Prohibits the imposition of certain fees at the expiration of a term on a motor vehicle lease which constitutes administrative, clerical or handling charges

3 Co-sponsors

• Martin J. Golden
• William J. Larkin Jr.
• Michael H. Ranzenhofer

Title of bill

An act to amend the personal property law, in relation to prohibiting certain provisions in retail lease agreements

Purpose

To prevent the imposition of certain fees at the expiration of a term on a motor vehicle lease which constitutes administrative, clerical or handling charges.

Summary of provisions

This bill adds a new section (j) to Section 337(14) of the Personal Property Law dealing with retail auto lease agreements.

Justification

The proposed new section prohibits charging a turn-in fee at the expiration of the term of the lease the basis of which is solely for administrative, handling or clerical charges.

When a lessee turn in an automobile at the end of the lease which has not been damaged nor exceeds the contractual mileage allowed, there is no basis for charging an additional amount called a turn-in fee for purely administrative costs for the dealer to accept the automobile.

This is a fee very seldom discussed with the lessee at the time that the lease is signed. The lesser often offers to waive such a fee as an incentive to the customer to do a subsequent lease. This discourages the consumer from seeking the best rate available.

Legislative history

2013-14 S.3573/A.466; 2011-12 S.1599; S.2009-10 S.1396; 2007-08 S.4124; 2005-06 S.2405; 2003-04 S.1032; 2001-02 S.2225

Fiscal implications

None to the State

Effective date

This act shall effect on the first of January next succeeding the date on which it shall have become a law and shall apply to leases executed on and after such date.