NJ S508

Dealers must pay off the remaining loan balance on a customer's trade-in vehicle within 15 days of taking possession, with penalties of up to $1,000 for a first violation and $2,000 for subsequent violations.

Secured parties (lenders) must release vehicle titles within 15 days of receiving payoff payment, or within 15 days of funds clearing for non-certified checks, with penalties of up to $500 for a first violation and $1,000 for subsequent violations.

Constructive levies on motor vehicles by creditors become invalid unless the creditor seizes and 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 taken actual possession of the vehicle prior to the sale.