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New Jersey's Used Car Lemon Law: The Warranty Dealers Must Give You
Most people buying a used car in New Jersey don't know this: when you buy from a licensed dealer, state law may give you a warranty automatically. There's nothing extra to buy and nothing to sign up for. Here's who qualifies, what it covers and what to do if the car turns out to be a lemon.
By AutoShuk · Updated · 6 min read
Key takeaways
- It applies to cars bought from licensed New Jersey dealers — not private sales.
- The car must cost more than $3,000, be no more than seven model years old, have 100,000 miles or less and never have been declared a total loss.
- The warranty runs 90, 60 or 30 days (or 3,000, 2,000 or 1,000 miles), depending on the mileage when you buy.
- It covers the engine and drivetrain. You pay a $50 deductible per repair.
Does your car qualify?
New Jersey's Used Car Lemon Law requires dealers to warranty a used passenger car when all of these are true:
- You bought it from a licensed used car dealer.
- It sold for more than $3,000.
- It's seven model years old or less.
- The odometer shows 100,000 miles or less.
- It has not been declared a total loss by an insurance company.
If you're not sure whether a particular car qualifies — the model-year cutoff in particular — ask the dealer before you sign, and get the answer in writing.
How long the warranty lasts
The coverage depends on the mileage when you buy the car. It ends at whichever limit you hit first — the days or the miles.
| Mileage at purchase | Warranty |
|---|---|
| 24,000 miles or less | 90 days or 3,000 miles |
| More than 24,000 but less than 60,000 | 60 days or 2,000 miles |
| 60,000 to 100,000 | 30 days or 1,000 miles |
So a car with 45,000 miles is covered for 60 days or 2,000 miles from the sale. Write down the odometer reading the day you take delivery.
Can the dealer ask you to waive it?
Sometimes. You can give up the warranty in exchange for a better price, but only on a car with more than 60,000 miles, and only in writing. On a lower-mileage car, the warranty can't be waived.
Read every page before you sign. If a waiver is in the paperwork, you're agreeing to buy without the state warranty. Weigh the discount against the cost of a single transmission or engine repair — and get an independent inspection first.
What's covered — and what isn't
The dealer must fix a material defect in a covered part if it happens during the warranty period. The covered parts are the expensive ones:
- Engine: internal lubricated parts, timing components, the water pump, seals and gaskets. The block, cylinder heads and housings are covered only if a failed internal lubricated part damages them.
- Automatic transmission and transfer case: internal lubricated parts, the torque converter, vacuum modulator, mounts, seals and gaskets.
- Manual transmission and transfer case: internal lubricated parts, mounts, seals and gaskets. Clutch parts are not covered.
- Front-wheel drive: internal lubricated parts, axle shafts, constant-velocity (CV) joints, front hub bearings, seals and gaskets.
- Rear-wheel drive: internal lubricated parts, propeller shafts, supports and U-joints, axle shafts and bearings, seals and gaskets.
Parts that aren't on that list — brakes, air conditioning or the infotainment screen, for example — aren't covered by this warranty. That's why a pre-purchase inspection still matters even on a car that qualifies. You pay a $50 deductible for each repair of each covered item.
If the car turns out to be a lemon
- Go back to the dealer right away. Report the problem as soon as it shows up, while you're still inside the warranty period, and bring the car in for repair.
- Keep a paper trail. Save every repair order, and note dates, mileage and what was done each time.
- Know the refund triggers. If the dealer can't fix the same defect after three attempts, or the car is out of service for repairs for a total of 20 days during the warranty period, you may be entitled to a refund of the full purchase price.
The dealer has a defense if the defect doesn't substantially impair the car's use, value or safety — a squeaky trim panel won't get you a refund; a transmission that slips will.
For help, Lakewood-area buyers can call the Ocean County Department of Consumer Affairs at 732-929-2105, or the state's Used Car Lemon Law Unit at 973-504-6226.
What about private sales?
The Used Car Lemon Law doesn't cover cars bought from private sellers. That doesn't make private sales a bad idea — prices are often lower — but it does mean the checking is all on you. Run the VIN through the free tools in our vehicle history guide and use our inspection checklist before you hand over any money.
Sources
- Ocean County Department of Consumer Affairs — Used Car Lemon Laws
- NJ Division of Consumer Affairs — Used Car Lemon Law
This guide is general information, not legal advice. It was checked against the official sources above in October 2026. If you have a dispute with a dealer, contact Consumer Affairs or an attorney.