{"data":{"id":"us-ny/n.y.-personal-property-law-503","jurisdiction":"us-ny","citation":"N.Y. Personal Property Law § 503","heading":"Total cost","body":"§ 503. Total cost. 1. A merchant shall maintain records that establish\nthe merchant's cost for each item of merchandise that is the subject of\nthe rental-purchase agreement. A copy of each rental-purchase agreement\nand of the records required by this subdivision shall be maintained for\nat least two years following the termination of the agreement.\n  2. The maximum cash price for the merchant's first rental of the\nmerchandise that is the subject of the rental-purchase agreement may not\nexceed 1.75 times the merchant's cost for appliances, 1.75 times the\nmerchant's cost for electronic sets having merchant cost less than one\nhundred fifty dollars, 2.0 times the merchant's costs for electronic\nsets having merchant cost greater than or equal to one hundred fifty\ndollars, 2.15 times the merchant's cost for furniture, 2.0 times the\nmerchant's cost for automotive accessories, jewelry, and musical\ninstruments, and 1.75 times the merchant's cost for all other items.\n  3. The maximum total of payments may not exceed 2.25 times the maximum\ncash price that could have been charged for the first rental of the\nmerchandise under subdivision two of this section.\n  4. The maximum total of payments for the merchant's second and\nsubsequent rental of the merchandise that is the subject of the\nrental-purchase agreement may not exceed the maximum total of payments\npermitted under the terming matrix contained in subdivision five of this\nsection.\n  5. (a) The terming matrix provided for in paragraph (b) of this\nsubdivision shall be used to lower the number of periodic payments,\nwhich shall result in a lower total of payments and a lower maximum cash\nprice for the used merchandise based on its age and condition, or, in\nthe event that the merchant chooses to maintain the number of periodic\npayments of the original term when new, the merchant shall lower the\ntotal of payments and maximum cash price on a pro-rata basis.  The\nmerchant shall keep in electronic or hard copy form, the matrix used,\ntogether with a record of the number of periodic payments provided in\nthe first agreement for the item when it was offered as new, as well as\na record of the item's condition as determined by the merchant pursuant\nto such matrix each time it is priced as used.  This requirement shall\nbe satisfied by a record of the number of periodic payments and cash\nprice from each rental-purchase agreement under which merchandise was\nrented. These records shall be maintained as long as the item is owned\nby the merchant. No merchant shall price used goods in excess of the\nprices dictated by the matrix.\n  (b) The attorney general shall make available in printed form to\nmerchants and publish on the website of the department of law a terming\nmatrix in chart form to be used by merchants as required pursuant to\nparagraph (a) of this subdivision. The chart shall have as its title\n\"Terming Matrix for Used Merchandise\". The matrix chart shall conform to\nthe example set forth in this paragraph and shall consist of five rows\nand five columns and shall be printed in at least ten point type.\n                   TERMING MATRIX FOR USED MERCHANDISE\nOriginal Term                                               91 weeks\n  in Weeks      34 weeks      35 - 38 weeks  39 - 90 weeks  or more\n  when New       or less\nEXCELLENT      subtract a     subtract a     subtract a     subtract a\nCONDITION      minimum of 1   minimum of 2   minimum of 3   minimum of\n               week from      weeks from     weeks from     4 weeks\n               original       original       original       from ori-\n               term           term           term           ginal term\nGOOD           subtract a     subtract a     subtract a     subtract a\nCONDITION      minimum of 3   minimum of 5   minimum of 7   minimum of\n               weeks from     weeks from     weeks from     9 weeks\n               original       original       original       from ori-\n               term           term           term           ginal term\nFAIR           subtract a     subtract a     subtract a     subtract a\nCONDITION      minimum of 4   minimum of 7   minimum of 10  minimum of\n               weeks from     weeks from     weeks from     13 weeks\n               original       original       original       from ori-\n               term           term           term           ginal term\nPOOR           subtract a     subtract a     subtract a     subtract a\nCONDITION      minimum of 6   minimum of 10  minimum of 15  minimum of\n               weeks from     weeks from     weeks from     20 weeks\n               original       original       original       from ori-\n               term or cash   term or cash   term or cash   ginal term\n               sale           sale           sale           or cash\n                                                            sale\n  (c) Immediately below the terming matrix, the following language shall\nbe printed in ten point type.\nNew = Full Term\nExcellent = In great shape. Refurbished to look like new.\nGood = In good working order. Refurbished, but imperfections still\nexist.\nFair = Completely operational, but refurbishment has not concealed\nobvious wear and tear.\nPoor = Ripped, faded, cracked or broken and refurbishment did not change\nit.\n  6. The maximum cash price for merchandise on its second or subsequent\nrental may not exceed the maximum total of payments for that merchandise\nas permitted under subdivision five of this section divided by 2.25.\n  7. Upon the written request of the attorney general a merchant shall\nprovide copies of the records described in this section.\n  8. If a merchant intentionally discloses a cash price or a total of\npayments that exceeds the amount permitted by this section, the\nrental-purchase agreement is void, the consumer shall retain the\nmerchandise without any obligation, and the merchant shall refund to the\nconsumer all amounts paid.","path":["Personal Property Law","Article 11. Rental Purchase Agreements"],"source_url":"https://legislation.nysenate.gov/api/3/laws/PEP/503","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"6f22ef2d8747df547b89c78f376be9591feff56ba51caa92b9bc4ad3496fc180","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-personal-property-law-502","next":"us-ny/n.y.-personal-property-law-504"},"notice":"GroundRules: Original legal text. Not legal advice."}