The lessor must provide a separate notice in the event you are responsible for any early termination deficiency (gap) if your vehicle is stolen, confiscated or damaged and declared a total loss by your insurance company.Other protections apply if your vehicle is held as a trade-in by the lessor pending execution of the lease. If you make a payment prior to lease signing, you are entitled to a refund if your application is not approved.The lessor must also post a sign stating that a sample lease agreement is available upon request. Upon request, the lessor must provide you with a sample lease agreement.The New York Auto Leasing Law, provides important consumer protections before, during and at lease termination. When making your lease decision, compare these disclosed amounts along with the comparison of the monthly payment, total lease charges, mileage allowance, excess mileage charges, purchase option and other key lease features. If no additional early termination charge is disclosed, then the lessor cannot charge any amount above the actuarial lease balance (other than any past due payments or other amounts you owe.)īe sure to ask for these amounts when shopping for a lease. This disclosure permits you to compare the early termination charges of different leases.
Lease residual value plus#
Be sure to compare the annual mileage on which the residual value is based.Īdditional early termination charge: This amount plus the actuarial lease balance determines the maximum early termination charge. The adjusted capitalized cost and the residual value determine the depreciation portion of your monthly payments. The adjusted capitalized cost is the amount which serves as the basis for determining your monthly lease payment and your obligation at early termination.Įstimated residual value: This is the value of the vehicle at the end of the lease projected by the dealer/lessor. The adjusted capitalized cost is much like the amount financed in an installment sale.
Lease residual value registration#
These may include: insurance, warranties, registration fees and taxes.Īdjusted capitalized cost: The adjusted capitalized cost is the capitalized cost minus any downpayment, manufacturer's rebate or trade-in allowance. The capitalized cost is comparable to the selling price of the vehicle plus all related goods and services. The law requires consumer leases to disclose the following items:Ĭapitalized cost: This is the amount agreed upon at the beginning of the lease by you (the lessee) and the dealer/leasing company (the lessor) for all items and services included in the lease.
The New York law makes shopping for a new lease much easier because of the important information which must be disclosed to you in every lease. The major purpose of the Motor Vehicle Retail Leasing Act (MVRLA) is to insure that you are able to compare lease offers of competing lessors and that you are treated fairly throughout the lease transaction.
This brochure explains the key provisions of the law, which New York Attorney General's office and the Greater New York Automobile Dealers Association (GNYADA) supported in order to help consumers understand leasing better. The law governs all leases entered into in New York after Augand gives consumers important legal rights. New York was the first state in the nation to require comprehensive lease disclosures. With the average new vehicle costing over $20,000, it is also a major financial decision. Whether to buy or lease a motor vehicle is one of the most important decisions faced by consumers.