Autoblog

REPORT: Lexus to lease - not sell - all U.S. LFA supercars in order to foil speculators

Chris Paukert — Mon, 23 Nov 2009 11:31:00 EST

Filed under: Car Buying, Coupe, Performance, Lexus

2011 Lexus LFA - Click above for high-res image gallery

In an interesting bid to foil exotic car speculators who drive up the prices of limited-availability models, Lexus will reportedly lease - not sell - its forthcoming LFA supercar when it hits the U.S. market in January of 2011. As Automotive News reports, Lexus will only offer two-year leases of its 552-horsepower supercar at a fixed price (which has not yet been disclosed). At the conclusion of the two year period, leaseholders will get the opportunity to purchase the vehicle outright, at which point the title would be handed over. As Lexus' vice president of sales and dealer development Brian Smith tells it, his company wants "people out driving the car and not just parking it in a museum or selling it at an inflated price."

As part of the gearing-up process to sell this markedly different kind of vehicle, Lexus will also reportedly train 15 LFA specialists that will be located at the company's four regional outposts, and the Japanese automaker will also pay for dealers to receive the special tools and training that will service the vehicles.

Despite being a lease, all cars will still be individually tailored to the customer and built-to-order beginning in December of 2010.

This is certainly an interesting and potentially very clever end-around on the speculator's market. If it works, look for other exotic car companies like Ferrari and Lamborghini to follow suit.

Gallery: First Drive: 2011 Lexus LFA

Photos copyright (C)2009 Damon Lavrinc / Weblogs, Inc.
[Source: Automotive News]

REPORT: Lexus to lease - not sell - all U.S. LFA supercars in order to foil speculators originally appeared on Autoblog on Mon, 23 Nov 2009 11:31:00 EST. Please see our terms for use of feeds.

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Chrysler to resume leasing vehicles soon?

Chris Shunk — Fri, 11 Sep 2009 14:28:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep, Earnings/Financials

2009 Dodge Ram - Click above for high-res image gallery

In late July 2008, Chrysler announced that it would stop leasing vehicles effective August 1. The news helped exasperate the decline of Chrysler group vehicle sales while giving customers fewer options for getting into a new vehicle. After leasing was discontinued, Chrysler's market share dropped from 11.3% to 9.2%. The decline came in part because of Chrysler's very public bankruptcy proceedings and its lackluster product lineup, but there is little doubt that the end of vehicle leasing was also a major contributor to the automaker's precipitous decline.

In an effort to get back on the right track, Automotive News is reporting that dealer sources say leasing could return to the Pentastar as soon as September 18. Chrysler is reportedly waiting until after next Tuesday to make an announcement so it can look over residual value data from the Automotive Lease Guide before making a final decision. Chrysler, which uses GMAC as its finance arm, could follow General Motors' lead and offer leasing only on select vehicles. AN estimates that the Dodge Ram, Journey, Nitro and Grand Caravan, the Jeep Grand Cherokee and the Chrysler Town & Country could be among the vehicles ready for lease duty.

Gallery: 2009 Dodge Ram

[Source: Automotive News]

Chrysler to resume leasing vehicles soon? originally appeared on Autoblog on Fri, 11 Sep 2009 14:28:00 EST. Please see our terms for use of feeds.

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2010 Nissan Leaf electric car: In person, in depth - and U.S. bound [*UPDATED w/vids & live photos]

Chris Paukert — Sat, 01 Aug 2009 21:48:00 EST

Filed under: Car Buying, Japan, Technology, Hatchback, Nissan, Design/Style, Electric

2010 Nissan Leaf EV - Click above for hi-res gallery

It would be easy to paint Nissan as late to the burgeoning U.S. green party, as the company essentially only counts the Altima Hybrid to sell among its alt-fuel offerings - and that sedan utilizes technology borrowed from Toyota, and it's only sold in a few states in small volumes. While that may be the case, Nissan says their near-term prospects are really quite different. While the company has admittedly been cautious in marketing alt-fuel vehicles in North America, they have been hard at work developing electric vehicles - as well as the advanced lithium-ion batteries to support them - since 1992. What's more, officials say they are now singularly well-placed to leapfrog "transitional" powertrain solutions like gas-electric hybrids in favor of genuine zero-emissions vehicles, and they are promising that their first pure-electric car will reach U.S. shores late next year.

