FARMINGTON HILLS, Mich.--Chrysler Financial announced Thursday that it will discontinue leasing vehicles in New York starting May 1. Chrysler is the last of the Big Three automakers to leave the leasing market in that state.

"The current legislative environment in New York has forced us to exit based on the significant financial exposure we risk if we continue to offer leasing in this market," explained Klaus Entenmann, vice president of Chrysler Financial. "Chrysler Financial has made every effort, along with the New York State Automotive Dealers Association and the Alliance of Automotive Manufacturers, to encourage changing legislation in the state of New York to no avail," said Entenmann.

The automaker said it might re-enter the leasing market if it foresees a possible reform in legislation.

Porsche Cars North America's financing arm also left the leasing market effective March 1, reported Newsday.com. Others who have discontinued leasing include General Motors, Ford Motor Co., Hyundai, Kia and several banks and finance companies.

As an alternative to leasing, several automakers started balloon-note loans. With these, customers make low monthly payments and--at the term's end--make a large final payment or sell back the car to the creditor. The main difference is that the customer holds vehicle title.

The New York Senate voted last year to repeal the law, but it was opposed in the Assembly. The Senate will consider similar legislation again this year.