Lemon Laws in New Jersey and New York – Alan N. Walter, Counsel

SUMMARY New Jersey and New York lemon laws protect car buyers from defective vehicles. In New Jersey, coverage lasts 24 months or 24,000 miles with presumption after 3 repair attempts or 20 days out of service. New York provides 18 months or 18,000 miles coverage with presumption after 4 repair attempts or 30 days out of service. Both states offer refunds or replacement vehicles for qualifying lemons.

What exactly is a “lemon”?

A lemon is a vehicle with a substantial defect or recurring problem that significantly impairs its use, value or safety. The key distinction is that the defect must persist despite reasonable repair attempts by an authorized dealer or manufacturer. Minor issues like cosmetic scratches or easily fixable problems typically don’t qualify a vehicle as a lemon.

Common lemon issues include engine problems that cause stalling or failure to start, transmission issues affecting shifting or performance, brake system malfunctions, electrical problems affecting essential functions and safety defects like airbag malfunctions.

How does New Jersey’s lemon law protect consumers?

Coverage: New Jersey’s lemon law protects buyers and lessees of new vehicles registered within the state. The law also extends to certain used vehicles and small businesses operating five or fewer vehicles.

Time and Mileage Limits: Protection applies during the first 24 months of ownership or the first 24,000 miles driven, whichever occurs first.

Presumption of Lemon Status: Your vehicle is legally presumed to be a lemon if the same substantial defect persists after three reasonable repair attempts, or your vehicle has been out of service for repairs for 20 or more cumulative days.

Available Remedies: If your vehicle qualifies as a lemon, you’re entitled to either a comparable replacement vehicle or a full refund of the purchase price (minus a reasonable mileage deduction).

Used Car Protections: New Jersey requires dealers to provide warranties on used vehicles. For cars with fewer than 24,000 miles the warranty is 90 days or 3,000 miles (whichever comes first). For cars with 24,001 to 60,000 miles the warranty is 60 days or 2,000 miles. For cars with 60,001 to 100,000 miles the warranty is 30 days or 1,000 miles. If repairs cannot be completed during the warranty period, you may be entitled to a refund.

How does New York’s lemon law protect consumers?

Coverage: New York’s lemon law covers buyers and lessees of new vehicles purchased or leased within the state. Many used vehicles are also protected under separate provisions.

Time and Mileage Limits: Protection applies during the first 18 months of ownership or the first 18,000 miles driven, whichever comes first.

Presumption of Lemon Status: Your vehicle is legally presumed to be a lemon if the same substantial defect remains unfixed after four reasonable repair attempts, or your vehicle has been out of service for repairs for 30 or more cumulative days.

Available Remedies: Qualifying lemon owners receive either a comparable replacement vehicle or a full refund of the purchase price (minus a reasonable mileage deduction).

Used Car Protections: New York mandates dealer warranties based on vehicle mileage. For vehicles with 18,001 to 36,000 miles the warranty is 90 days or 4,000 miles. For vehicles with 36,001 to 79,999 miles the warranty is 60 days or 3,000 miles. For vehicles with 80,000 to 100,000 miles the warranty is 30 days or 1,000 miles.

Do small businesses have lemon law rights?

Absolutely. Both New Jersey and New York extend lemon law protections to qualifying small businesses. In New Jersey businesses operating five or fewer vehicles are covered under the same terms as individual consumers. In New York small businesses may qualify for lemon law protection, though specific eligibility requirements should be verified with legal counsel.

This means if your company vehicle repeatedly breaks down or has persistent defects, your business may be entitled to the same refund or replacement remedies available to individual consumers.

What steps should I take if I suspect my car is a lemon?

First, document everything meticulously. Keep copies of all repair orders, invoices and receipts. Save correspondence with dealers and manufacturers. Photograph any visible defects or damage. Maintain a detailed log of problems and repair dates.

Second, track out-of-service time carefully. Record exact dates when your vehicle is dropped off and picked up. Count cumulative days, not just individual repair visits. Include time for obtaining parts if the delay is unreasonable.

Third, give the manufacturer proper notice. Send written notification describing the defect to the manufacturer using certified mail to ensure delivery confirmation. Keep copies of all correspondence.

Fourth, follow proper procedures. Allow reasonable repair attempts at authorized dealerships. Don’t attempt repairs at independent shops as this may void your rights. Consider using your state’s arbitration program before pursuing litigation.

Fifth, consult legal expertise. Contact a qualified lemon law attorney for case evaluation. Many attorneys work on contingency, meaning no upfront costs. Legal representation can navigate complex manufacturer negotiations.

Why is timing so critical in lemon law cases?

Lemon law protections operate within strict statutory timeframes. Missing these deadlines can permanently forfeit your rights to remedies. In New Jersey the limit is 24 months or 24,000 miles. In New York the limit is 18 months or 18,000 miles. Once these limits expire, manufacturers are no longer obligated to provide lemon law remedies even if your vehicle continues experiencing the same defects. This makes early action essential for preserving your legal options.

What if the manufacturer offers a settlement?

Manufacturers often propose settlements before formal lemon law proceedings. While these offers might seem attractive, settlement amounts may be less than full lemon law remedies and you may waive future legal rights by accepting. Consult with a lemon law attorney before accepting any offer. Evaluate whether the settlement truly compensates for your losses and inconvenience.

Are there any costs involved in pursuing a lemon law claim?

Most states including New Jersey and New York have “fee-shifting” provisions in their lemon laws. This means if you successfully prove your case, the manufacturer typically must pay your reasonable attorney fees and costs. Many lemon law attorneys work on contingency arrangements requiring no upfront payment from clients.

Quick Reference: Lemon Law Checklist

If You Suspect a Lemon Take These Actions Immediately:

Document the problem by writing down exactly what’s wrong and when it occurs. Visit an authorized dealer since only repairs at certified locations count. Keep all paperwork including every repair order, receipt and correspondence. Track repair attempts by counting each visit for the same problem. Monitor out-of-service time by recording dates your car is in the shop. Notify the manufacturer by sending written notice via certified mail. Act quickly and don’t wait until time or mileage limits expire. Consult an attorney to get professional advice on your specific situation.

Key Numbers to Remember:

In New Jersey your vehicle is covered for 24 months or 24,000 miles, whichever comes first. The law presumes a lemon after 3 repair attempts for the same problem or 20+ cumulative days out of service.

In New York your vehicle is covered for 18 months or 18,000 miles, whichever comes first. The law presumes a lemon after 4 repair attempts for the same problem or 30+ cumulative days out of service.

Remember: This information is for general guidance only and should not be considered legal advice. Lemon law cases can be complex and individual circumstances vary significantly. For specific legal advice regarding your situation, consult with a qualified attorney experienced in automotive lemon law cases in your state.