That car, the Nissan Leaf shown here, is the reason we find ourselves in the company's brand-new Yokohama headquarters today. Designed as a four-to-five seat, front-drive C-segment hatchback, Nissan says the Leaf is not just for use as a specialty urban runabout, but rather, it was designed as an everyday vehicle - a "real car" whose 160-kilometer+ (100 mile) range meets the needs of 70% of the world's motorists. In the case of U.S. consumers, Nissan says that fully 80% of drivers travel less than 100km per day (62 miles), making the Leaf a solid fit for America's motoring majority, even taking into account power-sapping external factors like hilly terrain, accessory draw, and extreme temperatures.

We were afforded an advance look at the Leaf ahead of the car's unveiling today, and while it was a hands-off affair, we did have the chance to formulate some in-the-metal first impressions and take a deep dive into the car's technology. Click through to the jump to learn all about it.

Gallery: 2010 Nissan Leaf EV

Gallery: 2010 Nissan Leaf EV- Yokohama Introduction

Continue reading 2010 Nissan Leaf electric car: In person, in depth - and U.S. bound [*UPDATED w/vids & live photos]

2010 Nissan Leaf electric car: In person, in depth - and U.S. bound [*UPDATED w/vids & live photos] originally appeared on Autoblog on Sat, 01 Aug 2009 21:48:00 EST. Please see our terms for use of feeds.

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REPORT: GM to resume leasing luxury vehicles on Aug. 1

Jonathon Ramsey — Wed, 29 Jul 2009 17:02:00 EST

Filed under: Car Buying, Chrysler, GM

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]

REPORT: GM to resume leasing luxury vehicles on Aug. 1 originally appeared on Autoblog on Wed, 29 Jul 2009 17:02:00 EST. Please see our terms for use of feeds.

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Fleeting Fortune: Courts asked to cancel Madoff's car leases

Noah Joseph — Tue, 27 Jan 2009 07:01:00 EST

Filed under: Etc., Government/Legal, Earnings/Financials

There are many jobs in the world which we wouldn't want. Ranking high among them is Irving Picard's. He's the guy stuck with managing the liquidation of Bernie Madoff's firm. Having purportedly defrauded his clients (including numerous charitable foundations) of over $50 billion, Madoff has undoubtedly left quite a mess to untangle, and we're glad someone else is taking care of it while we write about cars for a living. But amidst that assuredly insurmountable mess is a fleet of luxury automobiles that Bernard L. Madoff Investment Securities had leased for use by the firm.

Included in the Madoff garage are a Land Rover Range Rover, a Cadillac DTS, a pair of Mercedes S550s and a GL450, along with an unspecified Lexus. Several of the vehicles have already been returned to their dealerships, but Picard is petitioning the Federal Bankruptcy Court to rubber-stamp the cancellation of the leases in order to mitigate the cost of administrating the case. Considering that Picard has already delivered letters of termination to the firm's sixty employees and that Madoff himself is under house arrest in his Manhattan penthouse apartment, it's not like anyone's going to be using them, anyway. Unfortunately, since the cars are leased, there's no capital to recuperate for the reimbursement of Madoff's defrauded clients who are, themselves, still waiting to find out how much they've each lost.

[Source: The New York Times via The Car Connection]

Fleeting Fortune: Courts asked to cancel Madoff's car leases originally appeared on Autoblog on Tue, 27 Jan 2009 07:01:00 EST. Please see our terms for use of feeds.

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GMAC dramatically cut back on leases in September

Chris Shunk — Mon, 06 Oct 2008 10:59:00 EST

Filed under: Car Buying, GM

Leasing is down industry-wide by about 50% from 2007 levels, but General Motors' captive credit arm took an even bigger bite out of its vehicle leasing in September. GMAC leased only 2% of all GM products in September, and the decision to do so had everything to do with the recent events of the financial markets. While leasing was down GM-wide in September, GMAC and Chevrolet were hit the hardest. The General's two volume brands accrued only .6% and .7% of its sales through leasing, compared to 11.2% and 13.6% respectively last year. Leasing is virtually non-existent for vehicles with low residuals, and Cadillac, which typically leases over 40% of its vehicles, leased at an 8.4% clip last month.

