No more leases...for GM too???

[Lichtronamo]

Originally Posted by K Dawg ONE

Most imports are at the 4.9%-6.9% lease rates already.....

And, the money is going to their own coffers.

Cutting leasing is an indicator of growing concern about a GM (and Chrysler) default as GMAC sells the debt for these leases backed by the vehicle as collateral. The continuing deterioration of GM's resale values, now hitting trucks and SUVs, makes GMAC a risky investment with the growing potential for the bottom to fall out.

This will hurt GM's ability to sell trucks, SUVs as well as "luxury" products like Cadillac and Saab.

[K Dawg ONE]

Originally Posted by Squashman

Where is everyone getting that GM is out of the leasing business? There was an IDL last week but GM just said they would not have aggressive leases but did not state they were getting out of the business.

There was an IDL here in Canada this morning....

[CanadianBrit]

update:

G8 to go to 2.25%, expect similar for VIBE (09 models). Most PB go 72months 0%. Enclave 1.9%, Sierra 0.9%; would expect the Acadia to remain 0%. Awaiting news for Cadillac. However, I can see the CTS going 1.9% as well as most others.

[K Dawg ONE]

Originally Posted by zete

If they offer 6 year leases they should tie it to a 6 year warranty. A lot of folks I know lease 3 or 4 years depending on the length of the warranty as they don't want to deal with out-of-warranty work on a car.

If GM did tie a 6 year warranty to the 72 month lease things would be quite interesting. I wouldn't mind that structure as I prefer having newer cars with a warranty -- I hate dealing with even regular maintenance. The fewer trips to the dealer the better. It's why I love the synthetic oil in most GM cars today and the fact I change oil about once a year, whenever the car tells me to .

The $2k loyalty is something that Buickman recommended. I think it's a long time coming. And a 6 year lease on a Corvette sounds like a good deal, especially at 1.9%.

Actually, Ive been thinking about this alot and its not a bad idear.
We already have a 5yr/160 000km (5/100mile) warranty so bump it a year to a 6/160 (6/100) warranty to match the 0%/72 finance rates. As of today, most 72 mo purchases are the same payment as a 48mo lease. Most people lease to stay in warranty. If you bumpe the warranty to match the term, basically, your doing a 6 year lease at 0% and when you 'return' (ie, go to trade in your vehicle) in 6 years, you will actually have some equity to trade in, which, if current trends remain the same, will help offset the high rates for a lease so that yoiu can finance again...

[montrealvue]

Originally Posted by zete

What GM should have done is simply price the car here in US dollars, allowing for a fixed exchange per month. Regardless of what the dollar does in the future, GM gets the US price. Sure, it means pricing in Canada goes up and down but it'll track the exchange rate. We're used to dealing with that as Canadians anyway, so this would show GM cared and also that the price was reflective of the strength/weakness of the dollar and not something else.

Oh that would have been TOO easy..... I was in the US last week (Northern Vermont) and noticed most midsize GM vehicles were around $3000 less than in Canada. Why this persists over a year later is beyond me. My company deals in both Canadian dollars and US and does not have differences in prices, why should GM now?

[K Dawg ONE]

Originally Posted by CanadianBrit

update:

G8 to go to 2.25%, expect similar for VIBE (09 models). Most PB go 72months 0%. Enclave 1.9%, Sierra 0.9%; would expect the Acadia to remain 0%. Awaiting news for Cadillac. However, I can see the CTS going 1.9% as well as most others.

Enclave is currently 0.9%/60, Sierra is 0%/48 and 0.9%/60, and Acadia 0%.
Vibe going from 5.4% to 2.25% is great news as is the G8 going from 6.4% to 2.25%!!!

[Cortazzo]

Originally Posted by obriend

We started leasing a Chrysler minivan in March. The draw of leasing (for me anyway) was that I wouldn't be stuck with a car that 1) we wouldn't like (this is our first minivan - so far we love it but you never know) 2) would require out-of-warranty repairs (esp being a Chrysler) and 3) in 3 years, if gas is $6.00/gal, I'm not stuck with a relatively fuel-inefficient car - like trying to get rid of an SUV today.

