REPORT: GM to resume leasing luxury vehicles on Aug. 1
Cadillac CTS - Click above for a high-res image gallery
Just in time for the weekend, rumor has it that General Motors and GMAC plan to crank up the leasing machine again on August 1. When GM stopped the practice last year, leases made up 20% of its business, but was costing the General money hand-over-fist. Dealers have continued to lease on their own, through outside banks, but the volume of cars leaving the lot as lease deals is "negligible".
The most either company would say on-the-record is that they are looking at ways to get back into it. GM is said to have spoken to several banks – not just GMAC – to gain a solid position. GMAC, now a bank holding company, is also one of Chrysler's partners; with credit slowly opening up and resale values slowly rising, it's not a bad time for the company to take steps toward leasing again.
For the moment, the only car mentioned for lease availability is the Cadillac CTS, as the luxury segment is traditionally the most lease-heavy.
Gallery: 2008 Cadillac CTS - action shots
[Source: Wall Street Journal]
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Reader Comments (Page 1 of 2)
Ligor 5:08PM (7/29/2009)
somhow I find the standard CTS better looking and the -V
i'm not diggind that grillon the V that's for sure
hot car and I want the wagon in my garage
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MemphisNET 5:27PM (7/29/2009)
It's the grill. I dislike the V design, much prefer the 'standard' CTS look.
I've been wanting the wagon since the day I saw it -- the lease is just the icing on the cake, because lets face it, 3-4 years from now I'll want a new toy anyway.
urdaddy 5:36PM (7/29/2009)
Goodbye resale value.
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MemphisNET 5:48PM (7/29/2009)
Who buys a car to sell it?
inline6 6:15PM (7/29/2009)
Every other luxury carmaker can thank leasing for at least 1/3 of its sales.
FAIL.
Dave 8:04PM (7/29/2009)
Leasing is very attractive to companies who offer as a perk. Leased company vehicles are 100% deductible including gas and tires (minus personal use). This is why 60% of MB and BMW cars are leased.
If a company buys a car they can only write off 22k of the price over 5 years.
xtasi 5:38PM (7/29/2009)
@urdaddy: Well, low resale value is good or bad, depending on your situation. Good for me if I want to buy a 2 year old car.
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FASTLANE 6:07PM (7/29/2009)
Resale value is a figure FOR IDIOTS too stupid to remember that cars aren't investments.
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Tagg 11:11PM (7/29/2009)
Exactly.
The only cars that appreciate are bought with cash. Cars like the Ford GT, Ferrari Enzo and Bugatti are all paid in cash.
If you can afford a car the will appreciate in value over the next 35 years you don't need financing.
tankd0g 12:38AM (7/30/2009)
Yes, it's RETARDED to try to mitigate your losses. Go America!
Trent 6:14PM (7/29/2009)
Now that Caddie is leasing again I can sleep at night.
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n400 6:38PM (7/29/2009)
About time...now will the rates be competitive?
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Pedro 7:00PM (7/29/2009)
I must have missed the press release about GM planning to build luxury cars!
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Aloysius Vampa 7:22PM (7/29/2009)
Even if I don't agree with the sentiment, this is a funny comment.
DB 9:42PM (7/29/2009)
My thoughts exactly!
GM = luxury? HA!
tankd0g 12:39AM (7/30/2009)
And start a new financial division...
Randy 8:56PM (7/29/2009)
yawn...GM gets back into fleasing...after GM screwed their shareholders, bondholders, and others.
Here's a novel idea...no need to lease or get a loan if people would actually pay for their vehicle upfront!
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Mr.Oak 9:00PM (7/29/2009)
Whaaaaa!! Quit yer whining..
Randy 9:09PM (7/29/2009)
How many dollars did GM screw you out of when they filed bankruptcy, Mr. Oak? Do you do business with a company that doesn't honor its commitments to you? Do you pay cash for your vehicles or do you live in the former-fantasy-world of "buy now, maybe pay for later"? I'll bitch about GM if I want to.
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Tagg 11:10PM (7/29/2009)
This makes a lot of sense because all the other luxury makers and near-luxury makers are doing this. For example, you can get a BMW 3 Series for $400 per month with $2,700 due at signing. To lease a CTS you need close to $5,500 and that only gets you a $430 per month payment.
That is according to a Cadillac dealer in this weeks Automotive News.
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