Prohibits disclosure terms "down payment", "money down", or any similar language to describe lump sum payments in order to reduce monthly lease payments. Provides that lump sum payments are non-refundable in the event of a total loss of the vehicle.

Rhode Island Bill Summary: Vehicle Lease Payment Disclosures

This bill targets how car dealerships and leasing companies describe certain upfront payments when a customer leases a vehicle. Specifically, it would ban the use of terms like "down payment" or "money down" to describe a lump sum payment made at the start of a lease to lower the monthly payments. The concern is that these familiar terms may mislead consumers into thinking a lease works the same way as buying a car, when in fact the financial rules are quite different.

The bill also addresses what happens if a leased vehicle is totaled — meaning it is destroyed in an accident or stolen and declared a total loss. Under this bill, any lump sum payment the customer made upfront would not be refunded in that situation. This makes explicit that consumers could lose that money if the car is totaled, which is an important financial risk people should understand before signing a lease agreement.

Anyone who leases a vehicle in Rhode Island would be affected by this bill. It is primarily aimed at protecting consumers from potentially confusing or misleading language during the lease signing process, ensuring they have a clearer picture of what their money is actually paying for. Car dealerships and leasing companies would need to adjust how they describe these payments in their disclosures and contracts.

As of now, the bill has been referred to the House Corporations Committee and is scheduled for a hearing in April 2026. The committee has recommended it be held for further study, meaning it has not yet moved forward in the legislative process.