Auto Giants to resume auto leasing in United States

Auto Giants to resume auto leasing in United States

General Motors Corp., Ford Motor Co. and DaimlerChrysler AG’s Chrysler have decided to resume auto leasing in New York, after pulling out in 2003. It happened because a state law let lease providers be held liable in accidents. The plans are due to be announced this coming august 10. And reason behind this change of heart is the new federal rule that takes effect under a highway-funding bill that President George W. Bush is to sign that day.

That rule would be taking precedence over the state’s so- called vicarious liability law as per the reports in the media. Nicholas Crispe, a spokesperson for the Greater New York Automobile Dealers Association said in a statement: “Every other state but New York had eliminated these laws, so the state has been an anomaly. Because of that, the cost of leasing vehicles here had become too great.”

All of the major automakers including the Japanese giants Toyota and Honda and Nissan objected to the law in 2003, which held their finance units potentially liable for accidents involving or caused by customers driving vehicles the units leased. Honda itself later began a lease like program to get back in the market.

Company representative Mike Spencer said: “From a business standpoint our dealers thought it was really important to get back into that market. Vicarious liability laws in New York are antiquated and out of date. We’re very happy that this is being changed.”