American Honda Finance Corp. To Resume Leasing In New York

TORRANCE, Calif., March 24 -- American Honda Finance Corporation (AHFC), a wholly owned subsidiary of American Honda Motor Co., Inc., today announced that AHFC and its affiliates will resume vehicle leasing in New York state effective today. The move is in direct response to consumer desire for the ability to lease Honda and Acura vehicles in New York.

"The competitive situation in New York compels us to re-enter the consumer leasing market," said Steve Smith, senior vice president of American Honda Finance Corp. "However, it is more important than ever that the legislature act to repeal the Vicarious Liability statute."

An antiquated Vicarious Liability law imposes unlimited liability on leasing companies for the actions of their lessees. To help partially offset damages from vicarious liability lawsuits, the lease factor used to determine monthly payments will be raised resulting in an added premium of approximately $500 over the life of the lease.

Honda withdrew from the leasing market in New York on July 31, 2003, and will do so again if liabilities escalate. New York is currently the only state that imposes unlimited liability on leasing companies for the acts of their lessees.

Last year, the New York Senate voted to repeal the statute. The repeal legislation will need to be considered again in the Senate before proceeding to the State Assembly.

"We will monitor the situation on a daily basis and may choose to withdraw from New York again if our liabilities escalate" Smith stated. "The most pro- consumer step the legislature can take is to repeal lessor liability as soon as possible."