LAS VEGAS -- Several factors point to leasing making a big comeback in the next few years. Leasing's future was a hot topic at the Auto Finance Summit last week.

Although leasing business has been declining for several years, this trend will reverse, said Steve Lambert, president and CEO of Nissan Motor Acceptance Corp.

Earlier this year, automakers started offering special lease deals again. Subsidized lease deals were common in the late 90s but dwindled with the rise in incentives.

Because leasing is more profitable for finance companies, the captives may pressure automakers to offer more attractive lease deals, said Lambert.

One major roadblock to leasing, at least in New York, is the unlimited vicarious liability law. The antiquated law holds finance companies liable when the vehicles they hold leases on are in an accident. New York is the only state where unlimited vicarious liability still applies and the law has driven many auto lenders out of the state's leasing market.

But Michael Benoit, a partner with Hudson Cook LLP, said New York should see a change in the law in 2005. Sources say that Gov. George Pataki is for a solution, and there's much talk behind the scenes about getting rid of vicarious liability, said Benoit.

Despite the rosy future of auto leasing, some finance companies still consider it a risk.

"I don't think you’re going to see Bank of America back in the leasing market for quite some time," said Ken Clark of Bank of America Auto Finance. Clark is the senior vice president of national accounts and channel development.

"Leasing is an art, not a science," said Tom Nadeau, managing director at Sovereign Bank. Sovereign Bank is a large indirect auto lender in the Northeast.