Why Can’t I lease a Cadillac CTS-V?
The answer is rather complicated. You should be able to lease any number of the new, attractive and highly rated cars that GM has produced in the last couple of years. Instead, GM Car Leasing has become extinct. The Cadillac CTS, 2010 Corvette, or the spiffy, new Chevy Camaro are very attractive and desirable, yet expensive examples of some great new, American cars. Unfortunately, these very attractive cars come with $30,000 to $60,000 price tags, which means monthly payments that are absurd or unreasonable for most of us. For example, a $60,000 Cadillac CTS-V would carry a 60-month loan payment of over $1,000 per month! Some of us aren’t paying that much for our homes. Ahhh..Isn’t that why we’d like to lease them? GM put an end to it’s leasing program several months ago, when the bottom fell out of the banking industry. The sad truth is that American Car Makers have not made cars which hold their value very well. Successful Car Leasing depends on cars that retain good resale values after 3-5 years. Where Hondas and Toyotas are worth 40-50% of their value after 4 years, GM, Ford and Chryslers are as low as 35% or less. The depreciation of American Cars have made it less attractive for banks and car dealers to lease them for a reasonable monthly payment. Combine this with the financial crisis, and there was simply no way that GM, Ford and Chrysler could continue to offer a lease on their cars. There was a surplus of over-valued cars on depressed dealers lots from previous leases so they had to put an end to this. Other car manufacturers have suffered too. For example, even though Hyundai has produced some award-winning SUVs and luxury cars like the Veracruz and Genisys, they pretty much abandoned car leasing for 2009. While, the quality on Hyundai is considered very good, it has not been at the top of car ratings publicity long enough to earn the type of high residual values worthy of practical leasing values. Vi
Will GM, Ford and Chrysler Lease Cars Again?
GM announced back in July that they would re-enter the car leasing business in early August of 2009. I have yet to see any evidence that this has happened. GM car leasing deals have been scarce if non-existent for a while.
With the new Malibu, Cadillac CTS-V and Camaro and the highly anticipated Chevy Volt, GM definitely has some cars to make us optimistic that they can make a comeback. We will keep our eyes open and post you with the details about their goal to re-enter the lease market – hopefully, soon!
It’s Not Just American Car Makers
Virtually all auto manufacturers have been hurt somewhat by the slumping economy and bank fiasco of a year ago. However, there has probably been some trade-off from the competition for makers like Honda, Subaru, Nissan and Mazda who feed off the inferior resale values of their competition and are able to continue providing competitive lease offers month after month. While we’ve been providing these lease ratings on our sister site, Product Review Ratings for the past 10 months, there have been some blockbuster deals from time to time, including a $199 payment on a Honda Civic Hybrid. It is enjoyable to shop the automobile offers and specials the first week of each month and see what they are going to come up with next.