Leased Vehicles Under Maryland Lemon Law
How Maryland Lemon Law (§ 14-1501) applies to leased vehicles — lessees protected; refund includes lease payments + sales tax + residual.
Leased vehicles are covered by Maryland’s Lemon Law (§ 14-1501) on the same terms as purchased vehicles. The lessee — not the lessor — is the protected “consumer.”
Lease coverage
- Lessee is the protected consumer.
- Lessor (bank / finance company) has no Lemon Law standing.
- Manufacturer is the Lemon Law defendant.
- Lease term + warranty period define the Rights Period.
What’s recoverable in a leased-vehicle refund
§ 14-1502(e) refund covers:
- All lease payments made to date.
- Sales tax paid on lease payments.
- Capitalized cost reduction / down payment.
- Acquisition fee.
- Disposition fee (waived).
- Excess mileage / wear charges (waived).
- Incidental damages.
Plus the lease is terminated with no further obligation.
Lease termination process
After award:
- Manufacturer pays the lessor the residual.
- Lessee surrenders the vehicle.
- Lessor releases the lessee from further obligation.
- Lessee receives the lease-payment refund.
CPA application
Maryland CPA applies to lease deceptive practices.
Bottom line
Leased vehicles get the same Lemon Law protection under § 14-1501. The refund covers lease payments + tax + fees + incidental damages plus terminates the lease.
Related
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