New Jersey overhauled dealership warranty and recall reimbursement rules
CheckNew 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.
Applies toDealership fixed ops
Details & evidence
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.
Official evidenceNew Jersey Legislature — P.L. 2025, c.140 / N.J.S.A. 56:10-15 ↗ · verified Sep 21, 2026