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A1310 1R
[First Reprint]
ASSEMBLY, No. 1310
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman CODY D. MILLER
District 4 (Atlantic, Camden and Gloucester)
Assemblyman WILLIAM B. SAMPSON, IV
District 31 (Hudson)
Co-Sponsored by:
Assemblyman Hutchison, Assemblywomen Morales, Kane, Speight
and Bagolie
SYNOPSIS
���� "Used Car Buyers' Bill of Rights";
prohibits certain "as is" sales of used motor vehicles.
CURRENT VERSION OF TEXT
���� As reported by the Assembly Consumer Affairs
Committee on March 19, 2026, with amendments.
��
An Act
concerning the sales of used motor vehicles, amending and supplementing
P.L.1995, c.373, and repealing section 7 of P.L.1995, c.373.
����
Be It Enacted
by the Senate and General Assembly of the State of New Jersey:
���� 1.��� (New section)� Sections
1 through 5 of this act shall be known and may be cited as the �Used Car
Buyers� Bill of Rights.�
���� 2.��� (New section)
1
a.
1
It
shall be an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.) for
a dealer to sell or offer for sale a used motor vehicle as �certified� or any
other similar descriptive term that implies the vehicle complies with the terms
of a used motor vehicle certification program if:
����
1
[
a.
]
(1)
1
��� the
dealer knows or should have known that the odometer on the used motor vehicle
does not indicate actual mileage, has been rolled back or otherwise altered to
show fewer miles, or was replaced with an odometer showing fewer miles than
actually driven;
����
1
[
b.
]
(2)
1
�� the
dealer knows or should have known that the used motor vehicle was reacquired by
the vehicle's manufacturer or a dealer pursuant to
1
[
state
]
State
1
or
federal warranty laws;
����
1
[
c.
]
(3)
1
��� the
title to the used motor vehicle has been inscribed with the notation �flood,�
�junk,� �Lemon Law Buyback,� �manufacturer repurchase,� �nonrepairable,�
�salvage,� or
1
a
1
similar
title designation required by this State or another state;
����
1
[
d.
]
(4)
1
�� the
used motor vehicle sustained damage in an impact, fire, or flood which, after
repair
1
and
1
prior
to sale, substantially impairs the use or safety of the vehicle;
����
1
[
e.
]
(5)
1
��� the
dealer knows or should have known that the used motor vehicle sustained frame
damage which, after repair
1
and
1
prior
to sale, substantially impairs the use or safety of the vehicle;
����
1
[
f.
]
(6)
1
��� prior
to sale, the dealer fails to provide the consumer with a completed inspection
report indicating all the components were inspected;
����
1
[
g.
]
(7)
1
�� the
dealer disclaims any warranties of merchantability on the used motor vehicle;
or
����
1
[
h.
]
(8)
1
�� the
term �certified,� or any other similar descriptive term, is used in a manner
that is untrue or misleading or that would cause any advertisement to be in
violation of section 2 of P.L.1960, c.39 (C.56:8-2).
����
1
b.
1
This
section does not abrogate or limit any disclosure obligation imposed pursuant
to any other law.
���� 3.��� (New section)� a.� A
dealer shall not sell or offer for sale a used motor vehicle to a consumer
without offering the consumer a contract cancellation option agreement that
allows the consumer to return the used motor vehicle without cause; provided
however, the provisions of this section shall not apply to
1
a
used motor vehicle that
1
:
���� (1)�
1
[
a used motor
vehicle having
]
has
1
a purchase price of $40,000 or more;
���� (2)�
1
[
a used motor
vehicle which has been
]
was
1
declared a total loss by an insurance company or reported as a total loss in a
National Motor Vehicle Title Information System history report; or
���� (3) �
1
[
a used motor
vehicle which has been
]
was
1
issued a salvage certificate of title in accordance with the provisions of
P.L.1983, c.323 (C.39:10-31 et seq.), or reported as a salvage vehicle in a
National Motor Vehicle Title Information System history report.
