429.203 Requirements of a consumer lease.
429.204 Gap amount; notice; waiver.
429.205 Security interest.
429.206 Determination of realized value upon early termination.
429.207 Restrictions on early termination obligation.
429.208 Assessment of excess wear and damage.
429.209 Renegotiations and extensions.
SUBCHAPTER III
PENALTIES AND REMEDIES
429.301 Penalties and remedies.
GENERAL PROVISIONS
429.101
429.101
Title. This chapter may be cited as the Wisconsin motor vehicle consumer lease act.
429.101 History
History: 1995 a. 329.
429.102(1)(1) To the extent that
s. 218.01 and
chs. 411 and
421 to
427 are inconsistent with this chapter, the provisions of this chapter shall apply.
429.102(2)
(2) Unless superseded by the particular provisions of this chapter, parties to a motor vehicle consumer lease have all of the obligations, duties, rights and remedies provided in
s. 218.01 and
chs. 411 and
421 to
427 that apply to the transaction.
429.102 History
History: 1995 a. 329.
429.103
429.103
Construction against implied repeal. This chapter being a general act intended as a unified coverage of its subject matter, no part of this chapter shall be construed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
429.103 History
History: 1995 a. 329.
429.104
429.104
Definitions. In this chapter:
429.104(1)
(1) "Adjusted capitalized cost" means the amount computed by subtracting from capitalized cost any capitalized cost reduction, for the purpose of determining the base lease payment.
429.104(2)
(2) "Average periodic depreciation" means the adjusted capitalized cost, after first subtracting the residual value, divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.
429.104(3)
(3) "Average periodic lease charge" means the lease charge for the scheduled term of the consumer lease divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.
429.104(3m)
(3m) "Balance subject to a lease charge" means:
429.104(3m)(a)
(a) In the case of a lease other than a single-payment lease, the amount calculated by subtracting from the adjusted capitalized cost the sum of the first base lease payment and all depreciation amounts accrued during any preceding payment periods.
429.104(3m)(b)
(b) In the case of a single-payment lease, the amount calculated by subtracting the total lease charge from the sum of the residual value and all lease charges accrued during any preceding computational periods.
429.104(4)
(4) "Base lease payment" means an amount determined as follows:
429.104(4)(a)
(a) With respect to a single-payment lease, the product of the number of months in the scheduled term of the lease multiplied by the sum of the average periodic lease charge and the average periodic depreciation.
429.104(4)(b)
(b) With respect to a lease other than a single-payment lease, the sum of the average periodic lease charge and the average periodic depreciation.
429.104(5)
(5) "Capitalized cost" means the sum of all amounts capitalized in the consumer lease that, after subtracting the capitalized cost reduction, amortizes to the residual value by the depreciation portion of the periodic lease payments over the scheduled term of the lease or, for a single-payment lease, the single payment. These amounts may include taxes; fees for registration, license, acquisition, administration and assignment; other fees; charges for insurance, service contracts and extended warranties; and charges for a waiver of the contractual obligation to pay the gap amount, for accessories and their installation, for other services and benefits incidental to the consumer lease, and for delivering, servicing, repairing or improving the vehicle. With respect to a vehicle or other property traded in connection with a consumer lease, the term may include the outstanding unpaid balance of the amount financed under a consumer loan, as defined in
s. 421.301 (12), or a retail instalment contract, as defined in
s. 218.01 (1) (t), or the unpaid balance of any early termination costs under a lease or other obligation of the lessee. The term does not include any lease charge.
429.104(6)
(6) "Capitalized cost reduction" means the sum, at the time of inception of the consumer lease, of any payments made by cash, check, rebates or the like that constitute a downpayment made by the lessee and the net amount credited by the lessor for any trade-in. The term does not include any base lease payments due at the inception of the consumer lease.
429.104(7)
(7) "Conspicuous" means that the term or clause is so written as to be distinguished from other terms or clauses by type size or in some other manner. The term includes any writing in at least 10-point boldface type.
429.104(9)
(9) "Consumer lease" or "lease" means a lease entered into in this state that transfers the right of possession and use by a natural person of a motor vehicle primarily for a personal, family, household or agricultural purpose, for a period of time exceeding 4 months, if the total lease obligation, excluding any option to purchase or otherwise become owner of the motor vehicle at the expiration of the consumer lease, does not exceed $25,000. The term does not include a credit sale, as defined under
12 CFR 226.2 (a) (16).
429.104(10)
(10) "Early termination" means termination of a consumer lease before the termination date set forth in the consumer lease.
