NJ A2417

Motor vehicle dealers must pay off the remaining loan balance on a customer's trade-in vehicle within 15 days of taking possession and provide proof of payment upon request

Dealers who fail to pay off trade-in loans face penalties up to $1,000 for the first offense and $2,000 for subsequent offenses, plus any late fees incurred by the customer

Secured parties (lenders) must release vehicle titles within 15 days of receiving payment, or within 15 days of funds clearing if paid by non-certified check, with penalties up to $500 for first violations and $1,000 for subsequent violations

Constructive levies on vehicles by judgment creditors become invalid unless the creditor takes actual physical possession within 30 days of filing notice with the Motor Vehicle Commission

Good faith purchasers of trade-in vehicles are protected from creditor levies unless the creditor had already seized and taken actual possession of the vehicle