Tuesday, July 29, 2008

No More Leasing Vehicles

GM, Chrysler To Stop Leasing Vehicles

The financial arms of Chrysler LLC and General Motors Corp. are getting out of the business of leasing vehicles as credit tightens and resale prices for gas-quaffing trucks fall, according to company executives and independent sources. The move, effective Aug. 1, could spark a backlash among dealers and consumers. In Canada, an estimated 43% of drivers lease their vehicles, double the U.S. rate of 20%. Chrysler told dealers in Canada and the United States that Chrysler Financial will stop offering financing for vehicle leases, steering buyers into low-interest loans to buy the vehicle outright, sources said. Dealers wanting to offer the leasing option would have to find their own source of financing, Chrysler said.

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