American Honda Finance Corporation (AHFC), a wholly owned subsidiary of American Honda Motor Co., Inc., today announced that AHFC and its affiliates will reduce its lease acquisition fee in New York State to its nation-wide standard of $595 effective August 19, 2005. The move is prompted by legislation expected to be signed into law by President Bush today.
"This new law benefits consumers and manufacturers alike by overriding the antiquated Vicarious Liability statue that existed in New York," said Steve Smith, senior vice president of American Honda Finance Corp. "AHFC will be able to offer even more attractive leases to Honda and Acura customers in New York."
The antiquated New York Vicarious Liability law imposed unlimited liability on leasing companies for the actions of their lessees. In place since the 1920s and abolished in other states, Vicarious Liability laws have long outlived their original purpose and exposed leasing companies to unlimited damages when the driver of the leased vehicle was negligent in an auto accident.
AHFC withdrew from the leasing market in New York on July 31, 2003, and reentered on March 24, 2004 with substantially higher lease acquisition fees to help partially offset lawsuit costs.
"Our number one priority is customer satisfaction and this helps us dramatically enhance our lease programs," continued Smith.