The Lemon Law in New Jersey

The New Jersey lemon law protects the consumer because it is designed to assist customers who have purchased a vehicle and experience repeated problems during the first two years or 18,000 miles whichever comes first. Its intent is simply to let the manufacturer correct these defects or find a way to appease the customer.

Vehicles that are covered under the New Jersey lemon law have to be purchased, leased or registered with the state.

Your car is only considered to be a lemon if it is one or more defects and this continue to exist after three attempts to fix it or if it has been out of service for a total of 20 cumulative calendar days. The problem should substantially impair the use, value or safety of the vehicle. What are not covered under this law are defects caused by abuse, accidents, neglect, modification or vandalism.

For you to take advantage of this law, you must write a letter to the manufacturer giving them notification of one last chance to repair the defect.

If nothing happens, then you have three choices. First, ask for a hearing through the Division of Consumer Affair’s Automotive Dispute Resolution Program. You can also send your complaint to the manufacturer many of whom have an informal dispute settlement program. The last is to file a civil action in court.

For a hearing to occur, you have to fill up the application form, present certain documents and pay the application fee of $50. If you win here, the fee will be returned to you as part of the amount to be awarded. The hearing is usually be set in the next 20 days. Once the case is heard, a decision will be issued within another 20 day period.

Not that many people resolve the matter with the manufacturer because any findings here can be used against you during a hearing or in court which is why many go straight to court. For this to work, you have to hire a lawyer.

If you win, the manufacturer must repay you for the costs including attorney fees and expert witness fees. But things don’t end there because the manufacturer may file an appeal in the Appellate Division of the Superior Court to challenge the decision of the lower court. You can also do the same if the decision did not go in your favor.

Should they decide to do this, the manufacturer must first pay a bond equal to the amount awarded to you by the final decision plus an extra $2,500 to cover your attorney’s fees. This bond is payable to you and the amount will only be turned over if you win the appeal.

A favorable outcome from the lemon law in New Jersey may mean a refund or a replacement.

A refund includes the full purchase of the vehicle minus any reasonable allowance for vehicles use. This is equivalent to the purchase price multiplied by the mileage at the time the vehicle was first brought to the dealer or manufacturer for repair divided by 100,000 miles.

A replacement is usually of similar model and make which you may reject if you want to receive instead a full refund.

Nobody expects to buy a brand new car and encounter any problems. But since this happens, it is your right to get your money back or get a replacement which is stipulated under the New Jersey lemon law.