Connecticut mandates clear fee disclosures for motor vehicle sales and leases

The Connecticut State Legislature has introduced Senate Bill 1357, aimed at enhancing transparency in the motor vehicle sales and leasing process. Introduced on April 8, 2025, the bill mandates that all fees, charges, and costs associated with the purchase or lease of motor vehicles be clearly disclosed to consumers.

The key provisions of Senate Bill 1357 require that any fees related to add-ons or services—such as maintenance contracts or vehicle identification number etching—be prominently displayed on both the vehicle's side window and in any written advertisements where the vehicle's price is shown. This initiative seeks to address consumer concerns regarding hidden costs that can inflate the final price of a vehicle, thereby promoting fairer practices in the automotive market.

Notably, the bill includes exceptions for licensed dealers who do not have possession of the vehicle at the time of sale or lease, relieving them from the disclosure requirements in such cases. This aspect has sparked some debate among lawmakers, with proponents arguing that it protects consumers from unexpected financial burdens, while opponents express concerns about the potential burden on dealerships, especially smaller ones.

The implications of Senate Bill 1357 are significant, as it aims to empower consumers with clearer information, potentially leading to more informed purchasing decisions. Experts suggest that increased transparency could foster greater competition among dealerships, ultimately benefiting consumers through better pricing and service options.

As the bill progresses through the legislative process, its supporters are optimistic about its potential to reshape the automotive sales landscape in Connecticut. If passed, the bill is set to take effect on July 1, 2025, marking a pivotal step toward consumer protection in the state's automotive industry.