(a) 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.
Terms Used In Tennessee Code 55-24-104
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Lessee: means any consumer who leases a motor vehicle pursuant to a written lease agreement by which a manufacturer's warranty was issued as a condition of sale or which provides that the lessee is responsible for repairs to the motor vehicle. See Tennessee Code 55-24-101
Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
(b) For purposes of this section:
(1) “Lease price” means the aggregate of:
(A) Lessor’s actual purchase cost;(B) Freight, if applicable;(C) Accessories, if applicable;(D) Any fee paid to another to obtain the lease; and(E) An amount equal to five percent (5%) of subdivision (b)(1);(2) “Lessee cost” means the aggregate deposit and rental payments previously paid to the lessor for the leased vehicle less service fees; and(3) “Service fees” means the portion of a lease payment attributable to:
(A) 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(B) Any insurance or other costs expended by the lessor for the benefit of the lessee.
