No lease deals at GM: How will you respond?

[CBC News]

GMAC Financial Services announced Monday that it will end subsidized forms of vehicle leasing beginning Friday.
North America's largest auto lender, which is owned by General Motors Corp. and Cerberus Capital Management LP, will stop offering lease deals that carry an incentive or discount but will instead offer one standard lease rate for all cars and trucks, company spokeswoman Gina Proia said.
The move comes at a time when many automakers and their financing companies are losing money on leases because of the sharp decline in resale values of leased vehicles, such as trucks and SUVs, in the face of record gas prices. GMAC's decision also comes on the heels of last week's announcement by Chrysler Financial to exit the leasing business altogether as of Friday.
More than 40 per cent of all vehicles are lease-financed in Canada. Consumers are walking away from their vehicles when the typical three-year lease period is over, and automakers are left with cars and trucks that are worth less on the market.
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How will this affect your decision when it's time for a new vehicle?


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[Scott Free]

I lease a Honda.

Mine was assembled in Canada (I made sure of that) and is a wonderful car. They have good lease rates and the cars keep their values well.

 

[#juan]

I can't imagine any North American car being described as "wonderful". Maybe if they built decent vehicles, they wouldn't have needed subsidised leases to move their product. Ford is gradually learning from Mazda but the other two of the so-called "big three" still haven't got the message.

 

[dj03]

I've never leased a car, I always buy and intend to continue doing that.

 

[Kreskin]

Leasing is generally good if you can claim your vehicle as an expense at tax time. Plus you pay the tax monthly instead of one shot at the beginning. This was especially good the last few years when the GST was reduced.

The message that GM is making doesn't bode well for the anticipated resale value of vehicles, though is good for people buying end of lease vehicles in the coming years.

 

[lone wolf]

I don't see a profit from the finance end in sales considering they have to bribe the customer with zero interest to choose a union-built over a quality-built. They're saying leases are subsidized. Has anyone ever done the arithmetic?

 

[L Gilbert]

We never even considered leasing, so I wouldn't know.

BTW, our little Dodge Dakota is a 2001 extended cab 4WD with 4spd auto and a 3.9 liter V-6 and the only thing wrong we've encountered is the heater fan blew a resistor one time. It gets better fuel mileage than the Honda truck, is quite comfortable, and performs nicely. And it doesn't bother me a bit that it was assembled in Brazil.