questions. The New Car Lemon Law is an entirely different Law discussed in a separate article located on this website.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #1

WHAT IS THE USED CAR LEMON LAW?

Part of the New Jersey Consumer Fraud Act that regulates the sale and warranty of certain used cars and is commonly known as the New Jersey Used Car Lemon Law. The New Jersey Division of Consumer Affairs also adopted parallel regulations that help interpret the law. The used car industry is often the subject of fraudulent conduct committed by used car dealers. To protect certain used car buyers, New Jersey used car dealers are required to comply with the law when selling certain kinds of vehicles.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #2

WHO IS CONSIDERED A DEALER UNDER THE USED CAR LEMON LAW?

Under the New Jersey Used Car Lemon Law, a used car dealer is 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 12-month period occurring before the consumer buys their vehicle from the other person or business.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #3

WHAT TYPES OF THINGS ARE ILLEGAL FOR NEW JERSEY USED CAR DEALERS TO DO WHEN SELLING USED CARS IN NEW JERSEY?

  • 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.”

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #4

WHICH USED CARS ARE SUBJECT TO THE USED CAR LEMON LAW REFUND?

Not all used cars are subject to the refund requirement of the law for defective vehicles. The refund requirement of the law 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). 

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #5

WHEN SELLING VEHICLES, DOES A USED CAR DEALER HAVE TO GIVE MINIMUM WARRANTIES?

For certain vehicles – those to which the law’s refund remedy applies, used car dealers must give warranties. For all used cars sold in New Jersey for more than $3,000, less than seven or more model years old, that were not been declared a total loss by an insurance company and with respect to which the New Jersey lemon buyer was so advised at time of sale in writing of same and that have 100,000 miles or less, the selling New Jersey used car dealer commits a per se New Jersey Consumer Fraud Act violation unless they give the lemon buyer a written powertrain type of warranty with certain minimum durations subject to the used car’s mileage. If the used motor vehicle has 60,000 miles or more, a consumer may waive his right to a warranty in writing.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #6

WHAT MINIMUM WARRANTIES ARE REQUIRED TO BE GIVEN BY USED CAR DEALERS?

For vehicles that are subject to the New Jersey Used Car Lemon Law, 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.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #7

WHAT PARTS OF A USED VEHICLE ARE COVERED BY THE USED CAR LEMON LAW WARRANTIES?

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 FREQUENTLY ASKED QUESTION #8

HOW DOES A CONSUMER QUALIFY FOR A USED CAR LEMON REFUND?

As to vehicles covered by the Law, if, during the warranty issued by the used car dealer pursuant to the Law, the New Jersey used car dealer or the used car dealer’s agent fails to correct a material defect after a reasonable opportunity to repair the vehicle, the used car dealer shall repurchase the used car and provide a refund less a use allowance. To win a refund, the consumer must show that:

  • 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 the 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

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #9

WHAT ARE DEFENSES TO USED CAR LEMON CLAIMS?

There are many defenses to used car lemon claims, such as the following:

  • 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 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 the 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 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.

NEW JERSEY USED CAR LEMON LAW FREQUENTLY ASKED QUESTION #10

WHAT REMEDIES ARE AVAILABLE TO CONSUMERS UNDER THE LAW?

If, during the period of a warranty provided under the Used Car Lemon Law, the dealer or his agent fails to correct a material defect of the used vehicle after a reasonable opportunity to repair the used motor vehicle, the dealer shall repurchase the 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. "Deduction for personal use" means the mileage allowance set by the federal Internal Revenue Service for business usage of a motor vehicle in effect on the date a used motor vehicle is repurchased by a dealer under the Used Car Lemon Law, multiplied by the total number of miles a used motor vehicle is driven by a consumer from the date of purchase of that vehicle until the time of its repurchase. Refunds shall be made to the consumer and lienholder, if any, as their interests appear on the records of ownership kept by the New Jersey Motor Vehicle Commission. Any violation of the Used Car Lemon Law is also a violation of the New Jersey Consumer Fraud Act, which may allow the consumer to recover the following additional remedies against the dealer:

  • Treble damages for an ascertainable loss of money or property caused by the New Jersey Consumer Fraud Act Violation.
  • Attorney’s fee award for prosecuting the claim.
  • Cancellation of fraudulent debts.
  • Refund of money lost due to the New Jersey Consumer Fraud Act Violation.

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.