fastcarz3

for all the new york people that get the newsday newspaper there is a huge full page print about honda stopping all its leasing programs due to some kind of liabilty issue law. Starting in July it will start taking cars back and no more lease programs will be offered from honda. Can someone confirm this and explain whats gonna happen i donno if acura is gonna be subject to this too.

jdone

Just one more thing you can thank the American Trial Lawyers Association for. When are the American sheeple going to rebel?

fsttyms1

yeav if people would stop sueing every body in this country for no good or ligit reason this country would be a better place

pianoman41

According to what I've read, current leases are unaffected but once your lease expires, American Honda will not renew it.

2007AcuraRL

I dont think they can recall cars already out on existing leases. It would be a breach of the lease. Imagine that for a change, the Lessor breaching a lease! HA that would be a first.

In reality, as I understand it, that they will no longer lease new vehicles due to some liability laws in NY that hold the Lessor liable for acts of the Lessee. A legitimate reason for them to not want to lease anymore when you think about it. Its the NY legislature, not the american trial lawyers association, that is to shame here.

MikeElmendorf

Actually, it is the New York State Assemby and the Trial Lawyers.

Basically, in a nutshell, the situation is this:

There is a law on the books from nearly a century ago that basically made the owner of a vehicle liable for damages caused by the operator. This is called vicarious liability. This made sense in a time when you had livery cab owners renting vehicles out to operators who had no assets, insurance, or resources, and so when there was an accident, the victims has no one to recover from.

One hundred years later, this makes no sense whatsoever.

The effect of this law now is that if you have an accident in your car that is leased, you get sued, your insurance company gets sued AND American Honda Finance gets sued. Does that make sense to you? Me neither.

Better yet, the same rule applies for car rental companies. AND, thanks to another statute, they are obligated to rent a car to anyone who is 18 and has a valid driver's license. So, while they have no room for any discretion, they are liable for whatever an operator of their vehicle does. This makes no sense, either.

Governor Pataki supports vicarious liability reform. The Senate passed a bill to make the changes necessary to keep leasing alive in New York State. The Bar Association--in a rare split with the trial lawyers--even supports it. But, the Democrat Assembly has refused to act on it. They think it is not a real problem--and it's a money grab, too, since with these half-baked balloon payment options that are replacing leasing, the whole car is taxable, not just the depreciation as is the case with a lease.

This is bad for consumers. It's bad for businesses. It's bad for government (which leases most of its vehicles). It's bad for dealerships and the car industry. It's only good for lawyers looking for deep pockets to dip into.

The idea that car manufacturers are liable for what YOU do with the car when you are operating it is absurd on its face. And it is an outrage that New Yorkers are being denied the option of leasing a car because of the failure of the New York State Assembly to take appropriate action. The result is going to be making a new car unaffordable for many families. After all, it's the Democrats that look out for the little people. Right.

If you live in New York, write to your Assemblymember and demand that they act on this legislation. The votes are there; the Speaker of the Assembly, however, who by the way, is the principal of a personal injury law firm, has refused to allow the bill to go to a vote. Tell them that you want the same options as a consumer that residents of other states have. Leasing in NY WILL resume if this antiquated law is changed...

bigman

the dealers will offer lease plans through other leasing companies, problem is that these companies will have those hidden fees and other crap that will kill leasing and sales for hond in NY.

MikeElmendorf

Not so sure other third-party leasing companies are still going to play here, either. It's not just Honda--GM, Ford, Chrysler, etc have all done the same or are about to. Most of the manufacturers are coming up with "lease like" balloon payment deals, but it costs more and is not nearly as good of a deal.

galfert

yeah balloon deals suck. It is better to get a car loan. It is even better to use a home equity line of credit and that way you have a low interest rate and the tax on the interest is tax deductable.

dean078

and for those who own their cars, just hope that it doesn't get stolen. Let's say a theif runs into a store with your car and causes $100k in damages, and your property damage limit is like $50k. Who do you think the store is going to sue?

It's like the lady that was in a store and fell because she tripped over a kid. She sued the store and won. It was her kid she tripped over.

MikeElmendorf

Dean,

Doesn't work that way. I believe vicarious liability applies only to authorized use. Of course, you could probably be held liable by a wacky jury if you didn't take appropriate steps to secure the vehicle against theft.

And, buying is not a good option at all if you are like me and only want a car for 2-3 years. You get hammered on the depreciation.

ME

MikeElmendorf

Update:

TORRANCE, Calif., July 15 /PRNewswire/ -- American Honda Finance
Corporation (AHFC), a wholly owned subsidiary of American Honda Motor Co.,
Inc., today announced that AHFC and its affiliates will continue to offer
vehicle lease contracts in the states of Connecticut and Rhode Island. This
decision follows action by Connecticut and Rhode Island legislators to amend
archaic state laws that hold auto lessors liable for the actions of lessees
and subject to unreasonable damages in vicarious liability lawsuits.
"We are grateful that Connecticut and Rhode Island legislators have voted
to change their vicarious liability laws, which have created significant
uncertainty for auto leasing companies," said Steve Smith, senior vice
president of American Honda Finance Corp. "Although the Rhode Island action
provides a temporary one-year solution, we are hopeful that a permanent
solution can be agreed to in the next legislative session."
The new provision requires that lessees maintain liability insurance
coverage of at least $100K/300K/50K, which are the current AHFC requirements.
"The action by legislators will enable Honda to continue providing this
popular product to Connecticut and Rhode Island consumers," added Smith. "We
hope that New York will soon follow suit."
AHFC and its affiliates still plan to suspend all vehicle leasing on
July 31st to residents of the state of New York, the only other state in the
country that maintains a vicarious liability statute. Honda and other leasing
companies have been working to abolish archaic vicarious liability laws that
allow financial institutions to be sued in cases against lessees who are found
negligent in an auto accident.

SOURCE American Honda Motor Co., Inc.
-0- 07/15/2003
/CONTACT: Mike Spencer, +1-310-783-3165, or Andy Boyd, +1-310-783-3163,
both of American Honda Motor Co., Inc./
/Web site: http://www.honda.com /

CO: American Honda Motor Co., Inc.; American Honda Finance Corporation; AHFC
ST: Connecticut, Rhode Island, California, New York
IN: AUT FIN
SU: LAW LEG

TimN88

I'm suprised this hasnt come up before. If leasing a car was so financially risky for the leaser, i'm suprised the company's lawyers wouldnt say something.