NY CUs Likely To Now Re-Enter Auto Leasing

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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 urnal.com.

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