General Motors Drastically Cuts Back On All Leasing

In another sign that the auto industry is pulling away from lease deals, General Motors Corp. is cutting back incentives on new GMC, Buick and Pontiac vehicles.

Dealers learned Monday that the only lease deal they'll have to offer for those brands through GM's partially owned financial arm GMAC will be on the Pontiac G6, said Russ Shelton, owner of Shelton Pontiac Buick GMC in Rochester Hills.

The narrowed leasing incentives start Wednesday. It is unclear what kind of leasing deals GM will support for other brands, including Chevrolet, Saturn and Hummer.

Read Article

M35MT - 8/19/2008 12:40:05 PM

+1 Boost

Mildly on topic:

Anyone see the Chrysler commercials offering 40% of MSRP of the RAM? (Granted, the Ram shown in the commercial is the clean-cut work truck, which is odd that they would even show it, finally some truth in marketing I suppose)

40% off 30k is 12k - good chunk of change there.

mscottc1 - 8/19/2008 2:35:31 PM

+1 Boost

it's no wonder that trucks & other vehicles with huge incentives are worth so little down the road. The manufacturers keep pulling stuff like this! Who would buy a used one when a new one is just as cheap?

Leasing going away = a baaaaaad thing for consumers.

BMW4me4ever - 8/19/2008 4:13:35 PM

+1 Boost

huu 76 ... the lease rates are not 0.9%. They are not even close. The least expensive lease rate equates to about 3% for a 328 sedan. The average lease rate equates out to about 5%. pay attention ..

steve27t - 8/19/2008 10:04:41 PM

+1 Boost

Now we will see GM sales really tank. With no decent leases on offer it will take quite a percentage of buyers out of the market. I have leased my vehicles since the mid 90's and would not consider anything but a lease. Rent/lease a depreciating asset and buy an appreciating asset (whatever that might be in todays market?). Leases make perfect sense with low interest rates and if you want to drive a new vehicle, but it will be interesting to see how leases go in the next couple of years.

OneOfOne - 8/24/2008 3:27:53 AM

+1 Boost

who cares about gm lease? the cars depreciate so fast that they are practically worthless in 5 years. gm is going to shrink even more until they make better mainstream cars and stop wasting so many resouces on absurd pinky ring mobiles, I mean ,corvettes.