TTAC Called It: GMAC Ceasing Leasing Tomorrow. Employee Car Discounts Next to Go?

Robert Farago
by Robert Farago

We've just heard from our sources that GMAC is about to announce that it will no longer offer lease deals on the Yukon, Yukon XL, Suburban, Tahoe, all full-size trucks, Envoys and TrailBlazers as of tomorrow. The General's captive finance arm will also raise the "money factor" (the leasing rate) on Cadillacs by two percent. Needless to say, this will be an enormous blow to GM's sales. We're told that GM has called a meeting of all mid-western dealers at the Rock Financial Showcase for the same day, [presumably] so that marketing maven Mark LaNeve can announce the incentive deals that will replace leasing. We also hear that GM is about suspend employee pricing on most car lines, such as the Chevy Cobalt, in order to make money where they can. We'll have more info as we get it. [hat tip to you-know-who-you-are]

Robert Farago
Robert Farago

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4 of 19 comments
  • Netrun Netrun on Jul 31, 2008

    @opfreak: dude, let it go! +2% on a Caddy is a LOT of money! That's like +$60 a month without getting the navi! Might put a crimp on sales, not good. And I don't think leasing is coming back. Cerberus via GMAC won't let them throw any more money out the window while they call the shots. Anybody still think it'll take Red Ink Rick three years to slow down truck production? I think there'll be suddenly all sorts of ways to shutter/stop production. Heck, the cost of renting space for all those trucks will soon exceed the value of the trucks themselves!

  • Anonymous Anonymous on Jul 31, 2008

    Hmm... My dad is a GM salary retiree (non-union) so I've always had a soft spot for GM cars. I'm in the market for a new car to replace my Golf, and since it would at least symbolically help my dad's retirement, I was thinking of the new Cobalt SS turbo sedan when it comes out later in the year. First, GM cancels his healthcare, and now they're going to cancel the employee pricing? That employee pricing was the last reason I had to consider that Cobalt, or any other GM product.

  • Buickman Buickman on Jul 31, 2008

    GM has lost over $50 Billion since I first called for Wagoner''s resignation. the man is a crook. the UAW has been bought and paid for. the dealers are an endangered species. and Wall Street banks are succeeding in their quest to relocate an industry and rape the middle class. too many blind followers and sound asleep fools. how much worse does it have to get before people wake up and realize there is a reason GM management refuses to listen to their best salesman of all time? the American public just doesn't get it. wouldn't listen to Ron Paul about the value of US currency and foolishness of a war that can't be won by a greedy military/industrial complex hell bent on feeding off an out of control, privately owned, printing press called the Federal Reserve. GM's Board of Bystanders doesn't want to win anywhere near the present time frame. they could never get away with this crap if cars were selling. WAKE UP PEOPLE! It's time for a revolution and I'm in the mood to lead one. more soon from your friendly neighborhood Buickman... __________________

  • SAAB95JD SAAB95JD on Aug 01, 2008
    Man, if GM dealers have a glut of trucks and SUVs on their lots now, this is only going to make things worse… Not really. Since GM owns GMAC they are negatively exposed to the hideous resale value of their own products. Since they cannot give them away new, the used "end of lease" residual value will be so low they will lose money again. This is actually kind of a smart move.