Dealer Loaner Cars Are Rentals, Getting Dealership Off the Hook

A car dealership and service center in North Carolina is free of a lawsuit alleging that a vehicle it owned was involved in a car accident in Florida, after the Eleventh Circuit ruled that a vehicle provided to a customer while their car is being serviced is a rental under federal law.

Randy Marion Chevrolet Buick Cadillac LLC lets customers use dealership-owned vehicles while their cars are being serviced. Samuel Pope brought then-fiancee Rebecca Lowthorp’s car to Randy Marion for service a day before their wedding. Randy Marion provided a vehicle for use in the meantime.

A few days later, ...