New National Leasing Laws Bite Mazda..13 States Sue

11/01/96

A Mazda corporate ad campaign stating you can lease a new Mazda for "zero down" came under fire from 13 states who filed a coordinated legal action against the Japanese car maker assering that it was false advertising.In fact the leases required about $900 to obtain. There was a $450 acquisition fee, a security deposit and first months lease payment.

The lawsuits filed individually under each states laws is the first major step in masive investigation of auto leasing practices.About 28% of new car transactions are leases. Mazda said they are concerned over the legal action and is making every effort to settle it amicably. The states involved are California, Arizona, Connecticut, Minnesota, Washington, Missouri, Nevada, Ohio, Massachusetts, Idaho, Illinois, Iowa and Maryland.

Bill Maloney -- The Auto Channel