Detroit Bureau on Twitter

Archive for the ‘Leasing’ Category

GM Offers First-Ever Extended Bumper-to-Bumper Warranty

Company claims it could raise resale values.

by on Oct.15, 2018

GM's new extended warranty is accepted at all GM dealers across the U.S.

The difference between buying one new vehicle or another can often come down to the tiniest of things, but General Motors is now offering a big thing that it hopes will make a big difference: an extended bumper-to-bumper warranty.

The company is offering what it is calling the first ever true extended bumper-to-bumper warranty that covers Chevrolet and GMC products for five years or 60,000 miles, whichever comes first, while Cadillac and Buick owners can get a six-year or 75,000-mile warranty.

Product News!

“One of the best things about buying a new vehicle is the peace of mind that comes with the warranty,” said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection.  (more…)

New Vehicle Sales Expected to Hit 17M-Unit Pace in September

Despite brisk pace, total will fall short over August numbers.

by on Sep.27, 2018

Despite a strong daily sales rate, U.S. new vehicle sales in September will fall short of August's results.

The total number of vehicles sold in September is likely to drop, according estimates from Edmunds and Cox Automotive.

Total sales volume in September, even though running ahead of August’s pace, is forecast to decline nearly 60,000 units from last month and nearly 100,000 units compared to September 2017, Cox said.

News Now!

“Year-over-year comparisons are challenging this September, as the industry saw record sales levels last year,” noted Charlie Chesbrough, senior economist at Cox Automotive. (more…)

Fade of Zero-Percent Financing Makes Leasing More Appealing

Rising interest rates pushing buyers toward leases.

by on Sep.14, 2018

Zero-percent financing deals are increasingly difficult to find these days, pushing some into leasing.

Car shoppers are always looking for a deal, and often they’re excited by the prospect of zero percent financing; however, those deals are getting tougher and tougher to find.

The percentage of sales with zero percent finance deals has been cut in half in the last two years — dropping from 14.6% of transactions in August of 2016, to 10.4% last August to just 7.4% this August, according to Edmunds.

Product News!

This drop during the last three Augusts sparks interest because zero percent financing deals usually abound in August and September.

“August truly represents the month that we would have expected to see a turnaround in this trend if one was imminent,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “Moving forward, shoppers will likely need to do a bit more digging to find other ways to save on a new vehicle because it looks like zero percent finance deals are going the way of the dodo.”

(more…)

New Vehicles Sales Fell in Q2, as Leasing Rates Rose

Mercedes-Benz boasts highest average lease price.

by on Aug.17, 2018

Leasing rates rose in the second quarter of 2018 with SUVs accounting for the largest portion of those leases.

Though auto sales were down overall in the second quarter of 2018, folks leasing instead of buying new vehicles were doing their level best to keep sales numbers high despite lower incentives, according to a new study.

Swapalease.com notes the average months remaining in leases rose during the second quarter to 28.8 months compared with 25.1 months in the first quarter. The rise is an indication that people were looking to get out of their leases early in search of a better vehicle or deal.

The Last Word!

Not only was that measure up, the average miles remaining fell from 23,115 to 22,617 left in their contract, which is only a slight decrease. The ratio of months remaining to miles remaining, according to the website, is an indicator that people are driving more. Those looking to get out leases early could have been creeping up on their contract limit, forcing them to make a move earlier. (more…)

Lease Prices Remain Flat for Summer — Mostly

Good deals are target of potential leasees.

by on Jun.25, 2018

Lease approvals are on the rise in the U.S. as leases search for good deals.

More Americans are getting approved for leases, lured by some aggressive pricing by automakers; however, prices for most leases remain stable heading into the summer selling season.

The lease approval rate hit its highest number in 2018 at 70% last month, jumping from 67.3% in April, and well above the 57.8% at the start of the year. The approval rate was up in February and March, according to Swapalease.com.

News You Can Trust!

