NJ A4081

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 for non-certified checks, with penalties up to $500 for first violations and $1,000 for subsequent violations.

Constructive levies on vehicles by creditors are invalidated 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 financial responsibility for levies on vehicles not in a creditor's actual possession.