What Forms Does a Dealer Need to Supply in a Leased Vehicle Sale?
Full Question:
Answer:
The answer will vary by the facts in each case, such as whether the car has been in an accident previously or not. Typically, a dealer will have the lessee sign a disclosure form, informing the lessee of the device's presence and describing the device and its operation.
For further discussion, please see:
http://autos.aol.com/article/engine-shut-off-systems/
http://www.guiley.com/condocu.htm
http://codes.ohio.gov/orc/1345
Please see the following OH laws::
4517.25 Mileage disclosure statement.
(A) Every dealer shall maintain a mileage disclosure statement from the previous owner of each motor vehicle the dealer sells, purchases, or receives as a trade on another motor vehicle. The mileage disclosure statement shall be in such form and include such information as the motor vehicle dealers board requires by rule.
(B) Whoever violates this section is guilty of a misdemeanor of the fourth degree.
Effective Date: 01-01-2004
4517.26 Written agreement to precede sale.
(A) Every retail and wholesale sale of a motor vehicle shall be preceded by a written instrument or contract that shall contain all of the agreements of the parties and shall be signed by the buyer and the seller. The seller, upon execution of the agreement or contract and before the delivery of the motor vehicle, shall deliver to the buyer a copy of the agreement or contract that shall clearly describe the motor vehicle sold to the buyer, including, where applicable, its vehicle identification number and the mileage appearing on the odometer of the vehicle at the time of sale and whether the mileage is accurate; the sale price of the vehicle, and, if applicable, the amount paid down by the buyer; the amount credited to the buyer for any trade-in, and a description thereof; the amount of any finance charge; the amount charged for any motor vehicle insurance, and a statement of the types of insurance provided by the policy or policies; the amount of any other charge, and a specification of its purpose; the net balance due from the buyer; and the terms of the payment of the net balance.
This section does not apply to a casual sale of a motor vehicle.
(B) Whoever violates this section is guilty of a misdemeanor of the fourth degree.
Effective Date: 01-01-2004
4517.261 Documentary service charge for sale or lease.
A motor vehicle dealer may contract for and receive a documentary service charge for a retail or wholesale sale or lease of a motor vehicle. A documentary service charge shall be specified in writing without itemization of the individual services provided. A documentary service charge shall be not more than the lesser of the following:
(A) The amount allowed in a retail installment sale;
(B) Ten per cent of the amount the buyer or lessee is required to pay pursuant to the contract, excluding tax, title, and registration fees, and any negative equity adjustment.
Effective Date: 2007 HB119 09-29-2007
1351.02 Disclosures required in connection with lease-purchase agreement.
(A) A lessor shall disclose all of the following in a clear and conspicuous manner:
(1) A brief description of the leased property, sufficient to identify the property to the lessee and lessor and a statement as to whether the property is new, used, or previously leased. If a lease is for multiple items of property, a description of each item may be provided in a separate statement incorporated by reference in the lease-purchase agreement or primary disclosure statement.
(2) The total amount of any initial payment, including any advance payment, delivery charge, or any trade-in allowance to be paid by the lessee at or before consummation of the lease-purchase agreement;
(3) The amount and timing of lease payments;
(4) The amount of all other charges, individually itemized, payable by the lessee to the lessor, that are not included in the lease payments;
(5) The party who is liable for loss, damage in excess of normal wear and tear, or destruction of the leased property;
(6) The right of the lessee to reinstate as set forth in section 1351.05 of the Revised Code and the amount or method of determining the amount of the delinquency charges, reinstatement fee, or delivery charge for reinstatement;
(7) The party responsible for maintaining or servicing the leased property and a brief description of the responsibility;
(8) The conditions upon which the lessee or lessor may terminate the lease prior to the expiration of the lease term;
(9) The total of all initial payments, all lease payments, and all other charges necessary to acquire ownership of the leased property;
(10) That the lessee has the option to purchase the leased property during the lease term and at what price, or by what formula or method the purchase price will be determined;
(11) The cash price of the personal property that is the subject of the lease-purchase agreement;
(12) That if any part of a manufacturer’s warranty exists on the leased property when a lessee acquires ownership of the property, the warranty will be transferred to the lessee;
(13) That the lessee is not required to purchase insurance for the property that is the subject of the lease from the lessor or from any insurer owned or controlled by the lessor;
(14) A notice in a prominent place in at least twelve-point type or in legible print with letters at least one-eighth inch in size, in substantially the following form:
“NOTICE: THIS LEASE-PURCHASE AGREEMENT IS REGULATED BY STATE LAW AND MAY BE ENFORCED BY THE ATTORNEY GENERAL OR BY PRIVATE LEGAL ACTION.”
(B) Every lease-purchase agreement shall be in writing. The information required by this section shall be disclosed by the lessor prior to the signing of the lease-purchase agreement by the lessee and shall be disclosed either in the lease-purchase agreement or on a dated, separate piece of paper that identifies the lease-purchase agreement and the parties to it.
(C) The disclosures required by this section shall be printed or typed in at least ten-point boldface type, and numerical amounts and percentages shall be stated in figures. All information required by this section shall be stated in a clear and coherent manner, using words and phrases of common meaning. The information shall be appropriately divided and captioned by its sections.
(D) A lessor may disclose information that is not required by this section if the additional information is not stated, used, or placed in a manner that will contradict, obscure, or distract attention from the required information.
(E) With respect to matters specifically governed by the “Consumer Credit Protection Act,” 1667, 90 Stat. 257, as amended, compliance with such act satisfies the requirements of this section.
1351.07 Advertisements - mandatory information to be supplied.
(A) No advertisement for a lease-purchase agreement shall state that a lease of any specific property is available at specific amounts or on specific terms unless the lessor will lease the property at those amounts or on those terms.
(B) No advertisement shall state that a payment or a lease payment is due upon origination of a lease without disclosing all of the following:
(1) The payment due upon origination of the lease;
(2) The lease payment;
(3) The total number of lease payments necessary to obtain ownership of the property that is the subject of the lease-purchase agreement.
(C) All property displayed or offered under a lease-purchase agreement shall have stamped upon or affixed to the property and clearly and conspicuously indicated in arabic numerals that are readable and understandable by visual inspection, all of the following:
(1) The cash price of the property;
(2) The amount of the lease payment;
(3) The total number of lease payments necessary to acquire ownership of the property that is the subject of the lease-purchase agreement.
(D) With respect to matters specifically governed by the “Consumer Credit Protection Act,” 1667, 90 Stat. 257, as amended, compliance with such act satisfies the requirements of this section.