What is Reg M? (Regulation M)

General Rule:

• Advertisements must be accurate and not misleading.
• The terms advertised must be usually and customarily available to consumers.
• If any specific lease terms (amounts or terms) are advertised, the lessor must usually and customarily lease or will lease the property at those amounts or terms.

Required Disclosures:

• If monthly payments or any amount related to the drive-off (e.g., down payment, security deposit) are advertised, the following must be disclosed clearly and conspicuously:
  • Number, amounts, and period of scheduled payments (e.g., "$399 per month for 36 months")
  • Total amount due at or before delivery (e.g., "$2,999 due at signing")
  • Whether a security deposit is required (e.g., "no security deposit required")
• If any percentage rate (e.g., APR) is used, it cannot be more prominent than any other required disclosures.
• Additional important disclosures may be required depending on the specific advertisement content, such as:
  • Open-end lease statement regarding potential end-of-lease charges
  • Exclusion of third-party fees (e.g., taxes, registration) from advertised payments