GM Prepares to Return to Leasing

Aug 04, 2009
This week, Bloomberg has reported that General Motors is planning to begin leasing vehicles again sometime in the month of August. GM suspended their leasing program after slumping resale values drove the auto giant away from the practice.

GM has yet to reveal which vehicles will be available for leasing but confirms that they are hoping to bring back leasing options “in the critical segments such as luxury,” according to Vice President of U.S. Sales Mark LaNeve.

LaNeve says that GM’s sales suffered after the termination of the leasing program, especially in luxury vehicles and among potential customers in the Northeastern states.  However, GM spokesmen are skeptical that the success of the leasing program will ever reach the level it previously occupied.

The automaker has yet to make any decisions on which models will be covered or what the final structure of the leasing program may be. Whether this program will affect GM’s fleet operations has yet to be determined.

GM’s leasing structure is beneficial to sales of their luxury models, making it easier for customers to eventually purchase the vehicle and supply GM with a final sale.