Buying a car

New Jersey Used Car Lemon Law: What's Covered and What to Do

NJ's Used Car Lemon Law covers dealer-sold cars up to 7 model years old, 100,000 miles and $3,000+. See the required warranty, what's covered and your remedies.

By the NJCarListings.com team · Updated September 27, 2026 · 2 min read

New Jersey is one of the few states with a used car lemon law. If you buy an eligible used car from a dealer and a major part fails soon after, the dealer has to fix it — and if they can't, you may be entitled to a refund. Here's who's covered and what to do.

Which cars are covered

The NJ Used Car Lemon Law applies when you buy a used car from a licensed dealer and the car:

  • is seven model years old or newer,
  • has 100,000 miles or fewer, and
  • costs at least $3,000.

It does not cover private-party sales. When you buy from an individual, the car is sold as-is.

The required warranty

For covered cars, the dealer must give you a warranty on the major powertrain parts. How long it lasts depends on the mileage when you buy:

Mileage at purchaseWarranty
24,000 miles or less90 days or 3,000 miles, whichever comes first
24,001–60,000 miles60 days or 2,000 miles, whichever comes first
60,001–100,000 miles30 days or 1,000 miles, whichever comes first

What the warranty covers

The warranty covers the parts that make the car go:

  • Engine — internal lubricated parts
  • Transmission — automatic or manual, internal parts
  • Drive components — front-wheel and rear-wheel drive parts
  • Related seals, gaskets and bearings

It doesn't cover things like brakes, electronics, air conditioning or wear items. Ask the dealer about any extended warranty or service contract separately, and read what it covers.

When is it a "lemon"?

A covered car may qualify as a lemon if a covered defect:

  • still isn't fixed after the dealer has tried three times, or
  • keeps the car out of service for 20 or more days in total.

If so, the dealer must replace the car or refund the purchase price, less sales tax, title and registration fees and a reasonable deduction for your use of the car.

What to do if something goes wrong

  1. Report it to the dealer right away, in writing, and keep a copy.
  2. Keep every repair order — dates, mileage, what was wrong and what was done.
  3. Count repair attempts and days out of service.
  4. If the dealer can't fix it, contact the NJ Division of Consumer Affairs Lemon Law Unit about the dispute process, or talk to a lemon-law attorney.
Tip: Before you buy, confirm the car's model year, mileage and price put it inside the lemon law, and ask the dealer to put the warranty terms in writing.

Protect yourself anyway

The lemon law is a safety net, not a substitute for checking the car. Get a vehicle history report and an independent pre-purchase inspection, and use our test drive and inspection checklist.

Shopping now? Browse used cars from NJ dealers or see local dealers.

Frequently asked questions

Does the NJ used car lemon law cover private sales?
No. It applies only to used cars bought from licensed dealers. Private-party sales are as-is.
How long is the NJ used car lemon law warranty?
90 days or 3,000 miles for cars with 24,000 miles or less; 60 days or 2,000 miles for 24,001–60,000 miles; and 30 days or 1,000 miles for 60,001–100,000 miles — whichever comes first.
When is a used car a lemon in New Jersey?
When a covered defect isn't fixed after three repair attempts, or the car is out of service for 20 or more total days. The dealer must then replace it or refund the purchase price, less certain deductions.

This guide is general information, not legal or tax advice. Fees and rules change — check nj.gov/mvc before you go.