Jepp, Chrylser, Dodge: No more leasing of new vehicles starting 8/1/08! - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Chevyrocker · 07-26-2008, 10:34 AM

Some of you may have heard that as of 8/1/08, Chrysler will not be leasing their vehicles anymore through their primary bank. You will still be able to lease the vehicles, but you'd have to go through a third party bank which means the rates and residuals will be through the roof. As it turns out, the same dude who owns Chrysler owns 51% of GMAC (GM retains the other 49%). This could spell the end of leasing for us as well! The problem banks have with leasing right now is that they are losing their a$$es (pardon my language) once the leases are up and they try to sell the lease returns via auction.
The pre-owned truck market is in a slump right now and a truck or SUV that may have been worth $25,000 a year ago at lease end is worth $15,000 in todays market. Granted gas is going down, and our economy can't stay this way forever, but the banks are tightening up on what they are putting on the road. Rates are going up and residuals are getting lower, so leases are starting to not make sense anymore.
What does this mean for GM you ask? I don't know the national average or anything, but at my dealership about 35% of all new cars and trucks that we sell are leases. If the national average is anywhere near that, GM could be in trouble if we lose our ability to lease vehicles.

*DGthe3* · 07-26-2008, 01:45 PM

Quote:

Originally Posted by jsenn

leases are starting to not make sense anymore.

They never made sense to me in the first place

Supermans · 07-26-2008, 10:11 PM

Quote:

Originally Posted by jsenn

Some of you may have heard that as of 8/1/08, Chrysler will not be leasing their vehicles anymore through their primary bank. You will still be able to lease the vehicles, but you'd have to go through a third party bank which means the rates and residuals will be through the roof. As it turns out, the same dude who owns Chrysler owns 51% of GMAC (GM retains the other 49%). This could spell the end of leasing for us as well! The problem banks have with leasing right now is that they are losing their a$$es (pardon my language) once the leases are up and they try to sell the lease returns via auction.
The pre-owned truck market is in a slump right now and a truck or SUV that may have been worth $25,000 a year ago at lease end is worth $15,000 in todays market. Granted gas is going down, and our economy can't stay this way forever, but the banks are tightening up on what they are putting on the road. Rates are going up and residuals are getting lower, so leases are starting to not make sense anymore.
What does this mean for GM you ask? I don't know the national average or anything, but at my dealership about 35% of all new cars and trucks that we sell are leases. If the national average is anywhere near that, GM could be in trouble if we lose our ability to lease vehicles.

I'm quite sure this would mean most people would lease from Toyota and Nissan in that case..

stovt001 · 07-26-2008, 11:18 PM

It just means Chrysler will no longer finance the lease. Some other finance company will have to step in.

*TAG UR IT* · 07-27-2008, 01:41 AM

Hmmm...and I was actually thinking about financing through GMAC on this one. IF....they could get lower than 4.4%

07-26-2008, 10:34 AM	#1
Chevyrocker Weekend Rockstar Drives: Depends on the day... Join Date: Mar 2008 Location: West Palm Beach Posts: 1,444	Jepp, Chrylser, Dodge: No more leasing of new vehicles starting 8/1/08! Some of you may have heard that as of 8/1/08, Chrysler will not be leasing their vehicles anymore through their primary bank. You will still be able to lease the vehicles, but you'd have to go through a third party bank which means the rates and residuals will be through the roof. As it turns out, the same dude who owns Chrysler owns 51% of GMAC (GM retains the other 49%). This could spell the end of leasing for us as well! The problem banks have with leasing right now is that they are losing their a$$es (pardon my language) once the leases are up and they try to sell the lease returns via auction. The pre-owned truck market is in a slump right now and a truck or SUV that may have been worth $25,000 a year ago at lease end is worth $15,000 in todays market. Granted gas is going down, and our economy can't stay this way forever, but the banks are tightening up on what they are putting on the road. Rates are going up and residuals are getting lower, so leases are starting to not make sense anymore. What does this mean for GM you ask? I don't know the national average or anything, but at my dealership about 35% of all new cars and trucks that we sell are leases. If the national average is anywhere near that, GM could be in trouble if we lose our ability to lease vehicles.

07-26-2008, 11:18 PM	#4
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,812	It just means Chrysler will no longer finance the lease. Some other finance company will have to step in. __________________ "It's kind of fun to do the impossible" - Walt Disney There's a great big beautiful tomorrow shining at the end of every day There's a great big beautiful tomorrow Just a dream away

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07-27-2008, 01:41 AM	#5
TAG UR IT www.Camaro5store.com Drives: 2014 ZL1 #705 Join Date: Jul 2006 Location: SA, Texas Posts: 26,558 View My Garage	Hmmm...and I was actually thinking about financing through GMAC on this one. IF....they could get lower than 4.4%