New Jersey Car Trade-in Law To Protect Car Buyers From Bad Car Dealers

This is good news for all New Jersey car owners who intend on trading-in their vehicle. In recent years the authorities in the state of New Jersey have gotten numerous complains about car dealers who failed to pay of loans on trade-in vehicles.

NJ legislators have introduce a bill forcing car dealers to pay loans on trade-in car and trucks in a timely manner or risk paying a fine. When dealership refuse to pay loans on trade in vehicles the burden of paying the loan is rested on the person who traded in the vehicle, irrespective of the fact that they no longer possess the car.

The new bill sent to the Transportation Committee will soon receive a hearing. If this bill becomes law, car dealerships will be required to pay the remaining loan on the trade-in within a period of 15 days of the transaction.

The bill will also required that the bank or the lending agency (secured parties) who issued the loan release the title within 15 days of receipt of payment from the dealer. Those who do not comply with the requirement will be fine up to $500 dollars for the first offense and up to $1,000 for any subsequent violation.

There are incidents where car dealers refuse to pay the loan on trade-ins and left car owners in financial difficulty for a trade-in they no longer possess. This is a legislation in the right direction, to keep New Jersey car dealers honest and car buyers protected.

Some of the sponsors of the bill include Republican representatives Scott Rudder, Dawn Marie from the Medford area and Democrat Paul Mariarty of Turnesville