429.104(11)
(11) "Federal consumer leasing act" means the federal consumer leasing act, as amended,
15 USC 1667-1667e, and regulations issued under that act.
429.104(12)
(12) "Gap amount" means the difference between the amount to be paid by the lessee under the consumer lease in the event of total loss or destruction of the leased vehicle prior to expiration of the lease term by theft, physical damage, or other occurrence specified in the lease, and the actual cash value or portion thereof received by the lessor from insurance proceeds or from any other person on account of the total loss or destruction of the motor vehicle. The term does not include any deductible amount under any applicable insurance policy maintained by the lessee, any past-due payments owed by the lessee at the time of receipt by the lessor of the actual cash value or portion thereof from insurance proceeds or from any other person, or any other amount due under the lease resulting from default by the lessee.
429.104(13)
(13) "Gap protection" means any of the following:
429.104(13)(a)
(a) A provision in a consumer lease under which the lessor agrees, for a charge, to waive the gap amount.
429.104(13)(b)
(b) Insurance coverage that provides that another person is liable for the gap amount.
429.104(14)
(14) "Group credit insurance" means group credit life insurance, group credit accident insurance, group credit accident and health insurance, group disability insurance or group credit unemployment insurance.
429.104(15)
(15) "Holder" means, with respect to a consumer lease, the lessor and, upon assignment of the lease, the assignee for the period of assignment. The term does not include a pledgee of a consumer lease or the owner or beneficiary of an interest in a trust that owns consumer leases.
429.104(16)
(16) "Lease charge" means the sum of all charges payable by the lessee for the privilege of making the scheduled lease payments under a consumer lease. The term does not include capitalized cost.
429.104(17)
(17) "Lessee" means a natural person who leases a motor vehicle from a lessor under a consumer lease.
429.104(18)
(18) "Lessor" means a person regularly engaged in the business of leasing or selling vehicles who leases a motor vehicle to a lessee under a consumer lease.
429.104(20)
(20) "Periodic" means weekly, monthly, quarterly or any other period of time specified in a consumer lease.
429.104(21)
(21) "Prospective lessee" means a natural person who enters into a prelease agreement under
s. 218.01 (6x) with a prospective lessor, or who otherwise intends to become a lessee.
429.104(21m)
(21m) "Prospective lessor" means a person regularly engaged in the business of leasing or selling vehicles who enters into a prelease agreement under
s. 218.01 (6x) with a prospective lessee, or who otherwise intends to become a lessor.
429.104(22)
(22) "Realized value" means, with respect to any motor vehicle leased under a consumer lease that is terminated before the expiration date, the value determined under
s. 429.206.
429.104(23)
(23) "Renegotiation" means the satisfaction and replacement of an existing consumer lease by a new consumer lease between the same parties, including an assignee of the lessor. The term does not include a deferral or extension of any periodic lease payments or portions thereof not exceeding 6 months in the aggregate, a satisfaction and replacement of a consumer lease involving a court proceeding or the settlement of a dispute, or any other action that does not constitute a renegotiation under the federal consumer leasing act.
429.104(24)
(24) "Residual value" means the estimated value of the leased vehicle at the expiration of the lease term that is used in the consumer lease to determine the depreciation portion of the base lease payment.
429.104(25)
(25) "Single-payment lease" means a consumer lease that requires only one payment, to be paid at the time of consummation of the lease.
429.104(26)
(26) "Total lease obligation" means the sum of all of the following:
429.104 History
History: 1995 a. 329.
DISCLOSURES; LIMITATIONS ON AGREEMENTS AND PRACTICES
429.201
429.201
Prelease availability of consumer lease form. A lessor shall, upon request of a prospective lessee, make readily available a blank sample of its current consumer lease form for examination by the prospective lessee before execution of the consumer lease.
429.201 History
History: 1995 a. 329.
429.202
429.202
Advance payment or trade-in; refund or return. 429.202(1)(1) If a prospective lessee has made an advance payment or surrendered possession of a vehicle to a prospective lessor as a trade-in pending the execution of a consumer lease, the prospective lessee shall have the right, if the application for the consumer lease is not approved, to receive a prompt refund of the advance payment and, if applicable, to have the trade-in vehicle promptly returned. If a prospective lessor takes possession of a trade-in vehicle under this subsection, the prospective lessor may not sell, offer for sale, lease, transfer or otherwise dispose of the vehicle in any manner until execution of the consumer lease or, except for return of the vehicle to the prospective lessee, disapproval of the consumer lease application.
