Automotive News - August 11, 2008 - (Page 48) 48 • AUGUST 11, 2008 LEASES Customers face tougher credit rules continued from Page 3 SUBARU Customer Incentives Cash rebate Finance rate Cash rebate Finance rate Cash rebate Finance rate Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. BMW Expires Sept. 2. 2008 models 3 series, 5 series, 6 series, 7 series, M5, M6, X3, X5 Z4, Z4 M Express cargo, Tahoe Hybrid $1,500-$2,000 Equinox, Express, HHR, Silverado 2500HD, Silverado 3500HD $1,500 Colorado $0-$1,500 $1,000 Impala $1,000 Cobalt, Malibu $500 Aveo Corvette – Uplander – GMC Sierra 1500 $1,500-$2,000 Envoy, Yukon, Yukon Hybrid, Yukon XL $2,000 Savana cargo $1,500-$2,000 Canyon, Sierra 2500HD, $0-$1,500 Sierra 3500HD Savana $1,500 Acadia $500 Hummer H2, H3 $7,000-$8,000 Pontiac Grand Prix $2,000 Torrent $1,500 $1,000 G5, Solstice, Vibe $500-$1,000 G6, G8 – Saab 9-3, 9-5, 9-7X Saturn Aura, Sky, Vue (excl. hybrid) $500-$1,500 Outlook $500 M35, M45 Nissan Armada, Titan Quest Xterra Maxima, Pathfinder Frontier Sentra Altima Versa Altima Hybrid, Rogue 350Z – $4,500-$5,000 $3,500 $3,000 $2,500 $1,750-$2,500 $1,500 $500-$1,250 $800 $500 – 0.9-1.9% 0-1.9% 1.9% 0.9% 1.9-3.9% 0.9-2.9% 3.9% 3.9% 2.9% 3.9% 1.9-2.9% 2.9-6.9% Garfinkel said he also wants to lease vehicles through Hann Financial Service Corp., a regional finance company in Jamesburg, N.J. Hann President Charlie Dovico says his company has been flooded with calls from Chrysler LLC dealers since Chrysler Financial stopped offering leases to U.S. consumers this month. But Dovico warns that Hann’s credit standards are tougher than those of the typical captive, whose main mission is to help the parent automaker sell cars and trucks. “We don’t offer tiered pricing” for customers based on credit history, Dovico says. “We either approve them or reject them.” In the first half of 2008, leases accounted for less than 1 percent of auto contracts backed by credit unions. Tony Boutelle, CEO of Credit Union Direct Lending, says members of his organization are more likely to emphasize loan options. “With the lease market drying up, credit unions have 72- to 84-month loan programs,” says Boutelle, whose group is a network of credit unions that offer vehicle financing through dealerships. “We are doing well in this tough economy.” – – 0.9% 1.9% CHRYSLER LLC Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Dodge Journey $1,000-$1,500 – 2008 models Chrysler 300 (incl. SRT8 and C) $3,750-$4,500 0-5.9% Aspen $4,000 0% Sebring, PT Cruiser (excl. convertible) $1,250-$3,500 0-5.9% Town & Country $2,000-$3,000 0-5.9% Pacifica, PT Cruiser convertible $1,000-$2,500 0-5.9% Dodge Ram 1500 $5,000-$6,000 0% Ram 2500/3500 $4,500 0-7.9% Durango $4,000 0% Charger, Magnum $1,500-$3,500 0-5.9% Grand Caravan $2,000-$3,000 0-5.9% Avenger, Dakota $1,500-$3,000 0-5.9% Caliber, Nitro $1,250-$1,750 0-5.9% Jeep Grand Cherokee $2,500-$5,500 0% Commander $3,500-$4,500 0% Patriot, Liberty $1,500-$2,000 0-5.9% Compass, Wrangler $500-$750 0-5.9% 2007 models Chrysler Aspen, 300 C, Pacifica $0-$5,500 – Town & Country $4,500-$5,000 – Sebring, 300 (excl. SRT8 and C) $0-$4,500 – PT Cruiser $2,500-$3,500 – Dodge Ram 2500/3500, Ram 1500 $0-$8,500 – Durango $0-$6,000 – Grand Caravan, Dakota $0-$5,000 – Magnum, Charger $0-$4,500 – Caravan, Nitro $0-$4,000 – Caliber $0-$1,000 – Jeep Commander $0-$6,500 – Grand Cherokee $0-$6,000 – Liberty $0-$5,500 – Compass, Patriot $0-$2,500 – 2.9-6.9% 3.9-6.9% 2.9-6.9% 5.9-6.9% 5.9-6.9% 0-6.9% 5.9-6.9% 0-6.9% 0-6.9% 2.9-6.9% 3.9-6.9% 2.9-6.9% 5.9-6.9% 0% 2.9-6.9% 3.9-6.9% 5.9-6.9% 2.9-6.9% 5.9-7.9% 0-6.9% 5.9-6.9% SUZUKI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2008 models Grand Vitara, XL7 $0-$3,000 0-3.9% SX4 $750-$1,500 1.9-6.9% Reno, Forenza $500 3.9-6.9% TOYOTA MOTOR SALES Expires Sept. 2. 2009 models Lexus RX 350 ES 350, IS – 2.9-3.9% – 2.9-4.9% VW GROUP OF AMERICA Expires Sept. 2. 2009 models Volkswagen Eos, GTI, Passat, Rabbit, Tiguan – 3.9-5.9% 2008 models Audi A6, A8, Q7, RS4, S4, S8 – 0.9% A3, A4, TT – 0.9-2.9% R8 – 5.94-8.19% Volkswagen New Beetle convertible, GTI – 0% Touareg 2, GLI, Jetta, New Beetle sedan, Rabbit, Eos, R32 – 0-2.9% Passat – 0-3.9% AMERICAN HONDA MOTOR CO. Expires Sept. 2. 