English 
English Welcome
on East Filters
Looking for auto parts? Please click below.
Our products
Racor Fuel filter/Water Separator
Oil water separator parts
Sakura Filters Equivalent
Fuel filter accessory
Top Searches
Oil filter
Fuel filter
Air filter
Oil water separator
Fuel water separator
Racor
Volvo
Caterpillar
Benz
Perkins
Scania
Komatsu
MAN
HINO
Iveco
TOYOTA
Leasing Pullback Threatens Already-Anemic Sales
DETROIT - By eliminating the potential for many marginal transactions, the pullback from leasing by the Detroit Three may further enfeeble the U.S auto market when it already is weaker than at any point in the last 15 years.
GMAC said this week that it no longer will offer lease incentives in Canada and is curtailing financing to U.S. customers who are considered high credit risks. Ford Motor Credit has begun telling dealers that it is essentially ending leasing deals on most trucks and SUVs. Both moves followed Chrysler Financial's announcement last week that it is ending all leasing deals in the United States.
And major banks, including Chase and Wells Fargo, are reining in their exposure to auto-leasing deals as well.
'The dealers I've talked with are in shock,' Joseph Phillippi, president of AutoTrends Consulting, in Short Hills, New Jersey, told Inside Line. 'So many have gotten so used to having this relatively low car payment through leasing. If they have to go out and finance vehicles by taking title and ownership, the only way the industry will be able to make the transition effectively is to stretch people out to 60- and 72-month' loans.
But actually, the Big Three automakers have little choice but to cut their exposure to leases given two main developments: rising risks from American consumers who have less-than-premium credit, and the hit being taken by their biggest leased vehicles in residual values when they are resold after the end of the lease.
The OEMs 'need to cut back on that problem,' said David Cole, chairman of the Center for Automotive Research, in Ann Arbor, Michigan. 'It makes leasing very high-risk when you can't guess residuals very well.'
Leasing has run at about 20 percent of overall transactions in the U.S. market lately. But among some OEMs it's significantly smaller. GM moves about 15 percent of its vehicles through leases, and Toyota is at about the same level, said Mark LaNeve, GM's vice president of vehicle sales, service and marketing.
'The percentage of leasing will drop for the next few years,' LaNeve told Inside Line.
Still, GM, at least, sought to refute any notions that it would make a wholesale exit from leasing in the U.S. market. 'We are in the market today with competitive programs to make GMAC leasing more affordable and plan on continuing to offer this financing alternative,' LaNeve said in a statement issued on Wednesday.
GMAC said this week that it no longer will offer lease incentives in Canada and is curtailing financing to U.S. customers who are considered high credit risks. Ford Motor Credit has begun telling dealers that it is essentially ending leasing deals on most trucks and SUVs. Both moves followed Chrysler Financial's announcement last week that it is ending all leasing deals in the United States.
And major banks, including Chase and Wells Fargo, are reining in their exposure to auto-leasing deals as well.
'The dealers I've talked with are in shock,' Joseph Phillippi, president of AutoTrends Consulting, in Short Hills, New Jersey, told Inside Line. 'So many have gotten so used to having this relatively low car payment through leasing. If they have to go out and finance vehicles by taking title and ownership, the only way the industry will be able to make the transition effectively is to stretch people out to 60- and 72-month' loans.
But actually, the Big Three automakers have little choice but to cut their exposure to leases given two main developments: rising risks from American consumers who have less-than-premium credit, and the hit being taken by their biggest leased vehicles in residual values when they are resold after the end of the lease.
The OEMs 'need to cut back on that problem,' said David Cole, chairman of the Center for Automotive Research, in Ann Arbor, Michigan. 'It makes leasing very high-risk when you can't guess residuals very well.'
Leasing has run at about 20 percent of overall transactions in the U.S. market lately. But among some OEMs it's significantly smaller. GM moves about 15 percent of its vehicles through leases, and Toyota is at about the same level, said Mark LaNeve, GM's vice president of vehicle sales, service and marketing.
'The percentage of leasing will drop for the next few years,' LaNeve told Inside Line.
Still, GM, at least, sought to refute any notions that it would make a wholesale exit from leasing in the U.S. market. 'We are in the market today with competitive programs to make GMAC leasing more affordable and plan on continuing to offer this financing alternative,' LaNeve said in a statement issued on Wednesday.
