Lemon Law In Nj: Private Sales Included?

Lemon laws are designed to protect consumers from defective vehicles. In the US, each state has its own lemon law, and the Magnuson-Moss Warranty Act acts as a federal lemon law. In New Jersey, the lemon law protects consumers who purchase vehicles that develop repeat defects or lengthy unusable periods during the first two years or 24,000 miles. The law covers used passenger cars, purchased from a licensed car dealership, which are seven model years old or less. The New Jersey Used Car Lemon Law specifically excludes vehicles sold for less than $3,000, those that are more than seven model years old, and those that were not purchased from a dealer. Notably, private party sales are covered under the federal lemon law and most state lemon laws, including New Jersey's, as long as the vehicle was sold with some type of warranty.

What is a 'lemon'?

In the context of Lemon Law, a "lemon" is a vehicle with a defect that continues to exist after a "reasonable number of repair attempts". The exact definition of a "lemon" varies from state to state, but generally, it refers to a recently purchased or leased vehicle with defects that the manufacturer or authorized dealership cannot correct despite multiple attempts to do so.

Lemon laws exist to protect consumers from defective vehicles and to hold manufacturers accountable for the vehicles they sell. In the United States, every state has its own Lemon Law, and the Magnuson-Moss Warranty Act serves as a federal Lemon Law.

To be considered a lemon, a vehicle typically must have a defect that substantially impairs its use, value, or safety. The defect must be reported to the manufacturer while the vehicle is still under warranty and must persist after several repair attempts. Most states provide manufacturers with at least three chances to resolve the issue, and a vehicle may be deemed a lemon if it is out of service for a total of 20 to 30 days within a certain period (often the first 12, 18, or 24 months after the original purchase date).

If a vehicle is deemed a lemon, consumers have certain rights and protections under Lemon Law. They may be entitled to a refund, a replacement vehicle, or monetary compensation. It is important to consult with an attorney who specializes in Lemon Law to understand the specific laws and protections in each state.

What is covered by lemon law?

Lemon Laws cover vehicle "nonconformities", or defects. This includes any malfunctioning or defective parts that substantially impair the vehicle's use, value, or safety.

In the case of New Jersey, the Lemon Law covers new motor vehicles that develop repeated defects or become unusable for lengthy periods during the first two years or 24,000 miles (whichever comes first). The Lemon Law also applies to used vehicles with different time and mileage restrictions.

The New Jersey Lemon Law covers any consumer who buys, leases, or registers a new passenger vehicle or motorcycle in the state. It is important to note that the Lemon Law does not cover commercial vehicles or the living quarters of motor homes.

For a used car to be covered under the New Jersey Lemon Law, it must be purchased from a licensed car dealership, be seven model years old or less, have a purchase price of at least $3,000, and have a mileage of less than 100,000 miles at the time of purchase.

The covered parts under the Lemon Law include the engine, transmission, front-wheel drive, and rear-wheel drive.

If you suspect that your vehicle is a lemon, it is important to notify the dealer or manufacturer right away and keep a complete record of all receipts and communications.

What is the lemon law statute of limitations?

Lemon Law claims are subject to statutes of limitations, which vary from state to state. However, the Magnuson-Moss Warranty Act, which applies across all states, allows you to file a claim for up to four years after your warranty was breached. This means that for vehicles, you have four years to file a claim after the first failed repair attempt.

In Washington D.C., you must file a claim within three years of the date you first reported the nonconformity to the manufacturer or its authorised dealer.

What to do if your repair record shows no problems?

If your repair record shows no problems, it's important to note that there is still a trail of documentation that you may not have access to. This includes customer copies, warranty payment documents, dealership bookkeeping, and hard copies with original notes made by the mechanic. Sometimes, the customer copy will be stamped with "Could Not Duplicate Customer Concern", while the hard copy contains notes indicating the opposite. This discrepancy can leave your vehicle in need of repairs and potentially unsafe to drive.

In such cases, it is recommended to consult with an attorney who can carefully source and investigate all existing paperwork to determine if any vehicle problems were noted upon acceptance. Even if your repair records show no issues, you may still have a case. It is in your best interest to contact an attorney as soon as you suspect an issue, as they can help increase your chances of success and guide you through the process.

What to do if your car was sold 'as-is'?

If your car was sold "as-is" in New Jersey, it means that the vehicle is being sold without any warranty and that you, the consumer, are solely responsible for the cost of any repairs to that vehicle.

However, this does not mean that you have no rights. In New Jersey, a car dealer cannot lawfully label a vehicle "as-is" if it comes with some type of warranty. Additionally, the Magnuson-Moss Warranty Act prevents sellers from disclaiming implied warranties if a written warranty or service contract is provided within 90 days of the sale. Implied warranties guarantee that the product will perform at a level of quality that you would expect from another similar product.

If your car was sold "as-is" and you believe that the dealer has violated New Jersey's consumer protection laws, you may have grounds for a consumer fraud claim. Under the New Jersey Consumer Fraud Act, car dealers are required to provide specific disclosures and are prohibited from engaging in certain conduct. For example, dealers must disclose any material defects in the mechanical condition of the vehicle prior to the sale and are prohibited from misrepresenting the mechanical condition of the vehicle. If the dealer fails to make the required disclosures or engages in prohibited conduct, you may be able to recover damages, attorney's fees, and a refund of money lost due to the violation.

It is important to note that the laws and regulations regarding "as-is" car sales may change over time, and there may be factual differences between your case and the information provided here. Therefore, it is always recommended to consult with a licensed attorney in New Jersey to review your specific situation and determine your legal options.

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