If your vehicle qualifies under the New Jersey Lemon Law, you may be entitled to a refund (repurchase) or replacement vehicle.
But one of the first questions most consumers ask is:
“How much will New Jersey Lemon Law deduct for mileage?”
New Jersey law allows the manufacturer to deduct a reasonable allowance for use, often called the:
- mileage offset
- mileage deduction
- usage fee
- repurchase offset
This deduction reduces the amount of money you receive in a lemon law buyback.
Below is a clear explanation of how the NJ Lemon Law offset works and how it is calculated.
What Is the New Jersey Lemon Law Offset?
New Jersey Lemon Law provides consumers with relief when a vehicle has a serious warranty defect that cannot be repaired after a reasonable number of attempts.
If the manufacturer repurchases the vehicle, they are allowed to deduct an amount for:
👉 the miles you drove before the defect first required repair.
This is meant to account for the consumer’s use of the vehicle.
New Jersey Lemon Law Offset Formula
New Jersey uses a formula that generally looks like:
(Miles driven before the first repair attempt ÷ 100,000) × Purchase price
New Jersey’s mileage offset is based on 100,000 miles, similar to Pennsylvania (and different from states that use 120,000).
What Mileage Is Used in NJ?
In most New Jersey cases, the mileage deduction is calculated based on:
✅ the odometer reading at the first repair attempt for the defect
not the mileage at buyback
This is extremely important because manufacturers sometimes try to use the total mileage, which increases the deduction.
New Jersey Lemon Law Offset Example
Let’s say:
- Purchase price: $45,000
- First repair attempt: 5,000 miles
NJ offset calculation:
5,000 ÷ 100,000 = 0.05
0.05 × $45,000 = $2,250
So the manufacturer may deduct about $2,250 from your repurchase refund.
Another Example
Vehicle price: $38,000
First repair attempt: 2,000 miles
2,000 ÷ 100,000 = 0.02
0.02 × $38,000 = $760
In this example, the deduction is only $760.
What Does “Purchase Price” Mean in New Jersey?
In many NJ Lemon Law repurchases, the refund amount may include:
- purchase price of the vehicle
- sales tax
- title and registration fees
- finance charges paid (sometimes)
- certain government fees
However, the mileage offset is typically calculated using the base purchase price portion of the refund.
Manufacturers may attempt to calculate the refund narrowly, so documentation matters.
Why the First Repair Date Matters So Much
The mileage deduction depends heavily on how soon the defect appeared.
If the defect started early, the offset is small.
If the defect was not reported until later, the offset can become much larger.
Example:
- First repair at 1,000 miles = small deduction
- First repair at 15,000 miles = much larger deduction
That’s why early repair records are extremely valuable.
Does the NJ Mileage Offset Apply to Leases?
Yes — New Jersey Lemon Law applies to leased vehicles, and a reasonable use deduction may still apply.
However, lease buyback calculations are structured differently and may include:
- lease payments made
- down payment / cap cost reduction
- payoff to the leasing company
- taxes and fees
The mileage offset is still a major factor.
Can the Manufacturer Add Other Deductions?
Possibly.
The mileage offset is separate from other deductions manufacturers may attempt, such as:
- excessive wear and tear
- missing equipment
- aftermarket modifications
Normal wear is usually expected, but significant damage can become a negotiation issue.
Can You Dispute the NJ Offset Amount?
Yes.
Consumers should verify the manufacturer used:
- the correct first repair mileage
- the correct repair date
- the correct purchase price
- the correct formula
Even small errors can change the offset by thousands of dollars.
NJ Lemon Law Offset Summary
Under New Jersey Lemon Law, the manufacturer’s mileage deduction is generally:
(Miles at first repair attempt ÷ 100,000) × purchase price
Key points:
- The mileage is usually based on the first repair attempt
- NJ uses 100,000 miles in the calculation
- The deduction is often smaller than consumers expect
- Manufacturers sometimes calculate it incorrectly
The Bottom Line
New Jersey Lemon Law buybacks typically include a mileage offset, but the deduction is formula-based and tied to early mileage.
Even with a deduction, many NJ consumers recover most of what they paid, including:
- down payment
- monthly payments
- taxes and fees
- loan payoff amounts
If your vehicle has repeated repair attempts or has been in the shop for an extended period, you may qualify for relief under NJ Lemon Law.
Need Help With a New Jersey Lemon Law Buyback?
If your vehicle has repeated warranty defects, you may be entitled to a refund, replacement, or cash settlement.
An attorney can help you:
- calculate the correct NJ mileage offset
- challenge improper deductions
- negotiate the strongest buyback terms
- guide you through the NJ lemon law process
The sooner you act, the easier it is to build a strong paper trail.
