6. AUTO LEASE ADVERTISING, SUBSEQUEST AUTO LEASE HOLDERS, AND ADDITIONAL INFORMATION

We have touched on some of the more common issues that arise with auto leases and, in concluding our review of the Vehicle Leasing Act, want to raise some additional but yet important points that can come up in auto leases.

LIABILITY OF SUBSEQUENT ASSIGNEES: An auto lessee can make any claim against any subsequent leaseholder bank/leasing company/assignee they can make against the original lessor. However their liability is limited to what the lessee owes on the lease at the time the assignment is made.

ATTORNEY'S FEES: The Vehicle Leasing Act allows the party that wins the lawsuit to have the other side pay their attorney fees. It does not matter who filed a lawsuit first. This allows many lessees to retain attorneys to sue the bigger better financed lessor.

ADVERTISING: Dealers/Lessors may only advertise auto lease terms that they normally lease vehicles for. If a lessee advertises a specific required auto lease CAPITALIZED COST REDUCTION (or advertise that is none required) and/or auto PAYMENT amount the lessee must also include:

1. The advertisement is specifically for an auto lease.
2. The total amount due at auto lease signing.
3. The number, amounts, and due dates of any payments under the auto lease.
4. The mileage at which excess mileage starts and the charge per mile.
5. The statement "Plus Tax and License" if the quoted charges don't include taxes and related government fees.

WARRANTY RIGHTS: California requires that all warranties are honored on auto leases in the same way they are on financed/purchased vehicles.