Will GM Return to Leasing?

Last year, leases made up 20% of GM’s business, but that practice quickly fell out of favor because of plummeting residual values, mostly on large SUVs. During the truly hard times, GM quit leasing altogether, but individual dealers kept up the practice using outside banks.

Now, after skirting meltdown, GM has watched credit thaw and the resale value of its cars begin to rise, and it wants to get back into the practice. According to the Journal’s sources, GM is also looking at other financing options besides GMAC.

Likely, GM would look at leasing luxury vehicles from Cadillac first and foremost, because that’s where leasing tends to be most profitable.

GM Plans a Return to Car Leasing (The Wall Street Journal via Autoblog)