���� b.��� The fee for a contract
cancellation option agreement shall not exceed the following:
���� (1)� $75 for a used motor
vehicle with a cash price of $5,000 or less;
���� (2) �$150 for a used motor
vehicle with a cash price of more than $5,000, but not more than $10,000;
���� (3) �$250 for a used motor
vehicle with a cash price of more than $10,000, but not more than $30,000; or
���� (4) �one percent of the
purchase price for a used motor vehicle with a cash price of more than $30,000,
but not more than $40,000.
As used in this
section, �cash price� excludes registration, transfer, titling, license, and
any optional business partnership automation fees.
���� c.���� A contract cancellation
option agreement shall be contained in a document separate from the contract or
other purchase agreement for a used motor vehicle and shall contain, at a
minimum, the following:
���� (1)� the name of the dealer
and the consumer;
���� (2)� a description and the
Vehicle Identification Number of the used motor vehicle purchased;
���� (3)� a statement specifying
the time within which the consumer shall exercise the contract cancellation
option and return the used motor vehicle to the dealer. The dealer shall not
specify a time that is earlier than the dealer�s close of business on the second
1
business
1
day
following the day on which the vehicle was originally delivered to the consumer
by the dealer;
���� (4)� a statement that clearly
and conspicuously specifies the dollar amount of any restocking fee the
consumer is required to pay to the dealer to exercise the contract cancellation
option.
���� The restocking fee shall not
exceed: $175 if the used motor vehicle cash price is $5,000 or less; $350 if
the used motor vehicle cash price is more than $5,000 but less than $10,000;
and $500 if the used motor vehicle cash price is $10,000 or more. The dealer
shall apply the fee paid by the consumer for the contract cancellation option
agreement toward the restocking fee. The fee for purchasing the contract
cancellation option agreement shall not otherwise be
1
[
subject to
setoff or refund
]
reduced or refunded
1
;
���� (5)� a statement specifying
the maximum number of miles that the used motor vehicle may be driven after its
original delivery by the dealer to the consumer to remain eligible for the
contract cancellation option. A dealer shall allow for the used motor vehicle
to be driven at least 250 miles under the contract cancellation option
agreement;
���� (6)� a statement that the
contract cancellation option agreement gives the consumer the right to cancel
the contract and obtain a full refund, minus the fee for exercising the
contract cancellation option; and that the right to cancel will apply only if,
within the time specified in the contract cancellation option agreement, the
following are personally delivered to the selling dealer by the consumer:
���� (a)�� a written notice
exercising the right to cancel the contract signed by the consumer;
���� (b)��
1
[
any
]
the
1
restocking fee specified
1
[
in
]
by
1
the
contract cancellation option agreement minus the fee for the contract
cancellation option agreement;
���� (c)�� the original contract
cancellation option agreement, contract for the used motor vehicle, and related
documents, if the dealer gave those original documents to the consumer;
���� (d)��
1
[
all
]
the
1
original titling and registration documents for the used motor vehicle, if the
dealer gave those
1
[
original
]
1
documents to the consumer; and
���� (e)�� the used motor vehicle,
free of all liens and encumbrances, other than any lien or encumbrance created
by or incident to the� contract, any loan arranged by the dealer, or any
purchase money loan obtained by the consumer from a third party, and in the same
condition as when it was delivered by the dealer to the consumer, except for
reasonable wear and tear and any defect or mechanical problem that manifests or
becomes evident after delivery that was not caused by the consumer, and which
shall not have been driven beyond the mileage limit specified in the contract
cancellation option agreement.
���� The contract cancellation
option agreement also may provide that the consumer will execute documents
reasonably necessary to effectuate the cancellation and refund and as
reasonably required to comply with this section; and
���� (7)��
1
[
at the bottom
of the contract cancellation option agreement,
]
1
a statement
1
at
the bottom of the contract cancellation agreement
1
that may
be signed by the consumer to indicate the consumer�s election to exercise the
right to cancel the contract under the terms of the contract cancellation
option agreement, and the last date and time by which the option to cancel may
be exercised, followed by a line for the consumer�s signature. A particular
form of statement is not required, but the following statement is sufficient:
�By signing below, I elect to exercise my right to cancel the contract for the
used motor vehicle described in this agreement.�� The consumer�s delivery of
the contract cancellation agreement to the dealer with the consumer�s signature
following this statement shall constitute sufficient written notice that the
consumer is exercising the right to cancel a contract pursuant to paragraph (6)
of this subsection.� The dealer shall provide the consumer with the statement
required by this paragraph in duplicate to enable the consumer to return the
signed cancellation notice and retain a copy of the cancellation agreement.
