State lemon laws help consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired under the manufacturer’s original warranty.
Lemon laws can help a consumer get the vehicle repurchased, replaced, or repaired through a process that is less complicated and expensive than filing a lawsuit and going to court.
A car is a “lemon” when it is determined that the vehicle is defective beyond repair. Most states have some form of a lemon law to protect car buyers. These laws generally only apply to new cars purchased or leased by consumers and small businesses.
But a used car may also be covered if it is still covered by the manufacturer’s original warranty (not an extended service contract), or if the defect started and was reported to the dealer while under the manufacturer’s original warranty, and the defect continues to exist.
Lemon laws often do not cover repossessed vehicles, non-travel trailers, boats, or farm equipment.
Lemon laws only cover defects that substantially impair the use or market value of the vehicle—which does not include issues like minor rattles, noises, and car audio imperfections.
Each state has its own requirements, but common factors to qualify as a lemon include:
• The vehicle has a substantial manufacturing defect
• The defect is covered by a manufacturer’s written warranty
• The owner reports the defect to the dealer or manufacturer within the warranty term
• The owner gives the dealer a reasonable number of attempts to repair the defect or condition
• The owner gives the manufacturer written notice (preferably by certified mail) of the defect and at least one opportunity to fix the defect
• The defect persists and substantially impairs the vehicle’s use or market value or creates a serious safety hazard
Lemon laws are usually located in a state’s statutes and are often administered by the state’s department of motor vehicles or a specified consumer protection agency.
In New Jersey, the Lemon Law applies to new cars that are purchased or leased and experience repeated problems during the first 24 months or 24,000 miles, whichever comes first. The law requires that the vehicle must have a substantial defect that is covered by the manufacturer's warranty and is reported to the dealer or manufacturer within the warranty period. The consumer must allow the dealer a reasonable number of attempts to repair the defect. If the issue persists and substantially impairs the vehicle's use, safety, or value, the consumer may be entitled to a replacement vehicle or a full refund. New Jersey's Lemon Law also covers authorized emergency vehicles and motorcycles. For used cars, the Lemon Law applies if the vehicle is still under the original manufacturer's warranty and the defect began and was reported while under this warranty, and it continues to exist. The law does not cover issues that do not substantially impair the use or value of the vehicle, such as minor rattles or audio system problems. The New Jersey Lemon Law is administered by the New Jersey Division of Consumer Affairs. Consumers seeking relief under the Lemon Law may need to provide written notice to the manufacturer and may be required to go through an arbitration process before pursuing legal action. An attorney specializing in Lemon Law can provide guidance on the specific steps and documentation required.