NY CUs Likely To Now Re-Enter Auto Leasing
Credit unions, banks and automakers in the Empire State are expected to jump back into the auto leasing market as a result of a provision of the federal highway transportation bill passed last week that bans the state's vicarious liability law that holds a leasing company liabile for a driver's negligence.
The law has forced leasing companies, including most credit unions, out of auto leasing because of the potential for million-dollar liability damages. Vicarious liability is a legal concept that holds a leasing company liable for the actions of the driver of a leased vehicle. New York was the last state to have the vicarious liability provision on its books.
Ed Roberts can be contacted at eroberts