1998 Regulation M Leasing Disclosures On January 1, 1998, the new Regulation M went into effect which made a number of significant changes to vehicle leasing disclosures and advertising. The primary new features of Regulation M are: |
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A four cell "Lease Box" with the four primary cost disclosures that looks like the disclosures on a retail or loan installment contract |  Click the image above for an enlarged view and specific detail. |
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A two column disclosure of the "amount due at lease signing" and the source of those funds | |
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A ten line worksheet-like disclosure of the calculation of the monthly payment including disclosure of the full capitalized cost, disclosure of the value of the vehicle and a description of each of the disclosures | |
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Additional disclosures regarding early termination, excessive wear and use, and the lessee's purchase option | |
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Allowance for use of an 800 number in television lease advertising to replace some disclosure requirements |
| As a whole, the new Regulation M is an excellent balance of "all the information the consumer needs to know" without so much information overload that the consumer becomes lost in the details. | ||
| Summary In sum, with the new Regulation M, it will be easier than ever before for consumers to understand leasing terms, analyze lease offers and do comparison shopping. The ACVL is proud of its efforts to create a comprehensive and effective rule. We are now committed to educating consumers to help assure that these new disclosures are fully understood. In partnership with the Federal Reserve Board, we will keep working to help all consumers understand the benefits and responsibilities of vehicle leasing.
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