���� d.��� (1)� After the consumer
exercises the right to cancel a contract under the contract cancellation option
agreement, the dealer shall cancel the contract and provide the consumer with a
full refund, including the appropriate portion of the sales tax or other fees
paid, within three business days for a used motor vehicle purchased by cash,
credit or debit card, or bank loan, or 10 business days for a used motor
vehicle purchased by check.
���� (2)� If
1
[
the consumer
was not charged
]
a dealer accepts a used motor vehicle in lieu of the fee
1
for the
contract cancellation option agreement, the dealer shall return to the
consumer, within three business days after the consumer exercises the right to
cancel the contract,
1
[
any
]
the
1
used
motor vehicle the consumer conveyed to the dealer as a down payment or
trade-in.� If the dealer sold or otherwise transferred title to the used motor
vehicle that was conveyed as a down payment or trade-in, the full refund
described in paragraph (1) of this subsection shall include the fair market
value of the used motor vehicle left as a down payment or trade-in, or its
value as stated in the contract, whichever is greater.
���� (3)� If the consumer was
charged for the contract cancellation option agreement, the dealer shall retain
any motor vehicle the consumer conveyed to the dealer as a down payment or
trade-in until the consumer exercises the right to cancel or the right to cancel
expires. If the consumer exercises the right to cancel the contract, the dealer
shall return to the consumer, within three business days after which the
consumer exercises the right to cancel the contract, any motor vehicle the
consumer conveyed to the dealer as a down payment or trade-in.� If the dealer
has
1
[
inadvertently
]
1
sold or otherwise transferred
1
the
1
title
to the motor vehicle
1
[
as the result
of a bona fide error,
]
1
despite taking reasonable
1
[
procedures to
avoid that error, the inadvertent
]
measures to prevent the
1
sale or transfer of title
1
,
that action
1
shall not be deemed a violation of this paragraph, and the full refund
described in paragraph (1) of this subsection shall include the retail market
value of the motor vehicle conveyed as a down payment or trade-in, or its value
as stated in the contract, whichever is greater.
���� e.���� If the dealer received
a portion of the purchase price by credit card, or other third-party payer on
the consumer�s account, the dealer may refund that portion of the purchase
price to the credit card issuer or third-party payer for credit to the consumer�s
account.
���� f.���� Notwithstanding
subsection a. of this section, a dealer is not required to
1
:
����
(1)
1
offer a
contract cancellation option agreement if the consumer has exercised this right
with the dealer during the
1
[
immediately
]
1
preceding 30 days
1
[
. A dealer
shall not be required to
]
; or
����
(2)
1
� give
notice to a subsequent consumer that a used motor vehicle has been returned
pursuant to this section.�
���� This subsection does not
abrogate or limit any disclosure obligation imposed pursuant to any other law.
���� g.��� This section does not
affect or alter the legal rights, duties, obligations, or liabilities of the
consumer, the dealer, or the dealer�s representatives, that would exist in the
absence of a contract cancellation option agreement.� The consumer is the owner
of a used motor vehicle upon receipt of the vehicle from the dealer until it is
returned to the dealer pursuant to a contract cancellation option agreement.
���� h.��� Nothing in this section
is intended to affect the ability of a consumer to rescind the contract or
revoke acceptance under any other law.
����
1
i.��� The
provisions of this section shall not apply to sales of motorcycles, as defined
by R.S.39:1-1, or off-road vehicles as defined by section 32 of P.L.2009,
c.275, (C.39:3C-32).
