Regulates pay-off of trade-in vehicles and certain vehicle title releases.
The legislation is poised to necessitate changes in how motor vehicle dealers manage trade-in transactions. By establishing a clear timeline and accountability for payment to secured parties, the bill seeks to enhance transparency and protect consumers from potential financial liabilities tied to their trade-in vehicles. In addition, it underscores the importance of timely action by dealers and enforces penalties for non-compliance, which may ultimately deter improper handling of trade-ins in the future.
Assembly Bill A2417 focuses on the regulation of trade-in vehicles in New Jersey, particularly regarding the timely payment of outstanding loans on trade-ins by motor vehicle dealers. The bill mandates that once a dealer accepts a trade-in, they must remit payment of the remaining loan balance to the secured party within 15 days. Moreover, the dealer is required to provide proof of payment upon the customer's request. This provision aims to streamline the process for consumers when trading in their vehicles, ensuring that their previous loans are settled promptly, thus preventing any financial complications.
A noteworthy aspect of A2417 includes civil penalties that may be imposed on dealers who fail to adhere to the new requirements. Penalties are set at up to $1,000 for first offenses and $2,000 for subsequent violations. This measure aims to incentivize compliance among dealers, but it could also lead to concerns about the financial burden on smaller operators who may struggle to keep up with the new stipulations. Furthermore, the bill includes provisions that invalidate levies on vehicles unless creditors take actual possession within 30 days, which may influence the practices of secured parties in managing defaults and repossessions.