Bob Lutz: GM to return to leasing with luxury vehicles

According to Bob Lutz, General Motors Company will return to the leasing business keeping its focus on luxury vehicles.

“We will get back into leasing, but we are not going to use massive subsidized leasing to drive volume because it’s volume without profitability,” Lutz told Automotive News. “We’d rather sell less at higher profit than sell more at lower profit. The luxury end of the market is very heavy on leasing and as credit frees up, it would be very logical to get back into the portion of the market that we currently don’t compete in, which is the lease market.”

The Wall Street Journal and Bloomberg reported that GM and...
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DexDiamonds - 7/30/2009 10:02:16 AM

+5 Boost

Makes sense... I'd rather lease than own a Cadillac.

Agent63 - 8/3/2009 3:07:05 AM

+2 Boost

Yep, have fun with a beast like the CTS-V and give it back and leave the repairs and headaches to the dealership. CTS-V is the only luxury car from GM I would buy. Although Buick's aren't too bad when it comes to luxury at an economic price. The ones in China are beautiful.

Foreigner - 7/30/2009 12:13:45 PM

+1 Boost

Funny, I didn't know that GM made luxury cars.

veyron1001 - 7/30/2009 12:57:55 PM

+1 Boost

Neither did I

pushrod27 - 7/30/2009 3:54:37 PM

+1 Boost

if you hate GM and American cars so badly, why even did you enter this post? Cocksuckers.

Anthony - 7/30/2009 5:07:30 PM

+2 Boost

Cool. I wouldn't mind a 2-year lease on an Escalade. Definitely would never buy one.

tango - 7/30/2009 6:02:40 PM

+5 Boost

Leasing cars like these makes sense. BUT, only if you use the car for business where you can claim tax returns on it. The tax returns alone can basically pay the lease. Get into a 2 year lease and return it at the end and keep rotating it like that. The resale of these vehicles could be facilitated by marketting the crap out of their approved used status. BMW, Mercedes, and Porsche all do it. Excellent. Just the company that Cadillac wants to be in.

Joe_Limon - 7/30/2009 6:44:05 PM

+4 Boost

Either that or if you plan to lease for the rest of your life and always trade in for the newest model. It's much cheaper doing that then buying new and selling every couple years.

quizz - 7/30/2009 10:27:59 PM

+2 Boost

Assuming you only drive the 12,000 miles or so. If you really drive a lot for your business, the lease end mileage penalties would kill you. Drive 16,000 miles or more per year and it's better buy a 4 year old used car with a few thousand still left on the warranty - just get it extended to 100,000.