Don’t Be Taken for a Ride - Guide to Auto Leasing - Consumer Protection Leasing Act Basics

Sep 16, 2026

Guide to Auto Leasing explains how auto leasing works for consumers and how New Jersey law helps protect lessees. It highlights key rights under the Consumer Protection Leasing Act and the Consumer Fraud Act, including access to accurate material lease terms and freedom from fraudulent practices. The booklet outlines why people lease, what a lease means, how to review contracts carefully, and how the one-day cooling-off period affects decision-making and negotiation.

LanguageEnglish

CategoryLetters

FormatPDF

Pages32

Reading Time11 min

AccessFree to download

Introduction

Why do people lease?

What is a lease?

Contract review and cooling-off period

Cooling-off waiver requirements

Special financing and dealer negotiation

Auto Leasing Guide Glossary

Insurance needs

Buy-Out

What to expect at the end of the lease

In Conclusion

Don’t Be Taken for a Ride Guide to Auto Leasing Introduction ................................ 1 Ifyou are considering leasing a vehicle,you should know that .... 2 Why do people lease? ......................... 2 What is a lease? ............................. 2 How often do you purchase a new vehicle? .......... 3 What can you afford? ......................... 4 Do you put a lot of wear and tear on a car? ......... 4 Understand the effect of trade-ins and down payments .... 5 Be on the lookout for special factory-subsidized lease deals ... 5 Balloon-Note Financing ....................... 5-8 O.K. , so you think leasing is a good idea for you? .... 8 Know the language of the industry ................ 8 Auto Leasing Guide Glossary ............ 9-18 Let’s review the basics of buying a car ............. 18 Now, let’s look at leasing ...................... 19 Learn how to calculate the interest rate or “money factor” .... 20 What are your insurance needs? ................. 21 The Buy-Out ............................... 21 Advertising requirements for lessors .............. 21 What to expect at the end of the lease ............ 23 In Conclusion .............................. 24 In recent years, the number of drivers who lease rather than buy their cars has increased tremendously. A large percentage of New Jersey residents now lease a vehicle. Unfortunately, as the number of leases has increased, so has the number of complaints of consumer fraud and deception. New Jersey’s Consumer Protection Leasing Act (“C.P.L.A.”) , N.J.S.A. 56: 12-60 et seq., established what are perhaps the strongest motor vehicle leasing standards in the nation. The law ensures greater protection for New Jersey consumers by requiring lessors to disclose detailed information about crucial terms of their leases. On October 1, 2005, the New Jersey Streamlined Sales and Use Tax Agreement became effective. This legislation made significant changes to the New Jersey Sales and Tax Use Law and changed the formula for calculating the tax on auto leases. Additionally, effective January 1, 2018, the New Jersey Sales and Use Tax Rate is 6.625% . The C. P.L.A. requires the Division of Consumer Affairs (“Consumer Affairs”) to educate consumers about leases. As part of its statutory obligations, Consumer Affairs has prepared this booklet. With the help of this booklet, the “Don’t Be Taken For a Ride Guide to Auto Leasing,” you can determine whether leasing or buying is right for you and, if you do lease, how to ensure that you will negotiate the best possible deal. ~~ ~~ 1 ~~ ~~ Ifyou are considering leasing a vehicle,you should know that... The most important right you have as a lessee is to be free from fraudulent practices. However, you should also realize that you have a right to receive important information that is accurate, including the material terms and conditions that will be a part of your lease, without having to endure undue sales pressure and confusing or mysterious language. The C.P.L.A. and the Consumer Fraud Act (“C.F.A.”), N.J.S.A. 56:8-1 et seq., incorporate these rights for New Jersey consumers into law. . Why do people lease? The lure of a lease is its monthly price. Consumers often find that they can lease cars at lower monthly payments than they would if they were purchasing. Advertisements of “no down payments,”“low monthly payments” and “more car for your dollar,” are naturally very appealing. According to Consumer Reports, the average price of a new car is approximately $47,000. As a result, some consumers are leasing asan alternative to buying new vehicles. Before you make up your mind and lease that fancy sports car or sport utility vehicle, ask yourself two basic questions: 1) “Will it be cheaper in the long run to buy or lease this vehicle?” and 2) “If I lease, how do I get the best deal?” What is a lease? A lease is basically a long-term rental agreement – more than 120 d

FAQs

What are the most important rights of a lessee under New Jersey law?

The booklet emphasizes the right to be protected from fraudulent practices and the right to receive accurate, complete information about material lease terms without undue sales pressure or confusing language.

What is a lease, according to the guide?

A lease is described as a long-term rental agreement—more than 120 days—letting the driver use a vehicle owned by someone else, with the requirement to return the vehicle when the lease ends unless a buy option exists.

What is the one-day cooling-off period and why does it matter?

Under the Consumer Protection Leasing Act, consumers receive a one-day cooling-off period to review the lease contract before it is finalized. Taking this time helps avoid costly decisions and allows the consumer to confirm the numbers and terms.

Sep 16, 2026

Upload by Bill Black