The automotive industry is steadily making a recovery, with 2013 American sales forecasted to reach pre-recessions levels.
Now the top auto makers are fighting it out in the trenches to win sales and market share, with an important tool coming out of the utility belt – leasing.
Although many manufacturers nearly dropped leasing altogether, over the past couple of years leasing is quickly making a comeback as an affordable way to finance a car, with General Motors setting the pace among the Detroit Three.
During the worst days of the recession, GM and Chrysler nearly halted their leasing programs completely, but times have changed.
Thanks to low monthly payments, General Motors is currently leasing about 20% of its vehicles, up from 2% in 2008, according to a report by USA Today.
Why the Leasing Recovery?
It may seem illogical, but as cars are given more technology, higher levels of engineering and design, and improve in overall quality, the prices of lease deals are actually falling.
That’s because as quality rises, so does the long-term value of a vehicle. Automakers can offer better lease deals because the vehicle will have a better value after the lease is over.
In other words, car shoppers are getting better cars at better rates, because at the end of the lease, they are returning better vehicles.
Residual value, or the value of a product after so many years of use, has risen for almost all GM vehicles.
The 2014 Chevrolet Impala, for example, has a residual value that is 12% higher than the outgoing model.
The average Chevrolet Cruze has a residual value about 15% higher than the Cobalt, which it replaced.
Cars and trucks that remain high-quality vehicles for a longer period of time allow General Motors to offer lower-priced lease deals without skimping on features and services.
Excellent Lease Deals for Cedar Rapids and Iowa City
We are proud to offer high-quality Chevrolet vehicles, and we’d love to sit down and see if a lease deal is right for you.
Call McGrath Auto at 877-226-0908 to learn more about our current lease specials.