Ford Quits Leasing in New York

Old lease laws on the books for many decades will force Ford out of the
leasing business in New York state, the company said recently. The laws
in question are similar to other “vicarious liability” laws in Rhode
Island and Connecticut, among others, where automakers can be held
liable for damages incurred by a lease customer in an accident.

Ford customers in New York will still be able to choose a “Red
Carpet” option from the company’s financial offerings, but it will be a
balloon loan that could cost customers between $1,000 and $1,500 extra
in taxes.

The New York state senate is working on legal reform for the
provision in state code; GM has also said it may end leasing in the
state as a result of its liability exposure.

Related article: Vehicle Leases Endangered in New York


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