New Jersey Senate Bill S2014

New Jersey 2022-2023 Regular Session

• Introduced: 3/3/22
• Refer: 3/3/22

Caption

Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.

Impact

This legislation seeks to alleviate the burden on the surviving family members of the lessee, ensuring they are not forced into continuing lease obligations or purchasing the vehicle after the death of their loved one. It explicitly prohibits any lease agreement from requiring the decedent's surviving spouse, family member, guardian, or estate administrator to purchase the vehicle, buy out the remaining lease, or carry on with the lease under its original terms. This change aims to promote consumer protection in the leasing industry.

Summary

Bill S2014 introduced in the New Jersey legislature aims to provide a simplified process for terminating motor vehicle leases in the unfortunate event of a lessee's death. Under this bill, if a lessee passes away, the lease can be terminated once the vehicle is returned to the dealer or lessor. It emphasizes that no fees should be imposed for early termination due to death, apart from reasonable charges for excessive wear or mileage as outlined in the lease agreement.

Contention

While the bill appears largely supportive towards families during a difficult time, there could be concerns from vehicle dealers and lessors regarding potential loss of revenue from lease buyouts and continued leases. Ensuring enforcement could also raise questions, as dealerships would be expected to adhere to the new requirements while still managing their business operations effectively. There might be discussions related to a balance between consumer protection and the economic implications for vehicle leasing entities.