Chrysler and GM in trouble?

http://www.financialpost.com/story.html?id=681270

That is just crazy that both Chrysler and GM are cancelling their lease programs as of Aug 1st. This could finish them off with all the business they will lose after doing this.

actually they are both losing money on their lease programs.

Edited: 7/29/2008 8:10:27 AM by notlowyet

yeah I know, with everyone leasing the trucks and then returning them. But think how many people will go with Ford or any of the imports that still have lease programs.

I work for a GM dealer and was talking about this yesterday with the business manager. GM is cancelling their SmartBuy program because they lose money with it. They are going to continue having a more typical lease program similar to Ford's and other auto manufacturer's.

i think pretty much everybody in this business is losing money.Our toyota dealership is sellin the hell out of corollas and prius though!!!

Yep because the residual value of the vehicle when returned is to low. Al lthe manufactures will eventually feel it if they have not already. Just the way the economy is going.

Ford will eventually be cancelling their lease programs within the next year as well. All big 3 will be making it alot easier and cheaper to buy the vehicles when this starts.

I drove by the Chrysler dealership today, and they have 2008 Dodge Ram 4x4 Crew Cabs regular $48,000 on sale for 40% off sticker price

yeah, they can't give those Dodges away..hehe

The wife leased an 06 Escape back in 06, and the residual value was fairly low at the end of the lease. But now that people are moving to more fuel efficiant vehicles, the value of the Escape is more than the set residual value by almost $3,000! So now that we bought out the lease, we could sell the Escape for 3,000 more than we bought out the lease!!