429.202(2)
(2) This section does not apply to the sale of a vehicle by a prospective lessee to a prospective lessor under a separate contract of sale if the contract of sale is executed prior to execution of the consumer lease between the parties, gives the date of sale and is signed by both parties. Any contract of sale under this subsection shall provide for all of the following:
429.202(2)(a)
(a) That the contract price establishes the value of the vehicle to be credited against the amount due from the lessee at the consummation of the lease or, if the parties fail to execute a consumer lease, the amount due the prospective lessee for the vehicle.
429.202(2)(b)
(b) That the prospective lessee agrees to leave the contract price on deposit with the prospective lessor pending the execution of a consumer lease between the parties with respect to a motor vehicle to be ordered from a manufacturer, including a motor vehicle not yet in production as of the date of sale.
429.202(2)(c)
(c) That the prospective lessee shall be entitled to payment of the contract price from the prospective lessor no later than 75 days after the date of sale, unless the parties have executed a consumer lease or the prospective lessee has already received such payment.
429.202 History
History: 1995 a. 329.
429.203
429.203
Requirements of a consumer lease. 429.203(1)
(1) A consumer lease shall be in writing and signed by the lessor and the lessee.
429.203(2)
(2) Except as otherwise provided in this subsection, the printed portion of a consumer lease, other than instructions for its completion, shall be in at least 8-point type. The consumer lease shall contain all of the following printed in a conspicuous manner:
429.203(2)(a)
(a) At the top of the consumer lease, the words "MOTOR VEHICLE LEASE AGREEMENT" in at least 10-point type.
429.203(2)(b)1.1. Except as provided in
subd. 2., if no liability insurance for bodily injury or property damage is provided for under the consumer lease, a notice in substantially the following language in bold-faced capital letters of not less than 10-point type: "NO LIABILITY INSURANCE FOR BODILY INJURY OR PROPERTY DAMAGE IS INCLUDED IN THIS LEASE."
429.203(2)(b)2.
2. The notice required under
subd. 1. may be provided on a separate document delivered to the prospective lessee not later than the time of execution of the consumer lease.
429.203(2m)
(2m) Every writing evidencing the customer's obligation to pay under a motor vehicle consumer lease shall contain immediately above or adjacent to the place for the signature of the customer, a conspicuous, printed or typewritten notice in substantially the following language:
NOTICE TO LESSEE
(a) THIS IS A MOTOR VEHICLE LEASE AGREEMENT. YOU HAVE NO OWNERSHIP RIGHTS IN THE MOTOR VEHICLE UNLESS THIS LEASE CONTAINS A PURCHASE OPTION AND YOU EXERCISE YOUR OPTION TO PURCHASE THE MOTOR VEHICLE.
(b) DO NOT SIGN THIS LEASE BEFORE YOU READ IT, INCLUDING ANY WRITING ON THE REVERSE SIDE.
(c) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
(d) EARLY TERMINATION OF THIS LEASE MAY REQUIRE YOU TO PAY A SUBSTANTIAL AMOUNT.
(e) YOU ARE ENTITLED TO A COMPLETED COPY OF THIS LEASE WHEN YOU SIGN IT.
429.203(3)
(3) The consumer lease shall contain all disclosures required by the federal consumer leasing act and any of the following disclosures that are not disclosed in the same or substantially similar disclosures under the federal consumer leasing act:
429.203(3)(a)
(a) The capitalized cost, using the term "capitalized cost", and an explanation of the term in substantially the following language: "The capitalized cost is the agreed-upon amount determined at the inception of the consumer lease for all items and services included in the lease other than the charges you pay for the privilege of making the scheduled lease payments."
429.203(3)(b)
(b) Any capitalized cost reduction, using the term "capitalized cost reduction", and an explanation of the term in substantially the following language: "The capitalized cost reduction is any cash, check, rebate or the like and, if applicable, net trade-in allowance that reduces the capitalized cost."
429.203(3)(c)
(c) The adjusted capitalized cost, using the term "adjusted capitalized cost", and an explanation of the term, as applicable, in substantially the following language: "The adjusted capitalized cost is the agreed-upon amount that serves as the basis for determining the base lease payment. If you are not in default on the consumer lease, this amount (plus any applicable early termination charges) determines your maximum early termination obligation."
429.203(3)(d)
(d) The residual value of the leased vehicle, using the term "residual value", and an explanation of the term in substantially the following language: "The residual value is the estimated value of the leased vehicle at the end of the lease term that is used in determining the depreciation portion of the base lease payment. Your purchase option price, if any, may be a different amount."
