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

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 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