GM Inside News Forum banner
1 - 20 of 72 Posts

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #1 ·
I dont have anything online that I can cite from, but, was just informed by a sales manager who just got finished watching an IDL brodcast that as of July 31, GM is done leasing (just like Chrsyler LLC).

Well, I should say, that there will no longer be any lease 'Programs' (ie, 0.9%, 1.9%, ect.)

If you want to lease, expect to be paying upwards of 10-14% interests rates.

Most every other vehicle will now have 0% financing for 72 months...

Dont know how this is gonna play out for you US customers though.

As a point of interest, Chrsyler LLC pulled its low interest programs on its products here in Canada on July 1 and supllimented them with 10-14% rates (and now, they are totally out of the leasing game come Aug 1 it seems)
 

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #3 ·
Just awaiting the HOL and ill post up the details of as soon as I get them...
 

·
Registered
Joined
·
8,966 Posts
I dont have anything online that I can cite from, but, was just informed by a sales manager who just got finished watching an IDL brodcast that as of July 31, GM is done leasing (just like Chrsyler LLC).

Well, I should say, that there will no longer be any lease 'Programs' (ie, 0.9%, 1.9%, ect.)

If you want to lease, expect to be paying upwards of 10-14% interests rates.

Most every other vehicle will now have 0% financing for 72 months...

Dont know how this is gonna play out for you US customers though.

As a point of interest, Chrsyler LLC pulled its low interest programs on its products here in Canada on July 1 and supllimented them with 10-14% rates (and now, they are totally out of the leasing game come Aug 1 it seems)
If that's the going rates you would have to be an idiot to lease. I think the big three are in for a bit of a shock if they try and get rid of leases. I have never leased a car in my life but how do you think this country got into the financial mess that it's in? Most people cannot save a nickel but are very confident in making a payment every month. There are a large percentage of people that if you offered them a monthly price they will jump all over it and not even look at what that combine price is over the course of ownership. Offer them a phone for $10 a month or $100 outright and they will jump on the $10 a month plan even if that is $10 a month for as long as they have the phone.
 

·
Registered
Joined
·
384 Posts
If any of these rumors are true, it would be GMAC that is done with leasing. Wells Fargo, in addition to leasing companies, still offer programs. Still big news but leasing isn't going away.
 

·
Banned
Joined
·
2,364 Posts
story now is that your 5 yr buy pyt is your 3 yr lease pyt. confirmation later today. how much more stupid stuff and Red Ink do we need to see before RIR is thrown out?
 

·
Registered
Joined
·
6,021 Posts
This will have the effect of just another hurdle to selling cars in the US. I know people who ONLY lease.
 

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #10 ·
Whats your percentage lease to buy in Canada?
Its 80% here.
We are about the same here in Canada on average too (about 80%)...at our dealer though, we are 89% lease rate
 

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #11 ·
If any of these rumors are true, it would be GMAC that is done with leasing. I know that Wells Fargo, in addition to leasing companies, still offer leases.
You are correct, it is GMAC that is done leasing...you can still go bank lease rates, but, they are not very competitive at all (around 12% here in Canada)...
 

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #13 ·
Is everyone freaking out?
I would be.
Yeah, I just this moment lost a GM Employee Order.

I was gonna order order him a 2009 G5 SE 1SB in expectation that when the car came at the end-to-mid September that programs would be comparable to now (maybe a point increase interest or a point or two drop in residual, but, generally, close to now). At that point, we could use the $2600 CAW incentive that goes into effect Sept 16 ontop of Employee Order.

And now, he can order today and be price/rate protected, but, unable to use the CAW incentive (aka BUZZ) in September as it was not available under todays programs (which increases his payment about $50/mo over what I quoted).

OR...

He can order now and use the BUZZ in September, but, would have to use the NEW programs which means like 14% rates which means his payments go up alsmot $150/mo!
 

·
Registered
Joined
·
1,988 Posts
I currently lease a GM vehicle but if I can't lease another one I will look at another brand. I know what I can pay on a lease per month and am not willing to own a GM. GM is gonna lose big time on this one. :(
 

·
Registered
Joined
·
4,801 Posts
I currently lease a GM vehicle but if I can't lease another one I will look at another brand. I know what I can pay on a lease per month and am not willing to own a GM. GM is gonna lose big time on this one. :(
Unless, of course, this will eventually trickle down to all other auto companies. I have always purchased, not leased, so I don't know all the ins and outs of the program...but if you can only lease a GM or Chyrsler vehicle through outside programs from now on (banks) and if the rates go up 10%....I dont' think Honda and Toyota and Ford are going to stand around and see money left on the table by keeping their lease rates the same. If it is going to cost you 10% more to go to outside sources to lease a GM or Chrysler vehicle...I'd be willing to bet that most other auto manufacturers will increase their lease rates 5-8% at least.
 

·
Registered
Joined
·
1,040 Posts
Discussion Starter · #16 ·
Unless, of course, this will eventually trickle down to all other auto companies. I have always purchased, not leased, so I don't know all the ins and outs of the program...but if you can only lease a GM or Chyrsler vehicle through outside programs from now on (banks) and if the rates go up 10%....I dont' think Honda and Toyota and Ford are going to stand around and see money left on the table by keeping their lease rates the same. If it is going to cost you 10% more to go to outside sources to lease a GM or Chrysler vehicle...I'd be willing to bet that most other auto manufacturers will increase their lease rates 5-8% at least.

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

·
Registered
Joined
·
1,367 Posts
This was a long time coming. You can only afford to subsidize leases when you are making money. The residual value of GM's car and trucks are horrible. My guess is GM probably lost money on the majority of their leases. The same is probably true for low APRs. I currently have 0% financing for up to 72 months, that's no way to make money. Although if it was not for the financing I would not have bought a car this month, is it worth it if GM lost money on the deal?
 

·
Registered
Joined
·
410 Posts
If that's the going rates you would have to be an idiot to lease. I think the big three are in for a bit of a shock if they try and get rid of leases. I have never leased a car in my life but how do you think this country got into the financial mess that it's in? Most people cannot save a nickel but are very confident in making a payment every month. There are a large percentage of people that if you offered them a monthly price they will jump all over it and not even look at what that combine price is over the course of ownership. Offer them a phone for $10 a month or $100 outright and they will jump on the $10 a month plan even if that is $10 a month for as long as they have the phone.
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.
 

·
Registered
Joined
·
123 Posts
At this point in time it is almost impossible for the seller of the lease to estimate the vehicle's value at the lease end. Right now GM, & Chrysler are losing big time on leases coming back because they over estimated the vehicle trade-in value. High interest rates would offset the loss if they underestimate the value at lease turn-in. The same thing that makes a lease attractive to a certain segment (only paying for the value of part of the car you use) is what is making it unattractive to the seller. He can not peg the price of car for the part you want to use at the time of the sale. Leasing will still be available it just will not be as cheap as it was in the past. Resell values are headed down, hence leases will cost more.
 

·
Registered
Joined
·
2 Posts
This is what happens when your cars and tuck have bad resale value. Just take a look at 5 year old civic and 5 year old cavalier. That is true with almost all gm vehicles. Now when they remove this lease. GM sales will probably fall. Why does rick still have a job? He was making all of these crappy cars that people did not want so he had to give them incentive to buy one and pushed them in rental agency. Now resale value has suffered and gm has to end lease. Another big mistake big rick and lutz.
 
1 - 20 of 72 Posts
Top