General Motors will stay in the leasing business through August, but hasn’t committed beyond that, the company told dealers in a letter Tuesday, reports the Detroit News.
After next month, "we don’t know the answer," company spokeswoman Susan Garontakos said.
The August guarantee should help dealers find leasing options for their customers amid tighter credit standards for lessors. Automakers are taking big losses on vehicles coming off lease. Not only are the values of these vehicles substantially lower, but they are also having trouble selling these vehicles once they come back.
GMAC Financial Services announced Tuesday it will completely stop leasing in Canada.