NJ auto warranty question

B

boanon

Member
Jurisdiction
New Jersey
What is the name of your state? What is the name of your state? NJ

I have a 2018 car that I purchased new in 2018 and purchased a warranty from the manufacturer (Chrysler) that was to cover bumper to bumper for 7 years with no mileage limit. A little over a month ago the transmission went. The claim was ultimately approved and a rep from Chrysler said they would cover a rental for the duration of the repair. By some miracle they found a transmission as they are on indefinite back order, but it was a failure out of the box and at this time there is no date available for the part as there are literally none available. They called today and offered a buy out that is $9000 short of what is owed but reflects the blue book value. This puts me in a situation where a repair is not possible and purchasing something new with that much negative equity is impossible and unaffordable. Does anyone know what rights I have in this situation?
 
boanon said:
What is the name of your state? What is the name of your state? NJ

I have a 2018 car that I purchased new in 2018 and purchased a warranty from the manufacturer (Chrysler) that was to cover bumper to bumper for 7 years with no mileage limit. A little over a month ago the transmission went. The claim was ultimately approved and a rep from Chrysler said they would cover a rental for the duration of the repair. By some miracle they found a transmission as they are on indefinite back order, but it was a failure out of the box and at this time there is no date available for the part as there are literally none available. They called today and offered a buy out that is $9000 short of what is owed but reflects the blue book value. This puts me in a situation where a repair is not possible and purchasing something new with that much negative equity is impossible and unaffordable. Does anyone know what rights I have in this situation?
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Read the terms of your warranty.
 
I read the contract and I am being short changed a bit. It says the buyout will be the NADA average cash value, which is $16,887. They are offering me the KBB trade in price. However this is for when the repair exceeds the value of the car and they deny the claim and offer the payout. In this case they approved the claim.
 
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You bought a new car from a NJ dealer that they cannot fix and give back to you. That falls within the NJ lemon law if the car is less than 7 years old and has less than 100,000 miles on the odometer.

Call a NJ lemon law attorney for a consult. If successful, you may be able to get back the purchase price.
 
welkin said:
You bought a new car from a NJ dealer that they cannot fix and give back to you. That falls within the NJ lemon law if the car is less than 7 years old and has less than 100,000 miles on the odometer.

Call a NJ lemon law attorney for a consult. If successful, you may be able to get back the purchase price.
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It's not under 100k so it's not under lemon law. It's a breach of warranty issue. The warranty is for 7 years and no limit on mileage and is underwritten by Chrysler, it's not a 3rd party warranty.
 
boanon said:
No 17k is the cash value and 5k short of what I owe.
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That directly contradicts what you wrote in your original post.


boanon said:
It's not under 100k so it's not under lemon law. It's a breach of warranty issue. The warranty is for 7 years and no limit on mileage and is underwritten by Chrysler, it's not a 3rd party warranty.
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Without reviewing YOUR warranty (which is beyond the scope of an internet forum), there is no way that anyone here can determine if this is actually a breach of the warranty. Assuming that there is a breach of the warranty, and assuming that negotiations are not successful, then you are left with a lawsuit (unless such a suit is prohibited by the terms of the warranty). There really is nothing else that this forum can help with. You should speak to a local attorney about the matter.
 
boanon said:
5k short of what I owe.
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boanon said:
$9000 short of what is owed
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Was the $9k figure a typo?

Either way, more than $20k is a LOT still to be owing on a car bought 5 years ago.


Zigner said:
Assuming that there is a breach of the warranty, and assuming that negotiations are not successful, then you are left with a lawsuit (unless such a suit is prohibited by the terms of the warranty).
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Yup.
 

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