The Ford Motor company’s finance division announced plans to stop leasing automobiles in New York state as of July, due to the state’s present “vicarious liability” law which holds leasing companies liable for damages arising from auto accidents.
New York, along with Rhode Island and Connecticut, holds the owners of vehicles involved in accidents liable for damages. A lessor retains this responsibility, even though they have for all practical purposes transferred responsibility for the vehicle’s operation to the lessee. Proposals to change the focus of liability have passed the NY Senate, but have not as yet been approved by the state’s legislature.
According to a report from Reuters News Agency, leasing accounts for around 25 percent of Ford’s car sales in New York. The company plans to replace the present leasing system with an outright sale on credit to the car buyer, who will then become the owner, subject to monthly payments, similar to those now made by lessees, with a “balloon” payment at the end of the loan period.
Topics New York
Was this article valuable?
Here are more articles you may enjoy.
What Analysts Are Saying About the 2026 P/C Insurance Market 
Insurance Issue Leaves Some Players Off World Baseball Classic Rosters 
Trump Demands $1 Billion From Harvard as Prolonged Standoff Appears to Deepen 
How One Fla. Insurance Agent Allegedly Used Another’s License to Swipe Commissions 
