Mercedes-Benz Credit Decreases N.Y. Acquisition Fees in Anticipation of New Law Involving Vicarious Liability

August 7, 2005

Mercedes-Benz Credit announced recently that the company will reduce its acquisition fee for vehicles leased in the state of New York.

Effective immediately, Mercedes-Benz Credit’s acquisition fee for Mercedes-Benz vehicles leased in New York will be reduced to match the fee charged in the other 49 states. The company is taking this action as a result of the U.S. Senate’s and House of Representatives’ decisions to pass the Graves Amendment as part of the federal transportation bill that is awaiting the signature of President Bush.

The higher acquisition fee in New York was necessary to help mitigate the exposure to New York’s lessor vicarious liability law and to help offset the high insurance premiums resulting from this law.

Leasing companies, under New York’s law, are held responsible for personal injury and property damage caused by the driver of a leased vehicle, regardless of the fact that the leasing company has absolutely no control over the use or operation of the vehicle. Under the proposed new federal law, lessor vicarious liability would be eliminated.

“We are pleased that both houses of Congress passed the Graves Amendment and we anticipate that President Bush will sign the bill into law as early as next (this) week,” said Juergen Rochert, vice president of Mercedes-Benz Credit. “Now our dealers can offer our customers in New York the best luxury vehicles in the world at even more attractive payments.”

Was this article valuable?

Here are more articles you may enjoy.