EFFECTIVENew JerseyApr 1, 2026✓ Human reviewed

New Jersey overhauled dealership warranty and recall reimbursement rules

New Jersey P.L. 2025, c.140 took effect April 1, 2026. The law expands franchisor-paid repair reimbursement to include diagnostic work and recall/service-plan work, revises retail labor-rate, labor-time and parts-markup calculations, adds protections around chargebacks and part-price manipulation, addresses electric-propulsion-battery returns, and creates compensation for certain used vehicles held under stop-sale or do-not-drive recall notices when parts are unavailable.

dealerfixed opswarrantyrecalldiagnosticsreimbursement
What to check

New Jersey dealership fixed-ops teams should review warranty/recall claim workflows, diagnostic-time capture, retail-rate and parts-markup submissions, battery-return procedures, chargeback disputes and stop-sale inventory compensation against the current statute.

Official evidence

Source and verification

Verified
Sep 21, 2026
Applies to
Dealership fixed ops
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Informational only; not legal advice. We summarize the reviewed change and link directly to the official source so you can verify it.