Tennessee § 55-24-104 - Leased vehicles — Refunds.

§ 55-24-104. Leased vehicles — Refunds.

In the case of a leased vehicle, refunds will be made to the lessor and lessee as follows: The lessee will receive the lessee cost and the lessor will receive the lease price less the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle. For purposes of this section: “Lease price” means the aggregate of: Lessor's actual purchase cost; Freight, if applicable; Accessories, if applicable; Any fee paid to another to obtain the lease; and An amount equal to five percent (5%) of subdivision (b)(1); “Lessee cost” means the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle less service fees; and “Service fees” means the portion of a lease payment attributable to: An amount for earned interest calculated on the rental payments previously paid to the lessor for the leased vehicle at an annual rate equal to two (2) points above the prime rate in effect on the date of the execution of the lease; and Any insurance or other costs expended by the lessor for the benefit of the lessee. Acts 1986, ch. 857, § 4; T.C.A. § 55-24-204 . Code Commission Notes. Former part 2, §§ 55-24-201 to 55-24-212 , was transferred to part 1, §§ 55-24-101 to 55-24-112 , by the code commission in 2008. Compiler's Notes. Former part 1, §§ 55-24-101 — 55-24-109 (Acts 1984, ch. 1004, §§ 1-9), concerning motor vehicle warranties, was repealed by Acts 1986, ch. 857, § 11. For new law, see §§ 55-24-101 to 55-24-112 .