1SICKLEX

Honda’s U.S. auto financing arm said on Tuesday the firm will no longer lease cars in New York state as of July 31, citing a law that holds leasing companies liable for car accidents.

fuzzy02CLS

iTrader: (2)

Yeah I heard that with other auto makers also. Wonder what would happen if I moved back there? Would they terminate my lease?

Beelzebub

no it only applies to new leases.

NOVAwhiteTypeS

hmm so what happens when u get into an accident

Beltfed

I am assuming this won't last, Honda one way or the other will still continue to lease in NY. They have to, do you know how many people lease Hondas? Due to their high residuals, many people lease rather than buy Honda vehicles.

If the law doesn't get overturned, some other lease scenerio will have to come about.

Beelzebub

The law states that not only can you sue the person driving but also the leasing company is liable.

This is causing EVERY leasing company to not make any new leases in New York. I will assume that this will get overturned as the financial implications are too large for it to stop happening. All those company out of business and all the corporations that lease fleets of vehicles for their employees will have to cause this to change.

1SICKLEX

Yeah, I thought its nuts.

Moog-Type-S

What kind of a lame ass law is this??
How can a lease company be liable for an accident?

typeR

this doesnt sound new...it's why i have to have 100/300K insurance

Beltfed

Its not, this F*ing law dates back to like the 20's......

Tom2

This is old news already....

Ford already has an alternative to its normal lease programs in New York. It's basically the same exact thing as a lease, but the car is no longer titled under Ford leasing.

I'm sure the industry will do something to have the law changed soon, and all the manufacturers will return to normal leasing.

6speedctrlfreak

Honda is not alone in this...There are some other auto companies that have followed suit with Honda...can't think of which ones at the moment though. This is an end result of the abuse/rush to sue activity that has been building ang building in the US in the last 5 years

JRock

WHY THE SAME WAY A GUN MANUFACTURER SHOULD BE SUED WHEN SOMEONE KILLS SOMEONE ELSE WITH ONE OF THEIR GUNS.



They shouldn't be held liable, it's stupid. What a ridiculous law.

Titand19

Beltfed, I don't know which Avatar is scarier.

kensteele

that's a little bit different.

there are some handguns that are manufactured for the sole purpose of "falling into the hands of outlaws and criminals" and are "low dollar value guns that make it easy to use and trade illegally on the black market" and "fire small caliber rounds who's only useful purpose"...is to kill another person.

you can believe it or not...but if it can be proven in court...then it is so.

years and years and years ago before this all went south, i had a handgun where the ONLY usefulness of it was to hide it and conceal it and shoot another person. it didnt' even have sights. you couldn't use it for rats, not for target practice, to learn to shoot handguns, it was ugly so it has no aestetical value, it was made of cheap, short-life parts, it was good for about a couple hundred shots at close range...it was made to kill people.

sue the company who made that gun, that's irresponsible and reckless.

Beltfed

Its far from the same thing as a lease, just similar payments. This is a balloon payment setup, its just a different form of financing and the buyer holds the title (relieves the bank off all responsibility).

Car dealers always had balloon loans available, but they are hardly used because they basically suck. If you are going to buy the car, you're better off just doing a straight finance.

Chief F1 Fan

Guys, lemme illuminate this point a bit. In NYS, the OWNER of a vehicle can be held accountable under the auspices of "Use and permission" which says if I as owner give you as borrower permission to use my vehicle and you get in a wreck, then I am equally as responsible. Imagine w/o what would happen: You borrow my car, you have no insurance, assets, zip, you go out and kill some guy making 100K /year b/c you blow through a red light while he's in the crosswalk. Now who do you sue as grieving widow w/ kids? She just lost not only her husband but 100K/year for x amount of years. You can' t sue the goof w/ no insurance/assets b/c you will be wasting your time. That is why the law was enacted back in the 20's as someone else said. The lease companies are the owners of the vehicle until you pay it off (different than bank loan to purchase).

Tom2

Yeah, that's what I meant.... the payment terms are almost exactly the same as a normal lease. You can put a few grand down and have much lower payments than if you did a conventional auto loan.

But like I said, the car is titled in the buyers name, not the leasing company.