That's exactly when GMAC and Chrysler don't want to lease, they are the ones that get stuck with the car if you don't.

[shelby]

As a Business Manager at a Chrysler store in Canada I can probably offer a different perspective than most on losing leasing. Our store had one of the highest lease penetration rates on new vehicles in western Canada pre-June. In June Chrysler went to non-subvented (11.79%) rates on all vehicles other than Ram 1500s. Then on July 1st non-subvented rates went to 13.79%, Ram 1500's lost subvented rates, and residual values have dropped anywhere from 5-15% of MSRP accross the board.

It was a bit of a shock but we've handled it surprisingly well... most customers are focussed mainly on payment anyways, so whereas in the past our salespeople would push a short-term lease in order to have customers flip cars more often, now we have to go to a longer term finance contract or downsell the vehicle. It might end up slowing down the trade-in cycle eventually, but where I live a lot of people ended up buying out those short-term leases and keeping the vehicle anyways.

The change will definitely hurt Chrysler in terms of short-term new vehicle sales volume though, as the absence of leasing on new vehicles has made financing a relatively new used vehicle a lot more attractive.

[zete]

Originally Posted by fredi91

sorry...when i said 72 is the new lease...i should have clarified that the 72 is a finance contract (not a lease).

each of the car lines will have a lease loyalty creadit available to those that are currently in a lease and decide to get into a finance contract.

coupled with upto $3,000 in finance cash on top of the 0% and loyalty cash, GM is really trying to 'convince' people that going back to traditional financing is OK to do.

i find it hard to beleive that Cerebus won't be making the same decisions south of the border soon enough; espeically knowing that thry made the announcement for Chrysler in the good ol' USofA

So literally no leasing from GM directly. Hmm. Odd. Buy it or go to a leasing firm or bank. Again, hmm.

We'll see how that all pans out. If a consumer can get a lease from the dealer they won't care who underwrites it. Now, if lease prices are insane then GM may lose a lot of customers.

I still stand by my belief that having a warranty that matches any financing is the smart way to go.

[zete]

Originally Posted by K Dawg ONE

Actually, Ive been thinking about this alot and its not a bad idear.
We already have a 5yr/160 000km (5/100mile) warranty so bump it a year to a 6/160 (6/100) warranty to match the 0%/72 finance rates. As of today, most 72 mo purchases are the same payment as a 48mo lease. Most people lease to stay in warranty. If you bumpe the warranty to match the term, basically, your doing a 6 year lease at 0% and when you 'return' (ie, go to trade in your vehicle) in 6 years, you will actually have some equity to trade in, which, if current trends remain the same, will help offset the high rates for a lease so that yoiu can finance again...

Exactly. It's the warranty = financing period that most people look at. I know I do. If I had 6 & 6 then I'd opt for that, especially as I'd have the car at the end to either keep or trade.

I've bought out one lease in the past, the first gen Intrepid. The lease buyout was LESS than the street value. So we bought it, drove it another 3 years and then sold it for the lease buyout value. It was a great deal .

If that offer for the 'vette stands, I'll use it to buy my vette in a few years. I intend to buy one, anyway.

[logansowner]

So basically what they are admitting to is that their used cars are so worthless that they can't afford to be buying them back. Nice.

[ChevyOptra5]

As I am one who does lease....we'll see what happens, if there are any good loyalty incentives. If not, I can tell you it will be unlikely I'll get a GM then, and I've always been a GM guy but, with Mazda dropping the price of the '09 Mazda3 by $2000, I know the direction I'll head.

[fredi91]

we're supposed to see all the details tomorrow morning. this should give us a better idea on where each of the finance rates will end up, as well as stackable finance incentives and finally for the lease loyalty incentives.
it's 2 pm here so that's 5 in Oshawa so i doubt we'll see anything more today.

[prototype66]

I'll believe it when I see it.

[fredi91]

Originally Posted by prototype66

I'll believe it when I see it.

what don't you believe??? the more details coming tomorrow or that GMAC is out of the leasing in Canada?