Buick to offer 24-month lease deal in bid to boost lease penetration

Article by Christian A., on March 15, 2012

The Buick brand of General Motors will introduce a 24-month lease deal in an effort to strengthen lease penetration to the levels at par with other luxury brands. The brand is facing the industry's longest streak without a monthly sales profit. Beginning Thursday, Buick dealers will offer the "Experience Buick" lease program.

This includes free scheduled maintenance, OnStar and Sirius XM radio for the entire lease cycle. Normally, customers will get free OnStar for six months and a free satellite radio for three months. 

Executives at Buick believe that the short lease term complemented with the freebies will attract luxury buyers who might not have considered the brand. The lease is offered through Ally Financial. According to Buick marketing chief Tony DiSalle, the offer is "really a call to action" to buyers to consider Buick's offer from the point of view of "great product and great customer treatment."

Sales of Buick increased after the bankruptcy of GM, soaring 52% in 2010, and 14% to 177,663 units in 2011. However, they have dropped in each of the last five months, including a 17% decline this year through February.

On the other hand, the industry recovery quickened its pace. Cadillac is also another U.S. brand that has not recorded a monthly profit since September. In addition, Buick is relying on the latest Verano compact as well as the upcoming Encore compact crossover for its 2012 sales growth.

DiSalle disclosed that leases formed 24% of Buick's sales in 2011, an increase from the previous years but still trails most luxury brands, some of which come with lease penetration rates exceeding 50%. 

Vice President Brian Sweeney of Buick-GMC sales and service explained that the program also is targeted at strengthening customer retention by driving service business to dealers. Mike Bowsher, who owns three Buick-GMC stores in the Southeast, related that dealers are willing to reinforce their lease business. He is also the co-chairman of the Buick-GMC National Dealer Council.

Topics: buick

If you liked the article, share on:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries