Pub. 15 2016-2017 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 17 new jersey auto retailer W W W . N J C A R . O R G Mandatory Notices in Automotive Transactions Used Car Buyers Guide Must be posted, along with asking price, on all USED vehicles ( including “demos” ) that are displayed for sale. FTC Privacy Notice Must be provided in all FINANCE and LEASE transactions (New or Used), at the time of or prior to taking customer information. Credit Score Disclosure Notice Either a Credit Score Disclosure Notice or a Risk Based Pricing Notice must be provided to all approved FINANCE (not lease) applicants. Does not have to be provided to customers whose application for financing is denied, they will receive an Adverse Action Notice from the party which made the credit determination, either the dealership or the lender. Lease Waiver Form Must be provided to customer in all LEASE transactions when customer is asked to sign lease agreement without being given 24 hours to review the agreement (for most dealerships, this means ALL LEASES ). New Car Lemon Law Notice Must be provided in all transactions involving NEW vehicles, whether a PURCHASE (financed or cash) or LEASE transaction. NJ Used Car Lemon Law Notice Must be provided in all transactions involving USED vehicles, whether a PURCHASE (financed or cash) or LEASE transaction. NJ Used Car Lemon Law Warranty Must be provided in all transactions involving USED vehicles covered by the Used Car Lemon Law Warranty. Covered vehicles include all vehicles with less than 100,000 miles on odometer, unless : 1 ) Vehicle is more than 7 model years old; 2 ) Purchased off-lease; 3 ) Sold for less than $3,000; 4 ) Warranty has been waived; 5 ) Salvage vehicle. As-Is Disclosure Form Must be provided in all PURCHASE (whether financed or cash) and LEASE transactions involving USED vehicles that are sold “ AS-IS ” (including situations in which customer has waived the Used Car Lemon Law Warranty). Used Car Lemon Law Waiver Form Must be provided in all PURCHASE (whether financed or cash) and LEASE transactions involving USED vehicles whenever the New Jersey Used Car Lemon Law Warranty has been WAIVED (Used car lemon law warranty can only be waived for vehicles with more than 60,000 miles on odometer). confusedormistaken, even if youdidn’t confuse themormislead them on purpose, you could be liable if you take advantage of their mistake. When it comes to used vehicles, the CFA sets forth a list of manda- tory disclosures. The Used Car Lemon Law says it is a violation of the CFA to: • Fail to disclose any material defects in the mechanical condition of a vehicle which is known to the dealer. • Represent that a vehicle is free fromany defects, unless the dealer has a reasonable basis tomake this statement (such as amechanical inspection). This provision is applicable to“certified”usedvehicles. • Fail to disclose any existing warranty covering the vehicle when that warranty is transferable. • Misrepresenting the physical condition of a vehicle, the terms of any warranty, or failing to disclose that a vehicle is sold without a warranty, or failing to explain, in writing, the meaning of the term “as-is” if a vehicle is sold as-is. Mandatory Notices A dealership is required to provide motor vehicle purchasers with a number of mandatory “notices,” under several different State and federal laws. The legislature and Congress want you to tell your cus- tomers about their rights under all of these laws. The problem is that consumers are now bombarded with so many complicated “notices” that it only serves to increase confusion. Nevertheless, compliance is mandatory, and failure to provide any of these notices is penalized by yet another New Jersey statute—which is forming the basis of more andmore lawsuits lately—theTruth inConsumerContract,Warranty and Notice Act (TCCWNA). TCCWNA has become a favorite tool of class action attorneys be- cause, in addition to attorney’s fees and treble damages, it provides for an automatic penalty of $100 for each and every time a dealership fails to provide a mandatory notice, or provides a defective notice, or even includes in any consumer document or contract any provision which violates a consumer “right” under any law. It does not matter if the customer was harmed or if it was an innocent, harmless mistake. This gives the lemon law and class action lawyers yet another means to “bootstrap” minor, technical, and harmless violations of obscure regulations into consumer fraud class actions. The following chart attempts tomake a complicated situationas simple as possible, by showingwhen eachof nine differentmandatory notices or forms must be provided to a vehicle buyer/lessee: COMPLIANCE PITFALLS  continued on page 18