As the American auto industry makes a steady recovery, a commonly used sales tool is getting increase attention.
Leasing, which was all but dropped by General Motors during 2008 and 2009, has made a comeback and is now a major part of the automaker’s playbook.
Although many manufacturers nearly dropped leasing altogether, over the past couple of years leasing is quickly making a comeback as an affordable way to finance a car, with General Motors setting the pace among the Detroit Three.
Thanks to low monthly payments, General Motors is currently leasing about 20% of its vehicles, more than any other American automaker.
That’s up from 2% in 2008, according to a report by USA Today.
Why the Leasing Recovery?
It may seem illogical, but as cars are given more technology, higher levels of engineering and design, and improve in overall quality, the prices of lease deals are actually falling.
That’s because as quality rises, so does the long-term value of a vehicle. Automakers can offer better lease deals because the vehicle will have a better value after the lease is over.
In other words, car shoppers are getting better cars at better rates, because at the end of the lease, they are returning better vehicles.
Residual value, or the value of a product after so many years of use, has risen for almost all GM vehicles.
The 2014 Chevrolet Impala, for example, has a residual value that is 12% higher than the outgoing model.
The average Chevrolet Cruze has a residual value about 15% higher than the Cobalt, which it replaced.
Cars and trucks that remain high-quality vehicles for a longer period of time allow General Motors to offer lower-priced lease deals without skimping on features and services.
Excellent Lease Deals for Cedar Rapids and Iowa City
We are proud to offer high-quality Chevrolet vehicles, and we’d love to sit down and see if a lease deal is right for you.
Call Pat McGrath Chevyland at 888-406-6073 to learn more about our current lease specials.