Auto banks dump leasing and cut programs for special financing. August 5, 2008- LV, NV News from the automobile financing world has not been good. Chrysler has dumped leasing, BMW is cutting incentivized leasing, HSBC has opted out of the car loan business and community credit unions have tightened eligibility to the point of “what’s the point”? This leaves millions of good paying, current leasee’ stuck for an option to the terminal ownership of a 60 or 72 mos. note. WHY is this happening? you ask. Consider the fact that most people lease vehicles that are expensive or above average in cost, sharing the depreciation with the bank. Until recently, the residual value the bank set for the end-of-lease purchase price was reasonably close to the value the bank could expect to receive when selling it off their inventory. However, the bulk of the gas-sucking SUV’s, trucks and v8’s have taken a huge hit at the off-lease auctions as demand for these vehicles has dried up. Hence, the financial repercussions are so devastating the banks can’t afford to continue the carnage. Adios leasing as we know it. The Toyota, Honda and Nissan manufacturers are still offering incentive leases on their bread and butter models: Civic, Accord, Altima and Camry. So, focus on these sure-fire winners, while the getting is good, because I don’t give it long before the Japanese 3 follow suit. If you are currently leasing a car you like, consider asking for a lease extension while you ponder your next car purchase. All good things eventually come to an end. Yours- SLM For a great, no hassle deal on your next car, anywhere in the US, visit www.mycarlady.com]]>