GM counts on leasing to boost customer retention and dealers’ supplies of cars

Article by Christian A., on September 16, 2013

General Motors is hoping that leasing will experience an uptake so that customer retention improves and dealers' supplies of recent-model used cars will expand. In a conference call last week, U.S. sales chief Kurt McNeil said that GM is “most excited” about the leasing aspect. He added that its number of lessees continues to increase, particular in the fourth quarter when many lessees are returning.

On the other hand, Cadillac will be offering lease deals on selected 2013 models through September, according to Don Johnson, vice president of Chevrolet sales and service.

The reason why dealers, manufacturers and auto lenders want lease customers to increase is their intense loyalty (compared to customers who purchased using cash or via loan) and the probability that they will lease another vehicle with the same brand. McNeill admitted that the company is excited about retention and that off-lease cars will boost dealers' supply of almost-new used cars.

He also said that traditional finance customers tend to come back and choose an older vehicle. According to the Power Information Network, there are estimated to be 1.7 million vehicles coming off lease in 2013 nationwide. This is 35% higher than 2012 (with the addition of 447,000 units). Starting in 2010, the number of new leases has gradually rebounded.

GM officials hope to attain "competitive" levels of lease penetration. For the second quarter, leasing made up about 20% of GM's U.S. sales volume while the industry recorded 24% (excluding GM). GM provides leases via captive finance company GM Financial, Ally Financial Inc. and U.S. Bank. [source: automotive news - sub. required]

Topics: gm

If you liked the article, share on:

Comments

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 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