GMAC Related News on Leasing, Financing

[Sinner]

Originally Posted by fp115

GM does not refuse to lower prices. It is simply impossible to do so, because the market does not allow it. If GM lowers the prices and competitors don't, GM loses money and value. All Canadian products are more expensive than US ones and it is not only GM.

Tell that to Toyota, Dodge, and all the others who have already dropped their prices. While they might not be dollar for dollar, they are damn close unlike GM.

[PAULSTS1]

I think Ms. Mallino is a talking bobblehead and doesn't know who she works for! GMAC had several sub-prime lenders in the Real Estate Market doing business under subsidiary names. This is why GMAC's overall losses are so high, and why the Federal Government may sue GMAC, for Fraud and misleading lending practices. If Ms.Mallino still has a job, after the losses currently being written off, without leasing, and with the proposed much higher lending requirements, she can look forward to a big pay cut, say to $10 per hour! The car business is going south, real quick!

[K-1]

Originally Posted by PAULSTS1

I think Ms. Mallino is a talking bobblehead and doesn't know who she works for! GMAC had several sub-prime lenders in the Real Estate Market doing business under subsidiary names. This is why GMAC's overall losses are so high, and why the Federal Government may sue GMAC, for Fraud and misleading lending practices. If Ms.Mallino still has a job, after the losses currently being written off, without leasing, and with the proposed much higher lending requirements, she can look forward to a big pay cut, say to $10 per hour! The car business is going south, real quick!

She was talking about the auto side of the lending business. Obviously, ResCap was hit pretty hard with sub-prime defaults, but that has nothing to do with auto loans/leases.

[fp115]

Originally Posted by Sinner

Tell that to Toyota, Dodge, and all the others who have already dropped their prices. While they might not be dollar for dollar, they are damn close unlike GM.

Uhhh thats why their cars are $2-3k more than GM products? No one dropped their prices and won't be able to for at least another year. For now all companies are doing market adjustments rebates. Nothing more or less. The Honda Civic for example is $2k more in Canada than the US, but the Cobalt is $100 more. The Toyota Camry is $5k more in Canada than the US. Oh I can go on for quite a while.

[fp115]

Originally Posted by Buickman

"impossible"...ridiculous statement

"market does not allow it"...irrational claim

"all Canadian products are more expensive"...seriously doubt it.

just more examples of foolish, off the cuff, remarks from someone more silly than sensible.

Live in Canada? Buy a consumer electronic in Canada instead of the US and even that will cost you more. Seriously you have no idea whats going on around you, do you?

[dindak]

Originally Posted by fp115

GM does not refuse to lower prices. It is simply impossible to do so, because the market does not allow it. If GM lowers the prices and competitors don't, GM loses money and value. All Canadian products are more expensive than US ones and it is not only GM.

Not impossible, GM is just stobborn. Why is an Impala SS $5000 more in Canada? Why is an Aura XR $4000 more in Canada? No reason other than GM refuses to budge. Other manufacurers have adjusted prices much more, some new Chrysler vehicles have the same MSRP as they do in the U.S. There is no excuse. Resales are getting killed whether GM cuts prices or not. They would sell a hell of a lot more new if they did cut, all they are doing is forcing people like me to buy imported slightly used cars which is what I am likely to do in the next few weeks.

[dindak]

Originally Posted by fp115

Live in Canada? Buy a consumer electronic in Canada instead of the US and even that will cost you more. Seriously you have no idea whats going on around you, do you?

Hey, I am ok if something cost 4 or 5% more but not 20% more.

[Buickman]

Originally Posted by fp115

Live in Canada? Buy a consumer electronic in Canada instead of the US and even that will cost you more. Seriously you have no idea whats going on around you, do you?

medicine is cheaper, as is lumber, web and email hosting, and many other things.

actually I'm quite aware of what's happening and that includes Red Ink Rick purposely driving GM into the ground to eliminate wages, health care, pensions, employees, dealers, etc...no one could possibly be so stupid as to operate in such an incompetent manner.

[tholland]

Originally Posted by dindak

Problem is, GM REFUSES to lower their prices in Canada in spite of a Canadian dollar that is virtually at par with the U$ and now used US cars are flooding the Canadian market and KILLING resales.

Perfect example... I looked at a 1 year old Aura XR with 6000 miles from the U.S. listed for C$19,950, new these are over $32K.

Absolutely true... and lease buyouts are calculated from those inflated MSRPs.

[Buickman]

dealer letter this AM from LaNeve...GMAC USA to continue incentivized leasing (with some adjustments).

[fp115]

Originally Posted by dindak

Not impossible, GM is just stobborn. Why is an Impala SS $5000 more in Canada? Why is an Aura XR $4000 more in Canada? No reason other than GM refuses to budge. Other manufacurers have adjusted prices much more, some new Chrysler vehicles have the same MSRP as they do in the U.S. There is no excuse. Resales are getting killed whether GM cuts prices or not. They would sell a hell of a lot more new if they did cut, all they are doing is forcing people like me to buy imported slightly used cars which is what I am likely to do in the next few weeks.

