Lease Disposition Fees illegal in New York from 1/1/25

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Thanks, Kathy: Money in Your Pockets: Governor Hochul Signs Five New Laws to Protect Consumers and Save Them Money | Governor Kathy Hochul

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ā€œThe new law prohibiting unnecessary fees for leased cars is a major step in addressing the affordability crisis faced by hardworking New Yorkers.ā€

ā€œMajor stepā€ as if this is whatā€™s saving the working class family, itā€™s amazing how disconnected these people are.

How about you lower taxes lol

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Or not charge low income workers extra money they donā€™t have who also have to commute from south Jersey into Manhattan?

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Better than nothing, no? Like removing PPT on leased cars and/or sales tax on the full price in VA. Thanks for nothing, Glen lol

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Is this for new leases or any lease expiring after 1/1/25?

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As if they arenā€™t going to just embed the costs somewhere else in the transaction.

Good lord, what a waste of time and effort.

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The answer is in the bill text:

https://legislation.nysenate.gov/pdf/bills/2023/S4778

  1. This act shall take effect on the first of January next succeed-ing the date on which it shall have become a law and shall apply to leases executed on or after such date.
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But who will pay for the Floyd Bennett Field migrantsā€™ prepaid visa spending money cards?

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Maybe Igor can pay? Heā€™s got a lot of extra money now and plenty of time in the long offseason.

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orā€¦hear me outā€¦no tax at all

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What will be interesting to me is how the finance companies handle it. I Imagine the finance companies need to get rid of disposition fees at least in tristate area. OEMs donā€™t want someone in Greenwich driving to White Plains to ground their BMW. Or do we see updated lease contracts where NY leases can only be grounded in NY State and out of state leases cannot be grounded in NY.

As for the merits, eh. It seems stupid but forcing the OEMs to put the full lease cost up front doesnā€™t get my blood boiling. Disposition fees were, for the most part, a way to bury a cost at end of the lease while keeping monthly payments artificially low.

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Effective January 1st, New York Senate Bill S.4778/A.7167 prohibits the imposition of ā€˜Turn-inā€™ fees (disposition) at the expiration of a term on motor vehicle leases contracted after January 1st, 2025. For all leases starting at a New York dealership or signed with a lessee/co-lessee residing in New York, the Turn-in fee disclosed in Section 4 of the lease agreement must read $0.00.

Please contact your DMS provider as programming is required to ensure compliance with the new law.

For any questions concerning this announcement, please refer to Senate Bil S.4778/A.7167 or contact your Dealer Relations Manager.

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OEMā€™s tomorrow:

No problem, weā€™ll just list it in Section 5 instead

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Agreed. Iā€™m sure the OEMs will make the money back in other ways but dispo fees suck

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Thereā€™s costs involved with grounding cars. Now they will prob be less lenient with wear and tear etc. wonder how much they spent making a meaningless law? Let the market decide if the fee is erroneous, can always buy instead.

People in Florida vote with their wallet everyday to avoid the 999-1199 doc fee.

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This will aplly to NY leases and they can be grounded anywhere. Me thinksā€¦
Dispo fees charged by the bank.

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I canā€™t imagine it will be complicated. Leases originated with an NY resident lessee will show $0 disp and everything else remains the same re: grounding, etc.

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