1
���� 4.��� (New section)� A dealer
shall include with any contract to lease or purchase a used motor vehicle a
notice with a heading in at least 12-point bold type and the text in at least
10-point bold type, circumscribed by a line, immediately above the contract
signature line, that reads as follows:
THERE
IS NO CANCELLATION PERIOD UNLESS YOU OBTAIN A CONTRACT CANCELLATION OPTION
���� New Jersey law requires a
seller to offer a 2-day contract cancellation option on used vehicles with a
purchase price of less than $40,000, subject to certain statutory conditions.
This contract cancellation option is not available to the purchaser of a
motorcycle or an off-road vehicle.� New Jersey law does not provide for a
cancellation period for the sale of a vehicle with a purchase price of $40,000
or more.� Therefore, you cannot later cancel this contract simply because you
change your mind, decide the vehicle costs too much, or wish you acquired a
different vehicle.� After you sign below, you may only cancel this contract
with the agreement of the seller or for legal cause, such as fraud.� See the
vehicle contract cancellation option agreement for details.
���� 5.��� (New section)� A dealer
shall conspicuously display a notice, not less than eight inches high and 10
inches wide, in each sales office and cubicle of the dealer�s established place
of business where written terms of specific sale or lease transactions are
provided to consumers, and in each room of the dealer�s established place of
business where sale and lease contracts are regularly executed, stating the
following:
THERE
IS NO CANCELLATION PERIOD UNLESS YOU OBTAIN A CONTRACT CANCELLATION OPTION
���� New Jersey law requires a
seller to offer a 2-day contract cancellation option on used vehicles with a
purchase price of less than $40,000, subject to certain statutory conditions.
This contract cancellation option requirement does not apply to the sale of a
motorcycle or an off-road vehicle.� New Jersey law does not provide for a
cancellation period for vehicle lease contracts or purchase contracts for
vehicles with a purchase price of $40,000 or more.� Therefore, you cannot later
cancel a contract simply because you change your mind, decide the vehicle costs
too much, or wish you acquired a different vehicle.� After you sign a motor
vehicle purchase or lease contract, it may only be canceled with the agreement
of the seller or lessor or for legal cause, such as fraud.�� See the vehicle
contract cancellation option agreement for details.
���� 6.��� Section 2 of P.L.1995,
c.373 (C.56:8-68) is amended to read as follows:
���� 2.��� It shall be an unlawful
practice for a dealer:
���� a.���� To misrepresent the
mechanical condition of a used motor vehicle;
���� b.��� To fail to disclose,
prior to sale, any material defect in the mechanical condition of the used
motor vehicle which is known to the dealer;
���� c.���� To represent that a
used motor vehicle, or any component thereof, is free from material defects in
mechanical condition at the time of sale, unless the dealer has a reasonable
basis for this representation at the time it is made;
���� d.��� To fail to disclose,
prior to sale, the existence and terms of any written warranty, service
contract or repair insurance currently in effect on a used motor vehicle
provided by a person other than the dealer, and subject to transfer to a
consumer, if known to the dealer;
���� e.���� To misrepresent the
terms of any written warranty, service contract or repair insurance currently
in effect on a used motor vehicle provided by a person other than the dealer,
and subject to transfer to a consumer;
���� f.���� To fail to disclose,
prior to sale, the existence and terms of any written warranty, service
contract or repair insurance offered by the dealer in connection with the sale
of a used motor vehicle;
���� g.��� To misrepresent the
terms of any warranty, service contract or repair insurance offered by the
dealer in connection with the sale of a used motor vehicle;
���� h.��� To represent, prior to
sale, that a used motor vehicle is sold with a warranty, service contract or
repair insurance when the vehicle is sold without any warranty, service
contract or repair insurance;
���� i.���� To fail to disclose,
prior to sale, that a used motor vehicle is sold without any warranty, service
contract, or repair insurance; and
���� j.���� To
[
fail to
provide a clear written explanation, prior to sale, of what is meant by the
term "as is," if the
]
sell or offer for sale to a consumer a
used motor vehicle
[
is sold
]
"as is
[
.
