TTAC Called It: GMAC Ceasing Leasing

ttac called it gmac ceasing leasing

It's no longer a rumor, wild-ass or otherwise. We've just received word that GMAC has informed their Canadian dealers they will no longer offer vehicle leases as of August 1st. U.S. dealers will get the news during a conference call with GMAC this afternoon. Technically, GMAC may still be offering leases, but they'll be so onerous it'll be the same as killing them dead. Meanwhile, U.S. leases will be replaced with a "Plan B." We're thinking low monthly payment with a balloon (the return of SmartBuy?), but we haven't received details on any non-lease lease-a-like deal yet. GMAC joins Chrysler Financial as the latest to scuttle leases after being stuck with a bunch of overestimated residuals. Can Ford be far behind? We'll let you know as we find out.

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4 of 31 comments
  • AGR AGR on Jul 28, 2008

    In Canada there are GM dealers contacting customers and advising them that they have till Thursday July 31 to lease a GM vehicle. It could be a tactic to generate month end business, and it could be factual.

  • Areitu Areitu on Jul 28, 2008

    Maybe GM plans to let people Rent-2-Buy their cars for only $30 a day.

  • Captain Tungsten Captain Tungsten on Jul 28, 2008

    Still nothing about this in either of the Detroit rags. Maybe TTAC called this one a bit too soon? (at least in the US)

  • Landcrusher Landcrusher on Jul 28, 2008

    I don't lease, so this is second hand, but what I hear is that if your lease is nearly over, and you wish to buy the car, they will not negotiate. Is this true? You mean that with all the SUV's coming back at values WAY below residual, they have NO ONE figuring out a way to sell more of these cars to the lease holders at better than market value?