Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.
Impact
The bill would amend existing statutes concerning motor vehicle leasing, providing significant protections for consumers who find themselves in the difficult situation of a loved one’s passing. Under the new law, surviving family members or representatives would have the right to terminate the lease without incurring fees associated with early termination, although reasonable charges for excess wear, use, or mileage would still be applicable. This change is expected to create a more consumer-friendly leasing environment and establish clearer protocols for the termination of leases under such unfortunate circumstances.
Summary
Senate Bill 2372, introduced in New Jersey, addresses the early termination of motor vehicle leases in the event of a lessee's death. The bill ensures that dealers or lessors are required to permit the termination of leases without imposing any penalties when a lessee passes away. This legislative proposal aims to ease the financial burden on grieving families by eliminating the necessity to continue payments on a lease for a vehicle that they do not need following the death of the lessee.
Contention
While the bill is largely designed to protect the interests of consumers, it may also raise questions and concerns among dealers and lessors who may find themselves facing restrictions on their ability to enforce lease agreements. Some industry representatives might argue that the prohibition on early termination fees could lead to increased costs elsewhere or more stringent leasing terms in general, especially if they perceive the risk of financial loss on terminated leases. Thus, discussions surrounding the bill could involve balancing consumer protections with the business interests of vehicle dealers and lessors.