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

[2005 Equinox LS]

If I cant lease next time it may force me to buy used. Or maybe an Aveo with the 72 month payment plan. I dont like the Cobalt enough to want it.

[redgtconv]

I am currently near the end of my fourth consecutive GMAC lease. I have 2 payments left. So last week I called GMAC to see if they have the pull ahead program. They told me that they will make my last 2 payments if I lease another GM car, but I would also get a $2000- bonus if I purchased my next GM car. They are obviously trying to get customers to buy their next vehicles, but as of last week, no mention of discontinuing leases, at least in the US.

[SUPERBADD75]

Originally Posted by Ambalanche

This will have the effect of just another hurdle to selling cars in the US. I know people who ONLY lease.

someone above said the same thing, but there will be leases. you'll either sell a car to a leasing company, or you'll finance the lease through a bank other than GMAC. not that big a deal. i can't see this happening in the U.S. though, leases are huge here.

[tholland]

Originally Posted by zete

I think it's a combination of a bunch of 2004, 2005 leases coming due which have the resale value under water and all the trucks having much lower resale than originally thought.

Remember, the Canadian dollar was in the 65 - 75 cent range back then (2003 - 2005) and is now $1+ now. That means what was worth $1 then is worth about $0.65 - 75 cents now, a much faster change in the value of the dollar than anyone expected. Thus a car with a residual at time of lease signing of $30k is now worth about $20 - 25k. If it's a truck, it's worth even less. Not a good spot to be in.

Furthermore, if you drop the price of the new models you further deflate the prices of the used ones sitting on dealer lots. Again, not a good thing. It's actually a pickle GM is in, but not just GM, everyone. If you bought a Camry with a $15k residual after 4 years it's only going to be worth about $12k now. Toyota may eat some of that price and help their dealers, but not for long. Everyone will end up having to come up with a solution, not just GM. It's just that GM is in worse shape than Toyota.

Good explanation. By that logic it seems that the risk on new leases should be less with the dollar near par... if the $US recovers, as I suspect it will over the next couple of years, GM could experience the opposite effect. However, the problem with that scenario is the inflated MSRP's that we currently have in Canada... which is built in risk for leases to begin with.

[K Dawg ONE]

Originally Posted by SUPERBADD75

someone above said the same thing, but there will be leases. you'll either sell a car to a leasing company, or you'll finance the lease through a bank other than GMAC. not that big a deal. i can't see this happening in the U.S. though, leases are huge here.

It IS a big deal though. At a 10% interest rate on a lease, the payment becomes nearly $100 more a month than to BUY the vehicle. 3rd party lenders do not lease cars at 0-3% rates...


...and by the numbers, leaseing is actually MORE of GMs business in Canada than it is in the US.

[CanadianBrit]

OK so here it is, the 09 Rates and residuals effective from today:

09 VIBE (both engines) 0% 60, 1.9% 72
09 G8 (as reported) 2.25% upto 72
09 Malibu (all variants) 0.9 for 72
09 CTS 1.95% for 48; 4.95% 60; 8.4% 72 ($5000 finance cash)
09 Aveo/Wave G3 (manual only) 2.9% upto 72
09 Corvette and Z06 2.9% upto 72
09 Sierra/Silverado 0% upto 48, 0.9% 60 and 1.9% 72

So many more but those are biggest changes

[nferr]

Originally Posted by big swede

I'm not saying there are no good reasons for leasing because you give a perfectly good reason as to why it could be a benefit by reducing your risks on a potential risky vehicle. I'm saying that people tend to think in terms of what they can afford on a monthly basis and it often times results in them paying much more for the exact same thing. That one time $100 dollar phone example turns into a $360 dollar phone if they keep it 3 years. You multiply that by several items and you can see why so many people have such embarrasing credit.

Your example is very simplistic. A lot of leases have very low payments. Use your GM card and other incentives and you were leasing a nice car with zero down for a couple of hundred a month for three years. Then turn it in when you're done. If you purchase the vehicle you were at higher payments, then with GM's crappy resale value you were upside down for years on the principal balance of the vehicle. A LOT of people (myself included) prefer to have a new vehicle every few years. That's almost impossible if you purchase.

That said I did purchase my 07 CTS, got $10,000 off MSRP and 0% for 72 months. As indicated earlier in this thread the payment was decent. But I'm sure GM is taking a hammering on that deal also, same as they are on leases. I also purchased my 06 Malibu at 0% for 60 months. First new cars I've purchased in quite a few years after about 20 years of leasing.

[jnak00]

Originally Posted by CanadianBrit

OK so here it is, the 09 Rates and residuals effective from today:

09 VIBE (both engines) 0% 60, 1.9% 72
09 G8 (as reported) 2.25% upto 72
09 Malibu (all variants) 0.9 for 72
09 CTS 1.95% for 48; 4.95% 60; 8.4% 72 ($5000 finance cash)
09 Aveo/Wave G3 (manual only) 2.9% upto 72
09 Corvette and Z06 2.9% upto 72
09 Sierra/Silverado 0% upto 48, 0.9% 60 and 1.9% 72

So many more but those are biggest changes

So if I go to my local dealer today I can get these rates? That G8 suddenly looks a lot more attractive!

[K Dawg ONE]

Originally Posted by jnak00

So if I go to my local dealer today I can get these rates? That G8 suddenly looks a lot more attractive!

If you are in Canada, yes.
If your in Ontario, send me an email at kris.creed@gusrevenberg.com
I have 20 G8s in stock and would be happy to be given the chance to earn your business

BTW, Wave in Canada is now G3 Wave for 2009.
Also, expect to see a stick no a/c G3 for $9995
And a stick no a/c G5 for $12995

[mrboom1387]

Have been notified that Wells Fargo and Chase are both ending their auto leasing programs. effective August 1.

[Team Jigger]

Let's clear the air..Lease deals will be fewer, BUT how about ZERO percent on Corvettes? come and get it!

[ChevyOptra5]

Are there any added incentives towards financing other than 0%?