MI HB5460

Permits installment sale contracts for new motor vehicles to allow unequal monthly payments if no single payment exceeds 40% more than the first scheduled payment and does not exceed the buyer's maximum payment threshold set by the seller.

Prohibits licensees from charging fees based solely on unequal payment amounts or fees related to prepayment when a motor vehicle is resold under these contracts.

Requires installment sale contracts for new motor vehicles to include a notice stating customers should review the payment schedule to determine if the contract requires equal payments.

Maintains existing prohibitions on excessive charges and fees while clarifying that costs for guaranteed asset protection waivers complying with federal Truth in Lending Act are not considered finance charges.

Takes effect immediately upon approval (July 23, 2024).