Lemon Law for Used Cars in NJ

New Jersey's Used Car Lemon Law requires dealers to provide express warranties to consumers who buy used passenger cars for personal use costing $3,000 or more, are less than seven years old, and have odometer readings of less than 100,001 miles. The law prohibits consumers from waiving their rights to a warranty if the odometer reading is greater than 60,000 miles and the waiver is in writing.

Used Car Warranty Term

According to New Jersey’s Used Car Lemon Law, the length of the required warranty is based on the vehicle's odometer reading. The warranty must last

• 90 days or 3,000 miles (whichever comes first) if a vehicle has between 24,000 miles or less.  
• 60 days or 2,000 miles (whichever comes first) if a vehicle has between 24,001 and 59,999 miles.
• 30 days or 1,000 miles (whichever comes first) if a vehicle has between 60,000 and 100,000 miles.

Vehicles are not covered if they:

• Are sold for less than $3,000
• Are seven or more years old
• Have been declared a total loss by an insurance company
• Have odometer readings of more than 100,000 miles
• Were not purchased from dealers

Used Car Warranty Coverage

According to New Jersey’s used car Lemon Law, the dealer must correct “a material defect of the used vehicle.” The law specifically covers:

• The 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. (Housing, engine blocks and cylinder heads are covered only if they are damaged by the 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 (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.

A used car is considered a lemon if the dealer has failed to fix a defect after three attempts or the vehicle has been out of service for a total of 20 days while the dealer is trying to fix it. The consumer must pay a $50 deductible for each repair of each covered item.

Other Laws Applicable to New and Used Cars

In addition to New Jersey’s Used Car Lemon Law, there are other laws on the books that can help you get justice if you have a lemon. These include the Magnuson-Moss Warranty Act, the Warranty of Merchantability, the Truth in Lending Act, and the Federal Odometer Act.