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View Full Version : GM getting out of the leaseing business



Mafty
08-19-2008, 10:44 PM
We recieved a letter in the mail earlier this month, and probably anyone else who owns a GM vehicle did as well. in the letter it states as of Aug 01/08 (so its already happening) GM will no longer offer reduced lease rates since they can offer 0% financing which they would rather have people do. So anyone looking at getting a GM in the future forget about leasing it, unless you want to be leasing at 8% or whatever the bank rate GM will give you (most likely its 8%). Im not sure this was a smart move for GM, not everyone wants to finance, and i think lease keeps customers coming back every 4 years to buy another vehicle from them, with a finance they may not see that customer for another 8 years. im sure it has all been calculated by their accountants, but from a buyer perspective doesnt seem to smart to me. thoughts?

S.F.W.
08-19-2008, 11:00 PM
the problem they have had with leasing is the residual. People lease a car for four years, but only pay 50% of the value in lease payments. Thus leaving 50% for GM to recoup when it sold the car used. However, the car's were not holding much if any residual. So GM was losing a lot of money on the leases.