“Lease credit approvals continue to show more stability as we move through spring and into the summer months,” said Scot Hall, Executive Vice President of Swapalease.com.  (more…)

Automotive Subprime Lending Down in Q1

Banks, finance companies cut back 9.5% in first quarter.

by on May.08, 2018

Banks and finance companies are tightening their belts when it comes to lending to subprime buyers.

With predictions about new vehicle sales for 2018 hovering at or just below 17 million units, it appears that banks and finance companies may be inadvertently impacting that sales total with their current lending practices.

According to Equifax, subprime lending is down nearly double digits through the first quarter of the year.

Dig Deeper!

Reports show that 386,500 auto loans and leases have been originated YTD to consumers with a credit score below 620, which is generally considered subprime. This is a 9.5% decrease from the year-ago period.  (more…)

Caddy Triggers Battle of the Behemoths with $10,000 Escalade Discounts

Fighting off the new Lincoln Navigator.

by on Apr.16, 2018

A Cadillac Escalade Platinum can top $100,000.

If you’re looking for one of the biggest, baddest luxury utes on the market, Cadillac is hoping to lure you into one of its U.S. showrooms. Aiming to shore itself up against an assault by Lincoln’s newly updated Navigator SUV, Caddy is firing back with discounts of up to $10,000 on its own Escalade model.

GM has traditionally dominated the full-size SUV segment, both mainstream and luxury, and it gained significant traction when it introduced an all-new version of the ‘Slade for the 2014 model-year. But that’s a lifetime ago in today’s hotly competitive market and Lincoln has been building momentum fast with the all-new version of the Navigator it launched last year.

News You Can Trust!

While the two models don’t generate a lot of volume they serve up substantial profits for their respective manufacturers, providing plenty of room to load up the incentives. The question is whether Lincoln will now fire back with big givebacks of its own.

(more…)

BMW’s Access Follows Leaders in Luxury Leasing

Brand becomes latest to offer subscription service.

by on Apr.04, 2018

Ian Smith, BMW's chief executive officer of BMW Group Financial Services, will oversee Access by BMW, which starts in Nashville.

The old adage states that there are no original ideas and proving that one more time is Access by BMW, the brand revealed it will become the latest automaker to introduce a new subscription-based leasing plan.

The maker is using the app-based program to allow consumer to drive its top performance cars for as much as $3,700 a month. The new service kicks off this week in Nashville, Tennessee, and allows users unlimited access to cars.

Subscribe for Free!

The most expensive plan, the $3,700 version, permits users access to the company’s M-class cars and is appropriately dubbed the “M” tier, giving them access to the BMW M4 convertible, the all-new M5, BMW M6 convertible, as well as the BMW X5M and BMW X6M Sports Activity Vehicles. (more…)

Volvo’s Subscription Service Off to Fast Start

Program's already surpassing expected results.

by on Mar.29, 2018

Volvo CEO Anders Gustafson and Heith Rogers talk as Rogers signed up for Care by Volvo.

Volvo Cars new subscription service that kicked off by offering the XC40 is already succeeding.

Anders Gustafsson, president and CEO of Volvo Cars USA, said during the company’s press conference at the New York International Auto Show that the company’s new subscription service launched with the introduction of the new XC40 is already off to a promising start.

Stay Plugged In!

Volvo expected subscriptions, where customers pay one flat price, to account for about 10% of XC40’s total sales. “We’ve already hit that,” he said. In addition, Volvo customers can now sign up for a subscription through Apple Pay. (more…)

Volvo Sets Up Subscription Service for Polestar

First slots are completely sold out.

by on Dec.15, 2017

Volvo' first offering from its Polestar high performance division, the Polestar 1, will be built at its new plant in China.

Polestar, the new electric performance brand of Volvo Cars, announced the initial launch markets for its first car, the Polestar 1, in the United States and China and Western Europe.

Since its launch in October, Polestar has seen customers line up for the new Polestar 1 subscription with both performance enthusiast and electric car fans depleting the early production slots available.

Global Auto News!

By offering its vehicles, starting with the Volvo XC40 for a flat monthly subscription, Polestar expects to step away from the old-school, dealer-focused method of selling cars and adopted the model used to great success by Netflix and Spotify.  (more…)