It's a limited program though.
GMAC Financial Services Incorporated is prepared to underwrite leases on new General Motors vehicles for the first time in more than a year. However, it’s not yet prepared to underwrite leases on vehicles sold by Chrysler dealers, GMAC officials confirmed.
“GMAC’s increased funding flexibility, the completion of key manufacturer restructuring 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,” he said.
Covered are —
- 2009 models: Cadillac CTS, Chevrolet Malibu, Chevrolet Traverse
- 2010 models: Buick Enclave, Buick LaCrosse, Chevrolet Equinox, GMC Acadia
“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,” Muir said.
GMAC also has separate lease program underway in Ohio, Michigan, New York, Connecticut and New Jersey, Muir said.
Mark LaNeve, GM vice president of sales, has said that the lack financing for leases has undercut GM’s sales in recent months.
Despite objections by GM executives, GMAC stopped leasing in July, 2008 as the financial crisis gathered momentum and the company faced huge write downs. Cerberus Capital Management, then fighting to keep control of GMAC ordered the halt as its financial position deteriorated. Cerberus’ control over GMAC was broken last Christmas when it asked the US Treasury Department for assistance under the Troubled Asset Relief Program.
Since then, GMAC has restructured into an independent financial services company with Cerberus and General Motors Company as minority shareholders. GM no longer has representation on the GMAC board of directors. It also is supposed to become the designated lender for the Chrysler Group LLC under the terms of the federal bailout.
Muir said as GMAC diversifies its customer base, 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.
“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,” Muir said.