What Is the Lemon Law in New Jersey for Used Cars

The New Jersey Used Car Lemon Law (N.J.S.A. 56:8-67 and following sections), establishes mandatory warranty requirements for dealers selling used vehicles meeting specific criteria. Unlike many states that restrict lemon law coverage to new vehicles alone, New Jersey extends protections to used passenger vehicles through dealer-imposed warranties. The statute covers used motor vehicles priced above $3,000, no more than seven model years old, with odometer readings not exceeding 100,000 miles, and not declared as total losses by insurance carriers. Upon meeting these conditions, dealers must supply written warranties to all retail purchasers, making it one of the nation's most comprehensive protections for used car buyers.

What Protections Do Used Car Buyers Have in New Jersey?

New Jersey buyers benefit from layered statutory protections spanning dealer warranties, federal oversight, and consumer fraud prohibitions.

Dealer-Mandated Warranty Coverage

The Used Car Lemon Law establishes mandatory dealer warranties based on vehicle mileage at sale. Vehicles registered at 24,000 miles or fewer require 90-day or 3,000-mile coverage, whichever expires earlier. Those between 24,001 and 60,000 miles receive 60-day or 2,000-mile protection. Vehicles exceeding 60,000 miles but under 100,000 miles must be warranted for 30 days or 1,000 miles. These warranties specifically address material defects affecting core drivetrain and engine systems, with dealers bearing responsibility for repair or replacement of covered components during the applicable period.

When dealers prove unable to successfully repair the same defect after three separate attempts or when a vehicle remains out of service for a combined 20 calendar days, purchasers become eligible for either a full purchase price refund or a replacement vehicle. The statute defines material defects as those substantially impairing the vehicle's utility, market value, or operational safety.

Magnuson-Moss Warranty Act

The federal Magnuson-Moss Warranty Act operates alongside state protections, creating recourse when express warranties prove inadequate. Written warranty breaches by either dealers or manufacturers expose defendants to liability for damages, vehicle replacement or refund, and attorney fee recovery.

FTC Used Car Rule

The Federal Trade Commission's Used Car Rule requires affixing a Buyer's Guide disclosing warranty terms, coverage extent, and purchase-related rights. This rule operates independently of New Jersey law and ensures transparent communication regarding vehicle condition and coverage boundaries.

New Jersey's Consumer Fraud Protections

Beyond specialized lemon law statutes, New Jersey's broad Consumer Fraud Act condemns deceptive and misleading practices in commercial dealings affecting vehicle sales. Dealers engaged in material misrepresentations regarding mechanical condition, accident history, or service records face enforcement action by the Division of Consumer Affairs and potential civil litigation by harmed purchasers. This statute furnishes a remedy independent of warranty disputes when dealership conduct qualifies as fraudulent or substantially misleading.

Understanding "As Is" Sales in New Jersey

New Jersey law substantially restricts traditional "as is" sales through statutory requirements and disclosure mandates.

What "As Is" Means for Buyers

An "as is" designation under New Jersey law indicates the sale of a vehicle entirely lacking express or implied warranty coverage, with the buyer assuming sole responsibility for post-purchase defects. However, dealers cannot categorically sell vehicles "as is" without qualification. The statute prohibits "as is" sales for vehicles meeting Used Car Lemon Law criteria unless buyers voluntarily waive warranty protections in documented form and the dealer furnishes a clear written explanation of this term prior to completion.

Limited Dealer Disclosure Requirements

Dealerships must communicate mechanical condition truthfully and reveal prior accident involvement, structural damage, service records, and title irregularities. Dealers cannot misrepresent mileage, engine status, transmission operability, or brake system functionality. When selling vehicles on an "as is" basis where permitted, a written explanation preceding the sale becomes mandatory.

Federal odometer disclosure laws apply uniformly, requiring accurate mileage statements at title transfer. The FTC Buyer's Guide must be displayed on all used vehicles, identifying whether warranty coverage exists and specifying covered components or exclusions.

Right to Cancel Purchase Within Two Days

New Jersey law grants buyers purchasing used vehicles priced below $40,000 the option to cancel within two business days, subject to mileage and mechanical condition constraints. No more than 250 miles of operation post-purchase or mechanical damage incurred before the cancellation exercise triggers forfeiture of this right. Dealers must provide complete refunds within specific timeframes following the exercise of cancellation rights.

Limited Exceptions to Restrictions

Fraud, material misrepresentation, or concealment of known defects permits recovery even when dealers purport to sell vehicles "as is." Dealers cannot lawfully sell mechanically unsafe vehicles without adequate disclosure or knowingly conceal defects that inspection should reveal. Misrepresentation of accident history, mileage, or title status creates liability regardless of "as is" language. Violations of federal odometer requirements or false advertising persist as independent violations enabling legal recourse.

Filing a Consumer Complaint

New Jersey Division of Consumer Affairs
Office of Consumer Protection
124 Halsey Street, Newark, New Jersey 07102
Phone: (973) 504-6200
Toll-free: (800) 242-5846 Official Website: Division of Consumer Affairs