DealersEdge Daily Headlines
There are lots of ways for an automaker to give up market share and General Motors has tried most of them. Uninspired product designs, reducing the number of retail outlets, angering the dealers left standing, and abruptly exiting the auto leasing business. So it has to be considered a good sign that GM is moving to offer some new leasing arrangements through its dealerships.
The reconstituted GMAC Financial Services announced that it would offer new leasing programs for select GM vehicles in 45 states, according to the Detroit Free Press. And last week, GM announced a deal with U.S. Bank to lease vehicles in five other states.
"While we do not expect leasing to return to its heyday levels across all models, it remains an attractive financing tool for certain segments, particularly new launch vehicles and select models in the luxury market," said Bill Muir, GMAC president, in a statement.
GMAC said it was returning to the leasing business because of improved funding flexibility, rising used car values and completed manufacturer restructuring efforts.
GM’s Mark LaNeve admits that the cutback in leasing cost GM two points of market share because the automaker was unable to compete in the 12% to 15% of the market that leases new vehicles.
  
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