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New York Consolidated Laws, Personal Property Law - PEP § 503. Total cost

Current as of January 01, 2026 | Updated by Findlaw Staff

1. A merchant shall maintain records that establish the merchant's cost for each item of merchandise that is the subject of the rental-purchase agreement.  A copy of each rental-purchase agreement and of the records required by this subdivision shall be maintained for at least two years following the termination of the agreement.

2. The maximum cash price for the merchant's first rental of the merchandise that is the subject of the rental-purchase agreement may not exceed 1.75 times the merchant's cost for appliances, 1.75 times the merchant's cost for electronic sets having merchant cost less than one hundred fifty dollars, 2.0 times the merchant's costs for electronic sets having merchant cost greater than or equal to one hundred fifty dollars, 2.15 times the merchant's cost for furniture, 2.0 times the merchant's cost for automotive accessories, jewelry, and musical instruments, and 1.75 times the merchant's cost for all other items.

3. The maximum total of payments may not exceed 2.25 times the maximum cash price that could have been charged for the first rental of the merchandise under subdivision two of this section.

4. The maximum total of payments for the merchant's second and subsequent rental of the merchandise that is the subject of the rental-purchase agreement may not exceed the maximum total of payments permitted under the terming matrix contained in subdivision five of this section.

5. (a) The terming matrix provided for in paragraph (b) of this subdivision shall be used to lower the number of periodic payments, which shall result in a lower total of payments and a lower maximum cash price for the used merchandise based on its age and condition, or, in the event that the merchant chooses to maintain the number of periodic payments of the original term when new, the merchant shall lower the total of payments and maximum cash price on a pro-rata basis.  The merchant shall keep in electronic or hard copy form, the matrix used, together with a record of the number of periodic payments provided in the first agreement for the item when it was offered as new, as well as a record of the item's condition as determined by the merchant pursuant to such matrix each time it is priced as used.  This requirement shall be satisfied by a record of the number of periodic payments and cash price from each rental-purchase agreement under which merchandise was rented.  These records shall be maintained as long as the item is owned by the merchant.  No merchant shall price used goods in excess of the prices dictated by the matrix.

(b) The attorney general shall make available in printed form to merchants and publish on the website of the department of law a terming matrix in chart form to be used by merchants as required pursuant to paragraph (a) of this subdivision.  The chart shall have as its title “Terming Matrix for Used Merchandise”.  The matrix chart shall conform to the example set forth in this paragraph and shall consist of five rows and five columns and shall be printed in at least ten point type.

TERMING MATRIX FOR USED MERCHANDISE

Original Term in Weeks when New

34 weeks or less

35--38 weeks

39--90 weeks

91 weeks or more

 

EXCELLENT CONDITION

subtract a minimum of 1 week from original term

subtract a minimum of 2 weeks from original term

subtract a minimum of 3 weeks from original term

subtract a minimum of 4 weeks from original term

 

GOOD
CONDITION

subtract a minimum of 3 weeks from original term

subtract a minimum of 5 weeks from original term

subtract a minimum of 7 weeks from original term

subtract a minimum of 9 weeks from original term

 

FAIR
CONDITION

subtract a minimum of 4 weeks from original term

subtract a minimum of 7 weeks from original term

subtract a minimum of 10 weeks from original term

subtract a minimum of 13 weeks from original term

 

POOR
CONDITION

subtract a minimum of 6 weeks from original term or cash sale

subtract a minimum of 10 weeks from original term or cash sale

subtract a minimum of 15 weeks from original term or cash sale

subtract a minimum of 20 weeks from original term or cash sale

(c) Immediately below the terming matrix, the following language shall be printed in ten point type.

New = Full Term

Excellent = In great shape.  Refurbished to look like new.

Good = In good working order.  Refurbished, but imperfections still exist.

Fair = Completely operational, but refurbishment has not concealed obvious wear and tear.

Poor = Ripped, faded, cracked or broken and refurbishment did not change it.

6. The maximum cash price for merchandise on its second or subsequent rental may not exceed the maximum total of payments for that merchandise as permitted under subdivision five of this section divided by 2.25.

7. Upon the written request of the attorney general a merchant shall provide copies of the records described in this section.

8. If a merchant intentionally discloses a cash price or a total of payments that exceeds the amount permitted by this section, the rental-purchase agreement is void, the consumer shall retain the merchandise without any obligation, and the merchant shall refund to the consumer all amounts paid.

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Cite this article: FindLaw.com - New York Consolidated Laws, Personal Property Law - PEP § 503. Total cost - last updated January 01, 2026 | https://codes.findlaw.com/ny/personal-property-law/pep-sect-503/

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