Requires motor vehicle lease contracts to include provisions related to the accumulation of mileage, specifically the amount a lessee will receive back if such lessee does not accumulate all miles that were allotted for the term of the lease.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7297
SPONSOR: Novakhov
 
TITLE OF BILL:
An act to amend the personal property law, in relation to requiring
motor vehicle lease contracts to include provisions related to the accu-
mulation of mileage
 
PURPOSE:
To require that automobile leasing companies issue a refund to a lessee
in the event that the lessee returns a leased vehicle after having used
fewer miles than were allowed by the original lease agreement.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subdivision 5 of Section 337 of the
Personal Property law, by adding a new subdivision (n) which clarifies
that a vehicle lessee returning a leased vehicle having used fewer that
the allowed miles is to be offered an amount equal to that which the
lessee would have been charged should the lessee have used mileage in
excess of that permitted by the lease.
Section 2 of the bill provides the effective date.
 
JUSTIFICATION:
As a general rule, an automobile lease will allow a lessee to drive the
leased vehicle for a set number of miles. Such a lease agreement will
also usually specify an additional charge per mile to be levied should
the lessee drive the vehicle for more than its allotted miles. This is
not unreasonable, given that the additional miles add additional wear
and tear on the vehicle while also reducing its resale value. By the
same token, however, it is only fair to offer a similar rebate to the
lessee when he or she drives the vehicle for fewer miles than originally
provided for, given the reduced wear and tear on the vehicle and corre-
sponding increase in the value of that vehicle.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.