Chrysler stunned the automotive industry and consumers recently by announcing that it will no longer be offering leases on its vehicles, and the move triggered Ford and GM to unveil new restrictions to its auto leasing programs as well. Edmunds.com, the premier online resource for automotive information, recently released, “How Will the Pull-Back in Leasing Affect Consumers.” The article answers consumers’ questions about recent changes to leasing programs and tells them what to expect going forward.
“Leasing is not on its way out - it’s an extremely valuable tool for manufacturers, dealers and consumers,” emphasized Philip Reed, Senior Consumer Advice Editor for Edmunds.com. “But consumers should expect to see some differences next time they go to lease a vehicle.”
“How Will the Pull-Back in Leasing Affect Consumers” includes the following suggestions and observations:
- Only consumers with the best credit may qualify for manufacturers’ leases.
- Buying may become a better option as automakers offer higher finance incentives to help consumers match previously low monthly lease payments.
- Banks, third-party leasing companies and credit unions may offer attractive leases to consumers, even when manufacturers do not.
- Consumers coming out of leases may be able to buy their current vehicle at a bargain price.
“Domestic automakers are cutting or eliminating leasing to minimize their exposure to risk in the form of further drops in residual values,” said Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. “But since manufacturers still want to attract former lease customers, consumers can look forward to expanded finance incentives, including zero percent APR and cash-back offers.”
More detailed guidelines for successfully navigating the current leasing situation are available in “How Will the Pull-Back in Leasing Affect Consumers,” located at http://www.edmunds.com/advice/leasing/articles/130132/article.html. Edmunds.com also offers an extensive leasing advice section, including "10 Steps to Leasing a New Car" and a comparison of leasing, buying and buying used.
About Edmunds Inc. (http://www.edmunds.com/help/about/)
Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
Contacts:
Corporate Communications
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Media Hotline: 310-309-4900
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