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CHAPTER 429
MOTOR VEHICLE CONSUMER LEASES
SUBCHAPTER I
GENERAL PROVISIONS
429.101   Title.
429.102   Applicable law.
429.103   Construction against implied repeal.
429.104   Definitions.
SUBCHAPTER II
DISCLOSURES; LIMITATIONS ON AGREEMENTS
AND PRACTICES
429.201   Prelease availability of consumer lease form.
429.202   Advance payment or trade-in; refund or return.
429.203   Requirements of a consumer lease.
429.204   Gap amount; notice.
429.205   Security interest.
429.206   Determination of realized value upon early termination.
429.207   Restrictions on early termination obligation.
429.208   Assessment of excess wear and damage.
429.209   Renegotiations and extensions.
SUBCHAPTER III
PENALTIES AND REMEDIES
429.301   Penalties and remedies.
GENERAL PROVISIONS
429.101429.101Title. This chapter may be cited as the Wisconsin motor vehicle consumer lease act.
429.101 HistoryHistory: 1995 a. 329.
429.102429.102Applicable law.
429.102(1)(1)To the extent that ss. 218.0101 to 218.0163 and chs. 411 and 421 to 427 are inconsistent with this chapter, the provisions of this chapter shall apply.
429.102(2)(2)Unless superseded by the particular provisions of this chapter, parties to a motor vehicle consumer lease have all of the obligations, duties, rights and remedies provided in ss. 218.0101 to 218.0163 and chs. 411 and 421 to 427 that apply to the transaction.
429.102 HistoryHistory: 1995 a. 329; 1999 a. 31.
429.103429.103Construction against implied repeal. This chapter being a general act intended as a unified coverage of its subject matter, no part of this chapter shall be construed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
429.103 HistoryHistory: 1995 a. 329.
429.104429.104Definitions. In this chapter:
429.104(1)(1)“Adjusted capitalized cost” means the amount computed by subtracting from capitalized cost any capitalized cost reduction, for the purpose of determining the base periodic payment.
429.104(2)(2)“Average periodic depreciation” means the adjusted capitalized cost, after first subtracting the residual value, divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.
429.104(3)(3)“Average periodic rent charge” means the rent charge for the scheduled term of the consumer lease divided by the number of payment periods under the consumer lease or, for a single-payment lease, the number of months in the term of the lease.
429.104(3m)(3m)“Balance subject to a rent charge” means:
429.104(3m)(a)(a) In the case of a lease other than a single-payment lease, the amount calculated by subtracting from the adjusted capitalized cost the sum of the first base periodic payment and all depreciation amounts accrued during any preceding payment periods.
429.104(3m)(b)(b) In the case of a single-payment lease, the amount calculated by subtracting the total rent charge from the sum of the residual value and all rent charges accrued during any preceding computational periods.
429.104(4)(4)“Base periodic payment” means an amount determined as follows:
429.104(4)(a)(a) With respect to a single-payment lease, the product of the number of months in the scheduled term of the lease multiplied by the sum of the average periodic rent charge and the average periodic depreciation.
429.104(4)(b)(b) With respect to a lease other than a single-payment lease, the sum of the average periodic rent charge and the average periodic depreciation.
429.104(6)(6)“Capitalized cost reduction” means the sum, at the time of inception of the consumer lease, of any payments made by cash, check, rebates or the like that constitute a downpayment made by the lessee and the net amount credited by the lessor for any trade-in. The term does not include any base periodic payments due at the inception of the consumer lease.
429.104(7)(7)“Conspicuous” means that the term or clause is so written as to be distinguished from other terms or clauses by type size or in some other manner. The term includes any writing in at least 10-point boldface type.
429.104(9)(9)“Consumer lease” or “lease” means a lease entered into in this state that transfers the right of possession and use by a natural person of a motor vehicle primarily for a personal, family, household or agricultural purpose, for a period of time exceeding 4 months, if the total lease obligation, excluding any option to purchase or otherwise become owner of the motor vehicle at the expiration of the consumer lease, does not exceed $25,000. The term does not include a credit sale, as defined under 12 CFR 226.2 (a) (16).
429.104(10)(10)“Early termination” means termination of a consumer lease before the termination date set forth in the consumer lease.
429.104(11)(11)“Federal consumer leasing act” means the federal consumer leasing act, as amended, 15 USC 1667-1667e, and regulations issued under that act.
429.104(12)(12)“Gap amount” means the difference between the amount to be paid by the lessee under the consumer lease in the event of total loss or destruction of the leased vehicle prior to expiration of the lease term by theft, physical damage, or other occurrence specified in the lease, and the actual cash value or portion thereof received by the lessor from insurance proceeds or from any other person on account of the total loss or destruction of the motor vehicle. The term does not include any deductible amount under any applicable insurance policy maintained by the lessee, any past-due payments owed by the lessee at the time of receipt by the lessor of the actual cash value or portion thereof from insurance proceeds or from any other person, or any other amount due under the lease resulting from default by the lessee.
429.104(13g)(13g)“Gap insurance” means insurance coverage, offered by an insurer authorized to transact business in this state, that provides that another person is liable for the gap amount.
429.104(13k)(13k)“Gap waiver” means a provision in a consumer lease offered or sold pursuant to the terms of s. 218.0148.
429.104(13m)(13m)“Gross capitalized cost” means the sum of all amounts capitalized in the consumer lease that, after subtracting the capitalized cost reduction, amortizes to the residual value by the depreciation portion of the periodic lease payments over the scheduled term of the lease or, for a single-payment lease, the single payment. These amounts may include taxes; fees for registration, license, acquisition, administration and assignment; other fees; charges for insurance, service contracts and extended warranties; and charges for accessories and their installation, for other services and benefits incidental to the consumer lease, and for delivering, servicing, repairing or improving the vehicle. With respect to a vehicle or other property traded in connection with a consumer lease, the term may include the outstanding unpaid balance of the amount financed under a consumer loan, as defined in s. 421.301 (12), or a retail installment contract, as defined in s. 218.0101 (32), or the unpaid balance of any early termination costs under a lease or other obligation of the lessee. The term does not include any rent charge.
429.104(14)(14)“Group credit insurance” means group credit life insurance, group credit accident insurance, group credit accident and health insurance, group disability insurance or group credit unemployment insurance.
429.104(15)(15)“Holder” means, with respect to a consumer lease, the lessor and, upon assignment of the lease, the assignee for the period of assignment. The term does not include a pledgee of a consumer lease or the owner or beneficiary of an interest in a trust that owns consumer leases.
429.104(17)(17)“Lessee” means a natural person who leases a motor vehicle from a lessor under a consumer lease.
429.104(18)(18)“Lessor” means a person regularly engaged in the business of leasing or selling vehicles who leases a motor vehicle to a lessee under a consumer lease.
429.104(19)(19)“Motor vehicle” has the meaning given in s. 218.0101 (22).
429.104(20)(20)“Periodic” means weekly, monthly, quarterly or any other period of time specified in a consumer lease.
429.104(21)(21)“Prospective lessee” means a natural person who enters into a prelease agreement under s. 218.0144 with a prospective lessor, or who otherwise intends to become a lessee.
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2023-24 Wisconsin Statutes updated through all Supreme Court and Controlled Substances Board Orders filed before and in effect on January 1, 2025. Published and certified under s. 35.18. Changes effective after January 1, 2025, are designated by NOTES. (Published 1-1-25)