Replacement Vehicle Under NJ Lemon Law

N.J.S.A. § 56:12-32 gives consumers the option of accepting a comparable replacement vehicle instead of a cash refund. Most consumers choose refund.

What “comparable” means

• Same model year or newer.
• Same make and model.
• Comparable trim.
• Comparable factory options.

What the manufacturer covers

• Replacement vehicle at no cost beyond what was already paid.
• New NJ 6.625% sales tax — the manufacturer pays sales tax on the replacement.
• New title, registration, license fees.
• Incidental damages refunded.

Why most buyers choose refund instead

Refund is preferred because of depreciation, “comparable” disputes, loss of flexibility, loan complications, trim/options availability.

When replacement makes sense

• You specifically love the model.
• The original purchase was deeply customized.
• Vehicle access continuity matters.
• The replacement sales-tax savings are material vs. buying a different vehicle.

Bottom line

Replacement is a legitimate NJ Lemon Law remedy but rarely the consumer’s first choice. Most consumers prefer the refund plus CFA damages combination available through court action.

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