Gov. Phil Murphy signed a bill on Sept. 11 that will shift the financial burden of owning a vehicle under recall from dealers and consumers to the automakers who are responsible for the defect.
The legislation had bipartisan support and was sponsored by Senate Republican Leader Anthony M. Bucco (R-25) that established the “Motor Vehicle Open Recall Notice and Fair Compensation Act.”
“New Jersey consumers and dealers shouldn’t be stuck paying the price for a manufacturer’s mistake,” said Bucco. “This law will now ensure that the financial burden and responsibility of vehicle recalls falls on the automakers who are responsible for the defects. It’s a fair, commonsense solution that will now protect New Jersey automobile customers and provide support for local dealerships.”
The law takes effect on April 1, 2026.
Among the provisions of the bill are: Prior to issuing a motor vehicle registration or renewal notice, the Motor Vehicle Commission (MVC) would be required to verify whether the vehicle has an open recall.
For a vehicle subject to an open recall, the MVC would be required to notify the owner and inform them that the vehicle’s manufacturer will repair the vehicle at no cost by an approved dealer. Automakers are required to cover all costs associated with warranty and recall compliance, including holding inventory, parts, and labor — preventing manufacturers from shifting expenses onto dealers or consumers.
The New Jersey Coalition of Automotive Retailers (NJ CAR) applauded the measure, saying “this legislation represents a major victory for New Jersey consumers, dealers, and their employees by ensuring fairness, safety, and accountability in how manufacturers handle recalls and warranty work on private vehicles.”
Laura Perrotta, president of NJ CAR, said “This legislation represents a critical step forward in protecting consumers, leveling the playing field for locally owned dealerships, and ensuring that automakers fairly compensate those who fix their mistakes,” said Laura Perrotta, President of NJ CAR.
“Bringing New Jersey’s laws in-line with our neighboring states will ensure that family-owned and operated businesses like ours, as well as all dealerships across the State, will be fairly compensated while keeping drivers safe on the road,” NJ CAR Chairman Ronald Baus Jr. said.
Besides NJ Car, the legislation had the support of the NJ AFL-CIO, the NJ State Council of Machinists, and the United Service Workers Union.
