New Yorkers are used to getting their car rental contracts signed by a broker who, if there’s a vacancy, delivers the car and then pays for the rental, often with a deposit.
However, when the car doesn’t show up, that broker has a lot of leverage over renters and can get a contract cancelled without their knowledge.
The New York Post reported in February that a Brooklyn car rental company was taking advantage of this loophole by letting car rental companies refuse to rent cars when there is a rental dispute, resulting in the renter’s deposit going unpaid.
The Post noted that the car rental brokers were not registered with the New York City Department of Finance, so their drivers were not required to provide their driver’s licenses or other identification.
New York state law prohibits the rental companies from charging renters for a car when there’s an outstanding lease, and it’s illegal to refuse to accept a car after it has been rented.
So if you want a car, make sure to check with the car leasing company to make sure it’s registered with New York state, as well as the New Jersey Department of Financial Services and the New Hampshire Division of Motor Vehicles.
Car rental companies have been making changes to make it easier for people to get cars, including letting them cancel a car loan when the rencer pays more than they’re due.
But a car lease is still a contract, and the rental company is not required by law to allow renter to cancel their car lease.
For instance, if a renter pays more for a rental than they agree to pay for the car, they have the option to cancel the car lease and get a new lease at no cost to the rencher.