GM will forget about the last three payments on existing leases if you buy a new car

Article by Christian A., on February 14, 2011

General Motors Co. has started a promotion earlier this month that entices current lease holders to buy a new car and have the last three payments on existing leases waived. GM is also adding an incentive to deals that exceeded offers made by rivals.

GM said that the promotion is valid on most models with leases that expire between now and Aug. 31. Researcher Autodata Corp. said that GM raised incentive spending in January by 16% to an average of $3,663 per vehicle, the highest among major automakers. GM's U.S. sales went up by 22% last month, doing better than the industry's 16% gain.

In a video presentation for GM’s initial public offering in November, the company said that it aimed to offer fewer incentives that cut margins and gave off the impression that price is the main selling point for GM vehicles. Jessica Caldwell, an analyst at Edmunds, said that early-return leasing deals may conflict with that pledge and so she hopes that GM won’t push through with it.

During the company's monthly sales conference call with analysts and reporters, Don Johnson, GM's vice president of U.S. sales, said that the company will start discussing incentives “directionally” instead of providing specific data on a month-to-month basis.

In an interview this week at the Chicago auto show, Rick Scheidt, GM's vice president of Chevrolet marketing, said that he has not seen any internal behavior “that suggests we have gone back to old ways.” Scheidt added that it isn’t the time to go back to bad habits, especially since the company knows that “everybody’s watching.” [via autonews - sub. required]

Topics: gm, united states

If you liked the article, share on:

Comments

Recommended

If you’re selling some of the most expensive and most exclusive cars in the world, perhaps it would be a great idea to commission an ultra-rare work from the same...
by - May 24, 2017
Ford Motor Co. now has a new man on the top, and he goes by the name of Jim Hackett. Effective May 22, 2017, Hackett is named the new president...
by - May 24, 2017
Skoda recently launched the new Karoq compact SUV as a replacement model to its now-defunct Yeti small crossover. Slotted below the newly introduced Skoda Kodiaq, the new Karoq features a...
by - May 23, 2017
There are already rumors suggesting that the next generation BMW 5-Series GT is expected to be joining the 6-Series range. The latest reports instead tell us that that 3-Series GT...
by - May 23, 2017
In 2004, the British marque Rolls-Royce officially entered South Korea with the opening of their showroom located in Seoul before opening their second showroom last September in Busan. Now RR...
by - May 23, 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