According to Bob Lutz, General Motors Company will return to the leasing business keeping its focus on luxury vehicles.
“We will get back into leasing, but we are not going to use massive subsidized leasing to drive volume because it’s volume without profitability,” Lutz told Automotive News. “We’d rather sell less at higher profit than sell more at lower profit. The luxury end of the market is very heavy on leasing and as credit frees up, it would be very logical to get back into the portion of the market that we currently don’t compete in, which is the lease market.”
The Wall Street Journal and Bloomberg reported that GM and its affiliate GMAC could return to leasing cars as early as August 1st.
Lutz made no comment on the reports and said that he was unsure when GM will return to leasing its vehicles.
LeaseTrader shows that demand for leases on the Cadillac Escalade has increased 22 percent over the past year and 18 percent for the Buick Enclave.
– By: Kap Shah