Special disclosure obligations applicable to sale of cars apply also to leasing transactions

A person entered into a long term leasing transaction of a used car from a company dealing with such business and later discovered that the car has certain issues that were not disclosed to him.

The Court held that the claimant is to be compensated for his damage and held that a leasing transaction of a car is essentially the same as a purchase transaction and there is no place to make an artificial segregation between them. Thus, a leasing transaction will be subject to section 4 of the Used Car Sale Law (Right to Data and Due Diligence), 2008, obligating the seller or lessor to disclose data as to the status of the car in addition to the general good faith in negotiations applicable to any transaction.