]
,
"
unless
1
the
used motor vehicle has been
1
:
����
(1)
��
1
[
the used
motor vehicle which has been
]
1
declared a total loss by an insurance company, or reported as a total loss
in a National Motor Vehicle Title Information System history report, and
1
[
with
respect to which the consumer, at or prior to the time of sale, has been
advised in writing that the used motor vehicle has been declared a total loss
]
this
information is reported to the consumer in writing at or prior to the time of
sale
1
;
or
����
(2)
��
1
[
the used
motor vehicle which has been
]
1
issued a salvage certificate of title in accordance with the provisions of
P.L.1983, c.323 (C.39:10-31 et seq.), or reported as a salvage vehicle in a
National Motor Vehicle Title Information System history report, and
1
[
with
respect to which the consumer, at or prior to the time of sale, has been
advised in writing that the used motor vehicle is a salvage vehicle
]
this
information is reported to the consumer in writing at or prior to the time of
sale
1
.
(cf: P.L.1995, c.373, s.2)
���� 7.��� Section 3 of P.L.1995,
c.373 (C.56:8-69) is amended to read as follows:
���� 3.��� It shall be an unlawful
practice for a dealer to sell a used motor vehicle to a consumer without giving
the consumer a written warranty which shall at least have the following minimum
durations:
���� a.���� If the used motor
vehicle has
[
24,000
]
less than 40,000
miles
[
or
less
]
,
the warranty shall be, at a minimum, 90 days or
[
3,000
]
3,750
miles, whichever
comes first;
���� b.��� If the used motor
vehicle has
[
more
than 24,000
]
40,000
miles
or more,
but less than
[
60,000
]
80,000
miles, the
warranty shall be, at a minimum, 60 days or
[
2,000
]
2,500
miles, whichever comes first;
[
or
]
���� c.���� If the used motor
vehicle has
[
60,000
]
80,000
miles or more,
but less than 125,000 miles,
the warranty shall be, at a
minimum, 30 days or
[
1,000
]
1,250
miles, whichever comes first
[
,
except that a consumer may waive his right to a warranty as provided under
section 7 of this act.
]
;
or
����
d.��� If the used motor
vehicle has 125,000 miles or more, a consumer shall be, at a minimum, entitled
to any implied warranties created by law.
(cf: P.L.1995, c.373, s.3)
���� 8.��� Section 8 of P.L.1995,
c.373 (C.56:8-74) is amended to read as follows:
���� 8.��� If a dealer fails to
give a written warranty required by this act, the dealer nevertheless shall be
deemed to have given the warranty as a matter of law
[
, unless a waiver has been signed
by the consumer in accordance with section 7 of this act
]
.
(cf: P.L.1995, c.373, s.8)
���� 9.��� Section 10 of P.L.1995,
c.373 (C.56:8-76) is amended to read as follows:
���� 10.� The provisions of
sections 3, 4, and 5
of P.L.1995, c.373 (C.56:8-69 through C.56:8-71)
shall not apply to
1
a
used motor vehicle
1
:
����
a.
����
1
[
any used motor
vehicle
]
1
sold for less than $3,000;
����
b.
���
1
[
any used motor
vehicle
]
1
over seven
1
[
or more
]
1
model years old;
����
c.
����
1
[
any used motor
vehicle which has been
]
1
declared a total loss by an insurance company
, or reported as a total loss
in a National Motor Vehicle Title Information System history report,
and
1
[
with respect
to which the consumer, at or prior to the time of sale, has been advised
]
reported
to the consumer
1
in writing that the used motor vehicle has been declared a total loss
[
by an
insurance company
]
;
����
d.
���
1
[
any used
motor vehicle which has been
]
1
issued a salvage certificate of title in accordance with the provisions of
P.L.1983, c.323 (C.39:10-31 et seq.), or reported as a salvage vehicle in a
National Motor Vehicle Title Information System history report, and
1
[
with
respect to which the consumer, at or prior to the time of sale, has been
advised
]
reported to the consumer
1
in writing that the used motor vehicle is a salvage vehicle;
or,
����
e.
����
1
[
any used motor
vehicle
]
1
with more than
[
100,000
]
125,000
miles.
(cf: P.L.1995, c.373, s.10)
���� 10.� Section 7 of P.L.1995,
c.373 (C.56:8-73) is repealed.
���� 11.� This act shall take
effect on the first day of the second month next following the date of
enactment.