Outcomes
What compensation can you receive?
When a New Jersey claim succeeds, section 56:12-32 requires the manufacturer to accept the car back and refund you. It may offer a replacement instead, but the statute gives you the last word: you can reject a replacement and demand the refund. If you do take a replacement on a financed car, the manufacturer has to move your loan across to it.
The refund is built from the full purchase price, and the statute lists what goes into it:
- the purchase price, including any stated credit for your trade-in;
- options or modifications the manufacturer or dealer arranged or installed within 30 days of delivery;
- sales tax, license and registration fees, and finance charges;
- towing, and the cost of renting an equivalent car while yours was out of service for the defect;
- through the state process, the $50 filing fee and reasonable attorney's fees, expert fees and costs (N.J.A.C. 13:45A-26.11).
The refund goes to you and to any lender, as your interests appear on the Motor Vehicle Commission's records. One point the manufacturer may raise at the hearing: if your trade-in allowance grossly exceeded what your old car was really worth, it can ask the judge to cut the refund down to the true value. It has to prove that, and the rules point to the N.A.D.A. used car guide as evidence.
The allowance for use, in one line
New Jersey deducts a reasonable allowance for vehicle use, and section 56:12-30 fixes the formula: the mileage when you first brought the car in for the defect, times the purchase price, divided by 100,000. Miles you drove after that first visit are not charged. The Division's brochure works an example: a $19,500 car first taken in at 9,500 miles carries a deduction of $1,853, for a refund of $17,647 before the other items are added. So the odometer reading on your first repair order is the number that matters most, and the earlier you report the fault, the smaller the deduction.
- Find the odometer reading on the first repair order for the defect.
- Multiply that mileage by the purchase price.
- Divide by 100,000. That's the deduction, and miles you drive after that first visit don't add to it.
Leased cars
A leased car gets the same remedies (section 56:12-32(b)). The lease is terminated with no early-termination penalty. You get back what you actually paid under the lease, including the charges listed above, less the same use allowance, and the manufacturer settles up with the leasing company separately.
Attorney's fees are written into the statute. Under section 56:12-42, a consumer who prevails, in Superior Court or before the Division, shall be awarded reasonable attorney's fees, expert witness fees and costs, paid by the manufacturer. Repairs you paid for after the first 12,000 miles or first year, where the warranty did not cover them, are recoverable as a cost too (section 56:12-31).
A buyback does not vanish. Section 56:12-35 bars a returned car from being resold or re-leased in New Jersey unless the next buyer gets a written warning, in bold type, that it was returned because a defect was not fixed, and the Motor Vehicle Commission is notified. The Division publishes a list of vehicles branded under the New Jersey Lemon Law. Outcomes depend on the facts of each case, so no attorney can tell you the result in advance.