Have you looked around at other companies and see their difference in price? Its the same. GM amongst other manufacturers cannot reduce prices drastically in order to match US pricing for several reasons.

• A reduction in price will cause products to be under valued in the market, competitors are not following.
• Will cause outrage in current customers, the value of their vehicle will drop significantly.
• The car company will assume a loss, especially if the vehicle is leased.
• Average Canadian income is much higher than the US.

No car company is matching MSRP on their US counterparts. All manufacturers, such as Chrysler as you mentioned offer "US pricing" discounts. The PT Cruiser for example is $2.5k more in Canada than it is in the US. Nearly all automotive companies are losing money in the Canadian market due to the high Canadian dollar. It is now illegal to purchase vehicles from the US and import them into Canada, doing so will get the dealership fined and closed down.

To find all pricing adjustments for GM vehicles:
http://www.gm.ca/gm/english/corporat...view?adv=78131

Originally Posted by Buickman

medicine is cheaper, as is lumber, web and email hosting, and many other things.

actually I'm quite aware of what's happening and that includes Red Ink Rick purposely driving GM into the ground to eliminate wages, health care, pensions, employees, dealers, etc...no one could possibly be so stupid as to operate in such an incompetent manner.

Great so now you listed Canada's forts. Medicine and lumber has ALWAYS been cheaper in Canada, even before our economy became this strong. Lumber is one of our greatest natural resources and we have free healthcare, does it surprise you that it is cheaper in Canada? Web and Email hosting has nothing to do with the debate, they are services, not products. I run a datafarm of 13 servers, which used to run out of Toronto but now runs out of Las Vegas. It cost me $15k less a month than managing it in Toronto. It simply depends on who you are with and what the terms are. A service is a service and has nothing to do with Canadian or US markets.

You really aren't helping your case with all the incompetent posts you've done thus far. This one really takes the cake.

[Buickman]

LaNeve letter this AM...GMAC USA to continue incentivized leasing (with adjustments).

[2002 Caddy]

Originally Posted by fp115

The car company will assume a loss, especially if the vehicle is leased.

DING DING DING

THAT is the #1 reason ALL car manufactures still price there cars higher North of the boarder... They have a huge inventory of leased vehicles... If they drop the price of new vehicles by 30% to make up for the now strong Canadian Dollar they will take a huge hit on their lease returns. If the Canadian dollar stays at or near par for 3 or 4 years, then gradually you will see Canadian prices come into line with the US prices.

This time, this has nothing to do with bad management...

[Buickman]

Originally Posted by 2002 Caddy

DING DING DING

THAT is the #1 reason ALL car manufactures still price there cars higher North of the boarder... They have a huge inventory of leased vehicles... If they drop the price of new vehicles by 30% to make up for the now strong Canadian Dollar they will take a huge hit on their lease returns. If the Canadian dollar stays at or near par for 3 or 4 years, then gradually you will see Canadian prices come into line with the US prices.

This time, this has nothing to do with bad management...

WELL IT KIND OF DOES. WITH BETTER MARKETING OUR PRODUCTS WOULD HOLD MUCH BETTER RESALE. AS IT IS, OUR MERCHANDISING IS HORRIBLE AND THAT EFFECTS RESIDUALS TREMENDOUSLY.

[Buickman]

Originally Posted by fp115

Have you looked around at other companies and see their difference in price? Its the same. GM amongst other manufacturers cannot reduce prices drastically in order to match US pricing for several reasons.

• A reduction in price will cause products to be under valued in the market, competitors are not following.
• Will cause outrage in current customers, the value of their vehicle will drop significantly.
• The car company will assume a loss, especially if the vehicle is leased.
• Average Canadian income is much higher than the US.

No car company is matching MSRP on their US counterparts. All manufacturers, such as Chrysler as you mentioned offer "US pricing" discounts. The PT Cruiser for example is $2.5k more in Canada than it is in the US. Nearly all automotive companies are losing money in the Canadian market due to the high Canadian dollar. It is now illegal to purchase vehicles from the US and import them into Canada, doing so will get the dealership fined and closed down.

To find all pricing adjustments for GM vehicles:
http://www.gm.ca/gm/english/corporat...view?adv=78131



Great so now you listed Canada's forts. Medicine and lumber has ALWAYS been cheaper in Canada, even before our economy became this strong. Lumber is one of our greatest natural resources and we have free healthcare, does it surprise you that it is cheaper in Canada? Web and Email hosting has nothing to do with the debate, they are services, not products. I run a datafarm of 13 servers, which used to run out of Toronto but now runs out of Las Vegas. It cost me $15k less a month than managing it in Toronto. It simply depends on who you are with and what the terms are. A service is a service and has nothing to do with Canadian or US markets.

You really aren't helping your case with all the incompetent posts you've done thus far. This one really takes the cake.

you said "everything is more expensive". you have a better backstroke than Mark Spitz.

some free advice...stay in the shallow end kid.