Auto Leasing On New York Menu Again

After President Bush signed a federal highway bill last month, New Yorkers began seeing a new benefit -- auto leasing returning to their state.

Mercedes Benz was among the first of the auto manufacturers to annouce they would start leasing operations in New York again. That is because the highway bill bans vicarious liability, a law that holds a leasing company liable for a driver's negligence.

"This antiquated law has hurt the retail auto industry, and we are pleased that Congress has put an end to it," said Greater New York Auto Dealer Association President Mark Schienberg.

Schienberg's organization estimated that vicarious liability had cost New York consumers $280 million in excess costs since 2003 because auto manufacturers were unwilling to assume responsibility for vehicles they are not required to assume in other states.

posted by Consumer Help Web Editorial Team at 7:57 PM |