Don't Get Taken for a Ride: Why the Consumer Leasing Act Demands Upfront Disclosure for Lease Buyouts

When it comes to leasing a car, it's important to understand all of the fees involved so you don’t get overcharged. This is where the Consumer Leasing Act (CLA) comes in. The CLA requires that consumers who buy out their leases be told what the fees will be to buy out their leases.

In 1976, the CLA was passed to protect consumers from hidden fees and surprises. A key provision of the CLA is that all fees associated with a lease buyout must be disclosed in writing to the consumer on their lease. This includes any early termination fees, purchase option fees, or other charges that may accompany ending a lease early.

Car dealers may violate the CLA by simply not disclosing the buyout fees at all. This can occur when a dealer is more focused on making a sale than on providing the consumer with all the information they need to make an informed decision. Consumers should be aware of buyout fees associated with car leasing before signing a contract to buyout the lease. If the fees are not disclosed in the lease, then the car dealer may not be legally allowed to charge them.

In sum, the CLA helps protect consumers from hidden fees and surprises when leasing a car. By requiring that all fees associated with buying out a lease be disclosed in writing, the CLA gives consumers the information they need to make an informed decision about whether to buy out their lease.

If you think you were overcharged to buyout your lease, please contact us for a free case evaluation.