New Jersey Lemon Law Refund Calculator

How the New Jersey buyback is calculated

Under the New Jersey Lemon Law.

• The New Jersey Motor Vehicle Warranty Act requires the manufacturer to accept return of the vehicle and give a full refund when it is unable to repair or correct a nonconformity within a reasonable time (N.J.S.A. 56:12-32). The manufacturer may offer a replacement instead, but you may reject the offer and demand a refund.
• The refund starts from the purchase price, which includes any stated credit or allowance for your trade-in, so enter the full price. It adds the cost of options or modifications arranged by the manufacturer or its dealer within 30 days after original delivery, and "any other charges or fees including, but not limited to, sales tax, license and registration fees, finance charges, reimbursement for towing" and the actual cost of renting an equivalent vehicle while yours was out of service. A stated trade-in credit that "grossly exceeds the true value" of your trade-in is not part of the refund (N.J.A.C. 13:45A-26.11).
• The use deduction is a "reasonable allowance for vehicle use": the mileage when you first presented the vehicle for correction of the defect, times the purchase price (the lease price for a lease), divided by 100,000 miles (N.J.S.A. 56:12-30). Miles you drive after that first visit do not increase it. The calculator multiplies the price plus options; the regulation says "total purchase price", which may be read to include taxes and fees, so your allowance could be somewhat larger.
• On a $35,000 car first brought in for the defect at 10,000 miles, the allowance is (10,000 / 100,000) x $35,000 = $3,500, leaving roughly $31,500 before the charges and fees above are added.
• The Act has no damages multiplier. It trebles damages only where a manufacturer's appeal of a Division decision had no reasonable basis or was frivolous (N.J.S.A. 56:12-37(d)). In an action in Superior Court or before the Division, "a prevailing consumer shall be awarded reasonable attorney's fees, fees for expert witnesses and costs" (§ 56:12-42), in addition to the refund. The Consumer Fraud Act is a separate claim.
• The Used Car Lemon Law refund is different: the full purchase price excluding sales taxes, title and registration fees, less an allowance for excessive wear and tear and a deduction for personal use set by the IRS business mileage rate (N.J.S.A. 56:8-71(a); 56:8-67). This calculator does not estimate it.

New Jersey lemon law: frequently asked questions

How much can I recover under the New Jersey lemon law?

A new-vehicle refund is the purchase price including any stated trade-in credit, options added within 30 days of delivery, sales tax, license and registration fees, finance charges, towing and rental of an equivalent vehicle during the out-of-service period, less the allowance for vehicle use. The statute lists these charges with "including, but not limited to", so other charges or fees may also count; the calculator adds only the items you enter. Run your numbers through our calculator to see a personalized estimate.

How does the mileage deduction work?

The allowance is the mileage when you first presented the vehicle to the dealer or manufacturer for correction of the nonconformity, times the purchase price, divided by 100,000. A car first presented at 10,000 miles loses 10 percent of its price to the allowance, and miles you drive afterward do not increase it. For a lease the multiplicand is the lease price.

What is the New Jersey Lemon Law Unit and how does the hearing work?

The Division of Consumer Affairs' Lemon Law Unit accepts a new-vehicle application once you have given the manufacturer the certified-mail notice and its 10 days to repair, and you pay a $50 filing fee that is recoverable as a cost if you prevail. The hearing before the Office of Administrative Law is set no later than 20 days after the application is accepted, a written decision follows within 20 days of the hearing, and the Director adopts, rejects or modifies it within 15 days (N.J.S.A. 56:12-37). You may sue in Superior Court instead, but a Division decision is binding and precludes a later Superior Court action under the Act (§ 56:12-39). These are estimates of how the forum works, not legal advice about which path fits your case.

Do I have to pay the attorney out of my recovery?

Under the Motor Vehicle Warranty Act, a prevailing consumer shall be awarded reasonable attorney's fees, fees for expert witnesses and costs in an action against a manufacturer in Superior Court or before the Division (N.J.S.A. 56:12-42); the award is in addition to the refund, not taken from it. The Used Car Lemon Law has no fee clause, and the Division's used-car brief says attorney fees will not be part of that refund. What you owe your own attorney depends on your agreement with them.

What deadlines apply?

The Motor Vehicle Warranty Act applies to repairs and days within the first 24,000 miles or two years from original delivery, whichever is earlier, and the regulations say the manufacturer must receive your certified-mail notice within that term. Neither lemon law states a period for a Division application or a suit; the UCC allows four years for an action for breach of a contract for sale (N.J.S.A. 12A:2-725), and the statutes do not say whether that period applies to a lemon-law claim, so do not wait.