COSTA MESA

The Lease Outlet has filed a lawsuit challenging a City Council decision to prohibit the display of cars at its Newport Boulevard business. Council members have described the Lease Outlet as a “used car lot” and said it belonged on Harbor Boulevard with all the other car sales businesses in the city. But R. Lee Andersen, the firm’s attorney, said the council’s denial of a conditional-use permit was unfair. He said the business has been mischaracterized and that 95% of its transactions involve leasing rather than selling cars. Most, if not all, of the cars on the site are taken on consignment as a service to customers who need to get rid of old cars, Andersen said. No court date has been set to hear the suit.