ACT NO. 143
Motor vehicles; installment contracts
This act authorizes the financing of the purchase of a motor vehicle to include the amount still owed on a vehicle traded-in as part of the purchase. The act requires a person in the business of selling motor vehicles to retail buyers in retail installment transactions to disclose to the buyer the amount the seller will pay to pay off the buyer's existing loan or lease on a trade-in. This disclosure does not make the buyer a licensed lender, so long as any installment (financing) contract is purchased, assigned, or otherwise acquired by a licensed sales finance company. The seller is also required to provide written disclosure, before consummation of a retail installment contract, of the allowance for trade-in, the amount owed on the trade-in or lease, the cash price, the amount financed, and the amount financed as a percentage of the cash price. Disclosure forms will be prescribed by regulation, and must be signed by the consumer. Licensed dealers must keep for six years records of the cash price for vehicles sold to consumers.
Effective Date: July 1, 2006
The Vermont General Assembly
115 State Street