GMAC, a bank holding company with nearly 15 million companies worldwide, is a global and independent financial services company. Their operations include mortgages, insurance, finance, online banking, and automotive finance.
On August 10th, the company announced that it will provide a leasing option to consumers on select auto vehicles. This program will only be offered to auto consumers in 45 states not including the states of Ohio, Michigan, New York, Connecticut, and New Jersey. This is because an existing program is already under way in these states.
This ability to once again provide car loans for consumers to buy GM vehicles is intended to help the automaker to gain revenue. The leasing option was stopped last year as GM had a sharp depreciation of its vehicles within the pre-existing leasing program. This will also increase business for those providing car insurance to those purchasing a new car.
"GMAC's increased funding flexibility, the completion of key manufacturer restructurings and rising used car values have made leasing a viable financing option," said Bill Muir, GMAC president in the company's official press release.
"We will support a lease promotion by General Motors in 45 states, and may add a leasing option for other makes or models in the future. While we do not expect leasing to return to its hey-day levels across all models, it remains an attractive financing tool for certain segments, particularly new launch vehicles and select models in the luxury market. For the true lease intender – someone who wants to rotate vehicles more frequently without the need for trade-in or resale – GMAC's new lease program is a great financing alternative."
This notion to return to leasing is an attempt to get back to the original intent of being a full-service finance company for automotives. "GMAC is part of the solution to stimulate the rebound in the auto industry," Muir said. "We have credit to make available, and want to put it to good use for qualified customers. We encourage people to visit a dealer and discuss financing options, as GMAC is reviewing credit applications from a broad spectrum of buyers."
This new leasing program will be offered for the following car models:
2009 Models: Cadillac CTS, Chevrolet Malibu, Chevrolet Traverse
2010 Models: Buick Enclave, Buick LaCrosse, Chevrolet Equinox, GMC Acadia
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Other models may be added to the list in the near future.
While loans are re-instated, finding affordable car insurance rates may be difficult. Shop around for reasonable car insurance premiums.
GMAC will also offer SmartLease Protect, which will be a limited coverage of up to $5,000 of wear and tear on the vehicles. This coverage will waive the customer's deposit (if applicable). For additional information, contact a GM dealer.
