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Bill > S577
NJ S577
NJ S577Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill allows a motor vehicle lease to be terminated upon the death of the lessee and the return of the vehicle to the dealer or lessor. The bill prohibits a dealer or lessor from imposing or assessing any fee for the early termination of a vehicle lease in the event of a lessee's death. However, the dealer or lessor would be permitted to assess a reasonable fee for a vehicle returned with excess wear, use, or mileage, if specified in the lease agreement. The bill also prohibits a lease from requiring, in the event of a lessee's death, that the decedent's surviving spouse, family member, guardian, or estate administrator or executor: 1) purchase the leased vehicle; 2) buy out the remainder of the lease; or 3) continue to lease the vehicle under the original terms of the lease. A surviving spouse, family member, guardian, or estate administrator or executor would need to provide a death certificate, or other satisfactory proof of the lessee's death, to the dealer or lessor within 60 days after the death of the decedent. The bill provides that it is not to be construed as applying to a surviving co-lessee who executed the motor vehicle lease agreement with the lessee. Further, the bill requires that dealers and lessors provide information about early termination in the event of death in the lease contract or financing agreement. A dealer or lessor in violation of this requirement would be subject to a $500 penalty.
AI Summary
This bill allows for the early termination of a motor vehicle lease if the primary person who signed the lease (the lessee) dies, provided the vehicle was leased and registered in the state. Upon the lessee's death, their surviving spouse, family member, guardian, or estate representative can return the vehicle to the dealer or lessor to end the lease without incurring early termination fees, though reasonable fees for excessive wear, use, or mileage may still apply if stated in the original lease agreement. The bill explicitly prohibits leases from forcing survivors to buy out the vehicle or continue payments after the lessee's death, and requires proof of death within 60 days. This provision does not apply to surviving co-lessees who also signed the lease or to commercial vehicles. Additionally, dealers and lessors must inform consumers in writing about this early termination option in lease contracts, and face a $500 penalty for failing to do so.
Committee Categories
Transportation and Infrastructure
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Transportation Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S577 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/577_I1.HTM |
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