Anyone Want To Lease My Truck For $1400/month

KCXLT · August 8, 2008

Boy this is going to help GM. I just checked what my truck would cost to lease now(in Canada) and if it was based on MSRP and $0 down it would be over $1400 /month for 4 years(at 19.75%) or $1600/month for 3 years. Even if you take it around Dealer Cost is would be over $1300/month for 3 years. At Dealer Cost the monthly payment to buy it at 0% is almost $800 for 5 years. I make a pretty good living, but I don't think I would want to take either one of those deals. This to me will drive everyone to lower priced vehicles, which have less profit built in or to Honda which you can still lease at a reasonable rate.

Outbacker · August 8, 2008

I am curious where you are getting 19.75% interest rate. I just bought mine and it was 7.75%. Wow, at 19.75%, I would not be buying anything let alone a truck.

J-man67 · August 8, 2008

No, but I will take some of the drugs you are smoking :o)

soludsnake · August 8, 2008

Funny guys! Hes right, go to the GM Canada Site and check the payment estimator.

The only option you are given for leasing is 19.75% no matter what the term while the purchase financing is 0%.

Linky

J-man67 · August 8, 2008

19.75%...thats a bad rate on a credit card. F THAT!!!!

soludsnake · August 9, 2008

19.75%...thats a bad rate on a credit card. F THAT!!!!

It's GM's way of saying 'DONT LEASE, WE ARE LOOSING TO MUCH ON THE ESTIMATED RESIDUAL VALUE OF YOUR TRUCK AT THE END OF YOUR TERM AND CANT SELL YOUR TRUCK!' without actually getting rid of leasing.

KCXLT · August 9, 2008

I think they would be better off adjusting the residuals than charging that amount of interest.

pwall · August 9, 2008

I was at the local dealership yesterday and they had a notice all over the place regarding GM leasing.

At the new rate, you'd be crazy to lease from GM.

Wonder what Ford/Dodge are doing ?

shedberg · August 9, 2008

I was at the local dealership yesterday and they had a notice all over the place regarding GM leasing.
At the new rate, you'd be crazy to lease from GM.

Wonder what Ford/Dodge are doing ?

The same thing they are always doing... building crappy trucks.

soludsnake · August 9, 2008

I was at the local dealership yesterday and they had a notice all over the place regarding GM leasing.
At the new rate, you'd be crazy to lease from GM.

Wonder what Ford/Dodge are doing ?

The same thing they are always doing... building crappy trucks.

Buh-zing!

Won_Hunglo · August 9, 2008

GM & other automakers wants nothing to do with leasing. Look at last Q's report. GMAC & GM got hosed on truck & SUV resale values. Used & off lease trucks/SUVs are next to worthless at auctions right now. Writting a new lease = more bleeding when the vehicle gets turned in. Outright sale = customers problem.

fbachman · August 9, 2008

Boy this is going to help GM. I just checked what my truck would cost to lease now(in Canada) and if it was based on MSRP and $0 down it would be over $1400 /month for 4 years(at 19.75%) or $1600/month for 3 years. Even if you take it around Dealer Cost is would be over $1300/month for 3 years. At Dealer Cost the monthly payment to buy it at 0% is almost $800 for 5 years. I make a pretty good living, but I don't think I would want to take either one of those deals. This to me will drive everyone to lower priced vehicles, which have less profit built in or to Honda which you can still lease at a reasonable rate.

yeah, it is almost impossible to analyze this quote without the residual value. My gut is that the LOW residual is what's driving up this payment ($1400... sheesh).

WAY better off to purchase... and... as already mentioned, the Big3 are running away FAST from leasing --- largely because of the low residual.

As the oil bubble is beginning to burst, this will rebound a little too in the future.

Billy-Jean · August 9, 2008

Boy this is going to help GM. I just checked what my truck would cost to lease now(in Canada) and if it was based on MSRP and $0 down it would be over $1400 /month for 4 years(at 19.75%) or $1600/month for 3 years. Even if you take it around Dealer Cost is would be over $1300/month for 3 years. At Dealer Cost the monthly payment to buy it at 0% is almost $800 for 5 years. I make a pretty good living, but I don't think I would want to take either one of those deals. This to me will drive everyone to lower priced vehicles, which have less profit built in or to Honda which you can still lease at a reasonable rate.

wow thats more expensive that a porsche payment

D&SYukonDenali · August 9, 2008

Boy this is going to help GM. I just checked what my truck would cost to lease now(in Canada) and if it was based on MSRP and $0 down it would be over $1400 /month for 4 years(at 19.75%) or $1600/month for 3 years. Even if you take it around Dealer Cost is would be over $1300/month for 3 years. At Dealer Cost the monthly payment to buy it at 0% is almost $800 for 5 years. I make a pretty good living, but I don't think I would want to take either one of those deals. This to me will drive everyone to lower priced vehicles, which have less profit built in or to Honda which you can still lease at a reasonable rate.

Where do I sign up for that interest rate.

rogerf · August 9, 2008

I think they would be better off adjusting the residuals than charging that amount of interest.

Leasing companies have no control over residuals, they are dependent on secondary market factors (resale value). Leasing terms are also dependent on two major factors: 1). Residual values 2). The ability to convert depreciation write-offs into corporate tax savings. If the leasing company has nothing meaningful to gain due to low corporate profits and/or a socialist govenment that won't let them recover depreciation, the capital leasing market will dry-up.

Leasing has been working well on trucks because resale values have traditionally been high. Now they have tanked and obviously aren't expected to recover anytime soon judging by leasing terms quoted.