New York Bill Addresses Auto Leases, Service Contracts

January 16, 2019

The New York Assembly is considering a bill that aims to “to amend the insurance law, in relation to expanding the availability of meaningful service contracts to protect New Yorkers leasing automobiles for their  personal  use from unanticipated “lease-end” charges related to excess use or wear and tear of the leased vehicle.”

The bill notes, “In conjunction with a motor vehicle leased for personal use, such term shall also mean a contract to perform the repair, replacement or maintenance of property, or to provide indemnification for repair, replacement or maintenance, due to excess wear and use or damage for items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts that result in a lease-end charge not otherwise covered by a service agreement or warranty, provided any such payment shall not exceed the purchase price of the vehicle.”

The bill, A268, was introduced on January 9 and referred to the Assembly Insurance Committee.

Click here for the full text of A268.

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