NEW YORK -- Various captive financing arms and vehicle associations, state and national, were in New York Aug. 10, in praise of President Bush and the U.S. Congress for the recently signed federal transportation bill, which, among other things, repealed vicarious liability.
Groups such as Chrysler Financial, American Honda Finance Corp. and the National Vehicle Leasing Association held a press conference lauding passage of the bill, Autoremarketing.com reported.
Despite industry efforts to remove vicarious liability from New York in the past, the law remained. By repealing the law, lessors are no longer liable for the actions of negligent drivers of leased vehicles.
According to the report, many industry executives complained that the law hurt retail in the state, but this legislation offers a potential turn around.
Chrysler Group, General Motors and Ford all made plans to return leasing to the state immediately after the bill was passed.
As of Aug. 19, American Honda Finance Corp. said its lease acquisition fee will be reduced to a nationwide standard of $595, the report said.
Jess Toprak, an Edmunds.com senior analyst, said the legislation will lead to higher lease penetration rates.
