GM to get out of the lease game in Canada

[montrealvue]

Originally Posted by neshapop

Car lease is just another scam to get people into a new purchase with barely enough money to have a new car (on the top of the pile of other loans+mortgage) and another tool for car makers to blow their sales reports.

And also great way to get the money from people how don't get the math right. If you cannot afford a new car - buy a used one!

Hardly. If you use your vehicle for business (like me), leasing makes alot of sense. I don't have time to spend at garages and dealer service dept's in year #4 after the warranty is up and the car starts to fall apart. In years 4 and 5, from my experience maintenence and repairs go through the roof on GM vehicles. I have had leased and financed GM vehicles and would only consider a lease now. If I can't lease another I will lease from another brand.

[neshapop]

Originally Posted by montrealvue

Hardly. If you use your vehicle for business (like me), leasing makes alot of sense. I don't have time to spend at garages and dealer service dept's in year #4 after the warranty is up and the car starts to fall apart. In years 4 and 5, from my experience maintenence and repairs go through the roof on GM vehicles. I have had leased and financed GM vehicles and would only consider a lease now. If I can't lease another I will lease from another brand.

For business use only yes, when you can claim the expenses and use it for soft money laundering. The point of this new move is to get away from defaults on car leases and loss of money which is huge majority for personal use.

[dindak]

My wife has leased her Montana vans from GM, not sure what will happen when the lease is up in a few years. Not good news! Don't want to have to leave GM.

[smokyn454]

Originally Posted by neshapop

Car lease is just another scam to get people into a new purchase with barely enough money to have a new car (on the top of the pile of other loans+mortgage) and another tool for car makers to blow their sales reports.

And also great way to get the money from people how don't get the math right. If you cannot afford a new car - buy a used one!

How exactly is it a scam? I am curious to know.

Also to go against what you say, why buy a used car when you can buy a new one? Last time I checked the math worked out just fine.

Why buy a used car that is 3-4 years old and has 40,000 miles on it for $300 a month when I can buy a new car with 0 miles and a full warranty for $300 a month. Plus I don't have to worry about depreciation or resale or being upside down on a loan. After the lease is up, I just turn in the keys.

The only way I know that a lease can hurt you, or be a scam as you put it, is if you go over your alloted miles or you beat the living crap out of it.

[tirediron]

If that happens here = Not. Good.

80% of new cars sales in South Eastern Michigan are leases.

[SSJ]

I was already leaning toward a Mazda 6 because I want a manual Transmission, and if I can't lease a GM then here I come Mazda.

[montrealvue]

Bingo, no GM lease similar to what I am paying on my current lease and my next lease will be a VW or Subaru! I am so sick of all the negative with GM that I can honestly say it doesn't upset me at all!

[vcs2600]

Leases in general aren't a scam.

But I have heard of dealers doing a bait-and-switch on customers, agreeing on a monthly payment and then later revealing it's a lease or a "smart buy".

Although on the other hand, I've read that manufacturers often incentive leases more because it looks better than putting a few grand on the hood.

[SierraGS]

Originally Posted by Buickman

since I personally do 80% of my business as leases, I hope it's not true but I have it from good sources...no more GMAC leases. you'll hear about it Monday.

Can you clarify if it is GMAC that is getting out of leasing or GM?

I can see GMAC getting out to reduce exposure and cut costs by doing away with leasing division/staff.

Can GM 'not lease' vehicles if the leases are carried by a local bank or other financial institution?

I have leased GM products using a third party.

Business customers do alot of leasing for tax purposes so I can see it hurting GM's sales overall.

Overall this is not good news.

[Jesda]

Stop abusing italics.

[Carver]

Originally Posted by PhishPhood

So buyers have lost their Home Equity ATM as a source of funds.
Cheapo leases are drying up or are gone entirely.
Buyers are going to have to show impeccable credit... with, perhaps
A substantial Down Payment being required.

Most new vehicles being sold are autos.

This sounds like the 60's all over again.

Collectively, this new economic reality may be one of the best things to happen to Americans in quite a while. There were too many easy credit/easy purchase schemes. Now, people will have to save.

[DenCo]

Originally Posted by Carver

Collectively, this new economic reality may be one of the best things to happen to Americans in quite a while. There were too many easy credit/easy purchase schemes. Now, people will have to save.

What happens to those with crappy, low paying jobs who can't afford a damn thing? Too bad! You lose at life! GAME OVER. Continues Left: 0.

[Knawth]

It's true. GMAC has released new rates for Financing as well, effective today, Jul 29/08 - 0% on almost everything for up to 72 months. And leasing is gone. Officially on the 1st of August.

Some of 'us' suspect that another financial institute may offer a solution to the lease woes. Keep in mind that in Canada, 40% of people lease, & in the US it's only 20%.

[PA Dweller]

Originally Posted by Carver

Collectively, this new economic reality may be one of the best things to happen to Americans in quite a while. There were too many easy credit/easy purchase schemes. Now, people will have to save.

That's a good thing, too many people live beyond their means. If you really want something you save for it.

[Carver]

Originally Posted by DenCo

What happens to those with crappy, low paying jobs who can't afford a damn thing? Too bad! You lose at life! GAME OVER. Continues Left: 0.

Okay, some credit is useful, and necessary for the economy to function. But the credit markets had become far too lax. 0% down option ARM mortgages, where people payed only PART of the interest each month were sure to lead to disaster.

And now the taxpayers, including renters and people who bought houses they could afford, are expected to clean up the mess created by easy credit.

With these leases: if someone makes $35k they shouldn't be leasing a $35k+ vehicle. Live within your means, folks.