According to GM Canada's public relations manager, Steve Low, General Motors will soon be following in Chrysler's footsteps and no longer be offering long-term financed lease rates on new vehicles sold in Canada.
This decision was announced to the manufacturer's Canadian dealers on Monday and will come into effect on August 1, 2008.
"As part of an initiative launched over six months ago, GM has decided to concentrate on retail purchase financing. However, contrary to what has been written in the Canadian press, our dealers will still be offering the option of long-term leasing," says Low.
Also, GMAC, the American manufacturer's financing partner, will still be offering its programs. "Obviously, the 1 or 2% financing options will very probably be cut," admitted Low.
GM Canada dealers will continue to offer other long-term leasing programs from independent financial institutions, such as GE Capital and Scotia Leasing.
Same policy as Chrysler
Chrysler Canada adopted a similar strategy on July 2. "Even though we have chosen to concentrate on purchase financing, that doesn't mean that Chrysler has quit on the leasing game," says Daniel Labre, Chrysler Canada's product and marketing communications manager. "We do however wish to alter the lease-purchase ratio in our operations."
In Canada, long-term leases are very popular with buyers. In Chrysler's case, almost 45% of its Canadian clients currently choose this option, compared to only 20% of its American clients.
This decision was announced to the manufacturer's Canadian dealers on Monday and will come into effect on August 1, 2008.
"As part of an initiative launched over six months ago, GM has decided to concentrate on retail purchase financing. However, contrary to what has been written in the Canadian press, our dealers will still be offering the option of long-term leasing," says Low.
Also, GMAC, the American manufacturer's financing partner, will still be offering its programs. "Obviously, the 1 or 2% financing options will very probably be cut," admitted Low.
GM Canada dealers will continue to offer other long-term leasing programs from independent financial institutions, such as GE Capital and Scotia Leasing.
Same policy as Chrysler
Chrysler Canada adopted a similar strategy on July 2. "Even though we have chosen to concentrate on purchase financing, that doesn't mean that Chrysler has quit on the leasing game," says Daniel Labre, Chrysler Canada's product and marketing communications manager. "We do however wish to alter the lease-purchase ratio in our operations."
In Canada, long-term leases are very popular with buyers. In Chrysler's case, almost 45% of its Canadian clients currently choose this option, compared to only 20% of its American clients.