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Bill > A1140

NJ A1140

NJ A1140
Allows termination of motor vehicle lease in event of death; prohibits imposition of fee for early termination.

summary

Introduced
01/13/2026
In Committee
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 renter, or "lessee," dies, provided the vehicle was leased and registered in the state. Crucially, dealers or those who lease vehicles ("lessors") are prohibited from charging any fees for this early termination due to death, though they can still charge reasonable fees for excessive wear, use, or mileage if it's already stated in the lease agreement. The bill also prevents leases from forcing surviving family members, guardians, or estate representatives to buy out the remaining lease, purchase the vehicle, or continue leasing it after the original lessee's death. To use these provisions, the surviving party must provide proof of death, like a death certificate, within 60 days. This protection does not extend to a co-lessee who signed the lease agreement with the deceased. Furthermore, dealers and lessors must clearly inform potential lessees in their contracts or financing agreements that early termination is possible in the event of death, and failure to do so will result in a $500 penalty.

Committee Categories

Business and Industry

Sponsors (5)

Last Action

Introduced, Referred to Assembly Consumer Affairs Committee (on 01/13/2026)
(3 Companion Bills)

bill text

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/A1140
BillText https://pub.njleg.gov/Bills/2026/A1500/1140_I1.HTM
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