Nobody on Wall St. is purchasing securities right now, giving GMAC very little money to offer leases to its customers. A controlling interest in GMAC was purchased by Cerberus well before the private equity firm took control of Chrysler. Chrysler stopped leasing all together on August 1 in response to the huge losses it took on returned leases of SUVs and trucks. Both GM and GMAC say the break from leasing is only temporary, but with the financial markets still in flux, don't expect this trend to reverse itself any time soon.

[Source: Automotive News, sub. req'd]

GMAC dramatically cut back on leases in September originally appeared on Autoblog on Mon, 06 Oct 2008 10:59:00 EST. Please see our terms for use of feeds.

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In lieu of leases, Chrysler wants you to "Shop 'til you Drive"

Damon Lavrinc — Fri, 01 Aug 2008 14:59:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep

Chrysler's departure from the leasing game certainly isn't going to help dealers move stale product off their lots, so the automaker has announced a new sales program unimaginatively named the "Shop 'Til You Drive Sales Event." What'll it take to get you into a new Chrysler, Dodge or Jeep vehicle?

Well, aside from $2,000 cash back on "select retail purchases," Chrysler is offering an August-only, 72-month, zero-percent APR financing deal on many of its slow-selling models that aims to make monthly payments approximately the same as a 36-month lease.

Additionally, pricing on Dodge, Chrysler and Jeep vehicles has been slashed, with the Ram dropping 40-percent of its MSRP, Aspen hacked by up to 25 percent, Town & Country minivans cut by 24 percent and Grand Cherokees dropping 28 percent.

Chrysler will also try to get lessees back into dealerships by offering special "loyalty incentives" that will be applied to a new retail purchase, along with waiving the $425 lease disposition fee.

The full details are posted in the press release below the fold.

[Sources: Chrysler, Automotive News - Sub. Req.]

In lieu of leases, Chrysler wants you to "Shop 'til you Drive" originally appeared on Autoblog on Fri, 01 Aug 2008 14:59:00 EST. Please see our terms for use of feeds.

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More leasing woes: Ford Credit takes big hit on trucks and SUVs

Chris Shunk — Mon, 28 Jul 2008 16:21:00 EST

Filed under: Car Buying, SUV, Truck, Ford, Earnings/Financials

Fresh off the news that Chrysler financial will no longer play the leasing game comes word that Ford took a $2.1B charge in the second quarter to offset expected losses from truck and SUV leases. High gas prices have put a huge dent in the truck and SUV market, so when customers turn in their vehicles, their residual value is lower than originally thought and Ford Credit ends up paying the difference. The trucks are fetching less at auction and on dealership used car lots, leaving thousands of dollars that need to be paid by Ford Credit. Ford is also faced with spending more on incentives to subsidize the monthly payments for its truck fleet. Ford's credit arm lost $1.4B in the second quarter, as repossessions and loan defaults also rose due to poor economic conditions. Despite Ford Credit's struggles, the Blue Oval has not said it will discontinue offering leases, which make up 20% of Ford's overall sales, though we've heard some very unsubstantiated rumors that an announcement similar to Chrysler's may come tomorrow.

[Source: Automotive News - subs. req'd, Photo by Bill Pugliano/Getty]

More leasing woes: Ford Credit takes big hit on trucks and SUVs originally appeared on Autoblog on Mon, 28 Jul 2008 16:21:00 EST. Please see our terms for use of feeds.

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Ford uses March to showcase luxury, value

Joel Arellano — Wed, 01 Mar 2006 13:00:00 EST

Filed under: Car Buying

If you're in the market for a new vehicle, March may provide an excellent opportunity to buy if a Mercury or Lincoln vehicle is on your shopping list.

According to the Detroit Press, FoMoCo will begin a special leasing program this Friday with no money down, no security deposit, and no payment for the first month on its Mercury and Lincoln vehicles. The program will reportedly last through May 1st.

Ford uses March to showcase luxury, value originally appeared on Autoblog on Wed, 01 Mar 2006 13:00:00 EST. Please see our terms for use of feeds.

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