Families could end New Jersey car leases after a lessee dies

Dealers and leasing companies would have to allow early termination after a lessee dies and could not charge an early termination fee. It would cover only a noncommercial vehicle leased in New Jersey and registered there when the lessee died. It would not cover a surviving co-lessee who signed the lease. A spouse, family member, guardian, or estate representative would have to provide satisfactory proof of death within 60 days and return the vehicle. A reasonable charge for excess wear, use, or mileage would remain allowed if the lease lists it. This rule would take effect upon enactment and apply to leases signed on or after that date.

Dealers and leasing companies would have to give written notice of the death-related early termination option in a lease contract or financing agreement. The notice would apply to contracts and financing agreements for leasing motor vehicles. A violation would carry a $500 civil penalty. The notice requirement and its penalty would take effect on the first day of the second month after enactment.