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In July 2024, a new version of R.S.A. 361-A went into effect. The recent legislative changes clarified the definition of “cash sale price” and related fees in retail installment contracts, which has prompted many questions from dealers about what can be included in the cash sale price, how administrative and title fees should be handled, and where these amounts must appear on the Purchase Agreement and Retail Installment Contract. Understanding these distinctions is critical for compliance and for maintaining transparency with customers.
What is Cash Sale Price and Where Should It Be Listed?
Under RSA 361-A:1, IV, the cash sale price is the price at which the dealer offers to sell the vehicle for cash in the ordinary course of business. This amount can include taxes, registration fees, charges for accessories and installation, and costs for delivery, servicing, repairs, or improvements offered by the dealer. In short, it’s the total price a customer would pay if buying the vehicle outright.
The Purchase Agreement should clearly itemize all charges that make up the cash sale price and display the total prominently in the Purchase Agreement.
On the Retail Installment Contract, the cash sale price should be carried over from the Purchase Agreement and listed as the first item in the Retail Installment Contract’s required calculation.
Administrative Fees
R.S.A. 361-A allows a dealer to charge an administrative fee, as long as the administrative is charged on every sale (whether cash or financed) and is similar in nature to taxes or registration fees. The administrative fee should be listed as a line item on the Purchase Agreement, which is included in the “cash sale price.” Since the “cash sale price” on the Purchase Agreement is carried over into the Retail Installment Contract, the administrative fee should not be listed as a separate line item on the Retail Installment Contract. Rather, the administrative fee is already reflected in the overall “cash sale price.”
Title Fees
R.S.A. 361-A defines “title fees” as the actual cost for filing, recording, investigating, perfecting, and releasing or satisfying a retained title or lien. These fees must not exceed the amount charged by the DMV or other agency, which is currently $25.00 and will be $35 in 2026 and under RSA 261:4, IV a $2 fee allowed to the dealer for form preparation. On the Retail Installment Contract, title fees should be itemized under “Amounts Paid to Others on Your Behalf.”
Why This Matters
Consistency and transparency are key. The cash sale price on the Purchase Agreement should match the figure carried into the Retail Installment Contract. Administrative fees should never appear as separate line items on the installment contract, and title fees must reflect actual DMV costs. Clear communication with customers about these charges helps avoid misunderstandings and potential claims of unfair practices.
For any questions on this matter, don’t hesitate to reach out to support@nhada.com or call the office at 603-224-2369.
Dan Bennett, REM, IOM, CAE
NHADA
dbennett@nhada.com
603-224-2369
Hilary Holmes Rheaume
Bernstein Shur, an NHADA Gold Partner
hrheaume@bernsteinshur.com
603-665-8839