Car leasing is a very popular option for New Yorkers. Did you know that as many as one out of every four cars sold in New York state is leased? There are many advantages to leasing a vehicle. Many people like to do so:

* They are able to acquire new vehicles at a lower cost;

* Basically everything is covered under the manufacturer's warranty during the duration of the lease;

* They like having a shorter-term commitment;

* There is more flexibility when leasing;

* A lease can be catered to your driving needs;

* They like driving a nicer car and paying lower monthly payments; and,

* The cars are new and often safer and more environmentally friendly than older vehicles.

But leasing a vehicle may come to an end here in New York unless the vicarious liability law is reformed.

Vicarious liability can be defined as such: one person is liable for the negligent actions of another person, even though the first person was not directly responsible for the injury. Vicarious liability laws provide that the lessor, as legal "owner" of a vehicle, is legally liable in the event of a lawsuit against a driver/lessee who has an accident. The law applies to anyone driving in New York, so leasing a vehicle from another state would not avoid the liability issue. This has resulted in some very large verdicts and settlements against the finance companies who lease vehicles.

Discussions are under way with manufacturers' captive finance companies regarding the future of leasing programs in New York. These companies may cease leasing activities in the state if this law, which was established in New York nearly 80 years ago, remains in effect. Bills have been introduced in both houses that would eliminate liability for leasing companies, as many other states do, in recognition of the fact that the leasing company has no control of either the vehicle or the driver of the vehicle. In fact, the only connection the leasing company has to the vehicle is that the company's name appears on the vehicle title because the company, technically, is an owner.

So far, GMAC has formally announced that as of May 1, 2003 unless new laws are enacted in New York, it will cease leasing vehicles here, in Connecticut and in Rhode Island. I am sure other manufacturers will follow suit. We cannot let that happen. Too many people rely on leasing a vehicle for their livelihood. It would hurt our economy if the vicarious liability law is not reformed.