2025-22813RuleWallet

Feds Decide Which Fancy Leases Deserve Less Protection

Published Date: 12/15/2025

Rule

Summary

Starting January 1, 2026, the dollar limit for consumer leases that don’t have to follow certain rules is going up from $71,900 to $73,400 because of inflation. This change affects people who lease things like cars or equipment and makes sure the rules keep up with rising prices. It’s a simple update that helps protect consumers and businesses by keeping the leasing rules fair and clear.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 3 costs, 0 mixed.

Exemption Threshold Raised to $73,400

The dollar threshold for exempt consumer leases increases from $71,900 to $73,400 effective January 1, 2026. If the total contractual obligation of a consumer lease exceeds $73,400 at consummation, that lease is exempt from the requirements of Regulation M during the period January 1, 2026 through December 31, 2026.

Annual CPI‑W Indexing and $100 Rounding Rule

The exemption threshold is adjusted each January 1 by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that was in effect on the preceding June 1. Any increase is rounded to the nearest $100 (for example, a $950 calculated increase is rounded to $1,000; a $949 increase is rounded to $900).

Exemption Status Locked at Consummation

If a consumer lease is exempt from Regulation M because its total contractual obligation exceeded the threshold at the time of consummation, that lease remains exempt even if the threshold later increases. The rule explicitly states exemption status is determined at consummation and is not undone by subsequent threshold changes.

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Key Dates

Published Date
Rule Effective
12/15/2025
1/1/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Reserve System
Consumer Financial Protection Bureau
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