Requires motor vehicle dealers to disclose price markups to the purchasers of motor vehicles; provides failure to so disclose shall be grounds for revocation of the dealer's registration and imposes civil liability to purchasers for damages; authorizes the financial frauds and consumer protection unit of the department of financial services to study problematic practices in the price markups of motor vehicle dealers.
S T A T E O F N E W Y O R K
________________________________________________________________________
5225
2025-2026 Regular Sessions
I N A S S E M B L Y
February 12, 2025
___________
Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
tee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to requiring
retail motor vehicle dealers to disclose to purchasers any markups in
the cost of a motor vehicle as the result of financing the cost there-
of; and to amend the financial services law, in relation to authoriz-
ing the financial frauds and consumer protection unit to study motor
vehicle dealer price markups
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 415 of the vehicle and traffic law is amended by
adding a new subdivision 3-b to read as follows:
3-B. RETAIL DEALER FINANCING MARKUP. A. EVERY RETAIL DEALER SHALL
DISCLOSE TO EACH PURCHASER OF A MOTOR VEHICLE, AT THE TIME OF SALE, ANY
MARKUPS IN THE COST OF SUCH MOTOR VEHICLE RELATED TO THE ENTRY INTO A
RETAIL INSTALLMENT CONTRACT, LOAN AGREEMENT OR OTHER FINANCING AGREEMENT
FOR THE VEHICLE PURSUANT TO ARTICLE NINE OF THE PERSONAL PROPERTY LAW.
THE FAILURE OF ANY RETAIL DEALER TO COMPLY WITH THE PROVISIONS OF THIS
PARAGRAPH SHALL BE GROUNDS FOR THE DEPARTMENT TO SUSPEND OR REVOKE THE
REGISTRATION ISSUED TO SUCH DEALER PURSUANT TO THIS SECTION.
B. UPON VIOLATION OF THE PROVISIONS OF PARAGRAPH A OF THIS SUBDIVI-
SION, AN AGGRIEVED PURCHASER SHALL BE ENTITLED TO COMPENSATORY DAMAGES
EQUAL TO THE FINANCING MARKUP, AND REASONABLE ATTORNEY'S FEES.
§ 2. Section 404 of the financial services law is amended by adding a
new subsection (d) to read as follows:
(D)(1) THE FINANCIAL FRAUDS AND CONSUMER PROTECTION UNIT IS AUTHORIZED
TO CONDUCT A STUDY OF THE PATTERNS AND PRACTICES OF MOTOR VEHICLE PRICE
MARKUPS BY MOTOR VEHICLE DEALERS TO IDENTIFY PROBLEMATIC PRACTICES
INCLUDING, BUT NOT LIMITED TO, RACE DISCRIMINATION, AND MAKE RECOMMENDA-
TIONS FOR THE ELIMINATION OF SUCH PROBLEMATIC PRACTICES.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04637-01-5
A. 5225 2
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