Honda to Stop Leasing Cars in New York
From Reuters
Honda Motor Co.’s U.S. auto financing arm said it no longer would lease cars in New York state as of July 31, citing a law that holds leasing companies liable for car accidents.
The move by the American Honda Finance Corp. follows similar actions taken by other automakers and auto lenders seeking to limit multimillion-dollar payouts in lawsuits filed by auto lessors who were in car accidents.
Because leasing companies are listed as owners on the titles of the vehicles they lease, the laws in New York, as well as Rhode Island, allow accident victims to sue them for damages.
Instead of leases, auto companies and lenders will offer so-called “balloon” loans, which work like leases but transfer ownership of the vehicle to the driver.
