GMAC Financial Services has announced it will offer a leasing option for auto consumers on select vehicles. The decision marks its re-entry into the leasing sector a year after it was forced to exit against a background of mounting losses and bad debts.
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GM stressed that its leasing activity will be ‘selective’ with no return to previous volumes.
“GMAC’s increased funding flexibility, the completion of key manufacturer restructurings and rising used car values have made leasing a viable financing option,” said Bill Muir, GMAC president.
“We will support a lease promotion by General Motors in 45 states, and may add a leasing option for other makes or models in the future. While we do not expect leasing to return to its hey-day levels across all models, it remains an attractive financing tool for certain segments, particularly new launch vehicles and select models in the luxury market. For the true lease intender – someone who wants to rotate vehicles more frequently without the need for trade-in or resale – GMAC’s new lease program is a great financing alternative.”
GMAC said that the return to leasing aligns with the company’s intent to be a full-service automotive finance company, providing a range of wholesale, retail, remarketing and insurance products for dealers and customers.
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By GlobalData“GMAC is part of the solution to stimulate the rebound in the auto industry,” Muir said. “We have credit to make available, and want to put it to good use for qualified customers. We encourage people to visit a dealer and discuss financing options, as GMAC is reviewing credit applications from a broad spectrum of buyers.”
The leasing program to be initially offered covers the following models:
- 2009 Models: Cadillac CTS, Chevrolet Malibu, Chevrolet Traverse
- 2010 Models: Buick Enclave, Buick LaCrosse, Chevrolet Equinox, GMC
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In addition, GMAC Insurance will offer SmartLease Protect, which provides limited coverage of up to $5,000 for excess wear and tear on leased vehicles and waives the customer’s security deposit. Interested customers should see their GM dealer for details.
States excluded from this GMAC lease program include Ohio, Michigan, New York, Connecticut and New Jersey, as an existing program is under way in these markets.