2009 models Honda Pilot 2008 models Acura MDX, RDX, TL, TSX Honda Odyssey, Ridgeline, S2000 Accord Pilot Element – 1.9-5.49% – 1.9-3.9% – – – – 0.9-2.9% 0.9-6.9% 1.9-3.9% 1.9-6.9% VOLVO Expires Sept. 30. 2008 models S80, XC90 S60, V70, XC70 C70, S40, V50 C30 – – – – 0-3.9% 4.9% 5.9% 6.9% Weakened assets Other banks also express caution about leasing. In July, Huntington National Bank, of Columbus, Ohio, stopped writing leases on trucks and SUVs. “We will be very selective as to what we put in the portfolio,” says Nick Stanutz, senior executive vice president of Huntington. Detroit 3 captives, banks and other leasing companies often raise money by bundling auto loans and leases and selling securities backed by those assets. But investors who worry about plummeting truck values and rising auto loan delinquencies are demanding a greater return in exchange for the risk those securities represent, says Hann Financial’s Dovico. Although his company’s securities are top-rated, Dovico says, the high costs of selling asset-backed securities “make no sense.” Like their Detroit 3 competitors, Toyota Motor Sales U.S.A. Inc. and American Honda Motor Co. Inc. must cover losses on off-lease trucks and SUVs. Those companies’ captives say they aren’t pulling back from leasing — but aren’t greatly expanding that business, either. “We are not planning any major changes in our approach to leasing,” says Toyota Financial Services CEO George Borst. “We feel it is important to provide our dealers in the lease market with a variety of affordable options for their customers.” Residual values for small and midsized cars have held steady or increased, while residuals on big SUVs and pickups have fallen across the board. So carmakers with strong lineups of cars, such as Toyota or Honda, can offer competitive leases. “The residuals on those vehicles are going up, which brings the lease price down,” says Allen Levenson, sales and marketing vice president of Asbury Automotive Group, a public dealership group in New York. As companies bail out of leasing, Levenson says, “Honda and Toyota could actually be beneficiaries.” c HYUNDAI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Sonata $2,000 – Azera $500 – Genesis – 0.9-3.9% 2008 models Azera, Santa Fe, Sonata $2,500-$3,500 – Entourage, Tucson $1,000-$2,000 – Accent, Elantra, Tiburon $500-$1,750 – Veracruz $1,500 – Dealer Incentives Incentives in this table are a summary of dealer programs offered. Programs may vary by region and model. FORD MOTOR CO. Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Ford Fusion $1,000 2.9-6.9% Escape, Focus, Mustang $500 2.9-7.9% Flex – 0.9-6.9% 2008 models Ford F-450 Super Duty $5,500-$6,500 0.9-4.9% F-250 Super Duty, F-350 Super Duty $4,500-$6,500 0.9-4.9% F-150 $3,500-$4,000 0-6.9% Expedition, Expedition EL $3,000-$4,000 3.9-7.9% Edge $2,500-$3,500 0-6.9% Explorer, Ranger $2,000-$3,500 0-7.9% Escape, Mustang $1,500-$3,000 0-7.9% Econoline, Fusion $1,000-$2,500 0-7.9% Focus, Explorer Sport Trac, Taurus, Taurus X $1,000-$2,000 3.9-7.9% Escape Hybrid – 4.9-8.9% BMW Expires Sept. 2. 2008 models 7 series, M, Z4 $2,500-$5,000 JAGUAR Expires Oct. 2. 2008 models XJ – 2.9-5.8% GENERAL MOTORS Expires Aug. 19. 2009 models Cadillac SRX, STS, XLR Escalade 2008 models Saab 9-3, 9-5, 9-7X $1,500 $1,000 $3,000-$4,500 KIA Expires Sept. 2. 2007 models Sorento $3,000-$5,000 Amanti, Rondo, Sedona $1,500-$4,500 Optima $3,500 Spectra, Sportage $2,500-$3,000 Rio $1,000 – – – – – AMERICAN HONDA MOTOR CO. Expires Sept. 2. 2008 models Acura MDX RDX TSX Honda Ridgeline Pilot Odyssey Element $3,500 $2,500 $1,000-$1,500 $4,500 $4,000 $2,500 $1,000-$1,500 LAND ROVER Expires Sept. 30. 2008 models LR2 – 5.9% MERCEDES-BENZ Expires Sept. 2. 2009 models R class – 2.9% GENERAL MOTORS Expires Aug. 19. In lieu of rebates, cut-rate financing is available. 2009 models Cadillac CTS – 1.9-6.9% Escalade – 6.9% Chevrolet Aveo, HHR, Avalanche, Cobalt, Colorado, Equinox, Malibu, Suburban, Tahoe – 6.9% GMC Acadia, Yukon, Yukon XL – 6.9% Hummer H3 $3,500 6.9-7.9% H2 $2,500 6.9-7.9% H3T $1,500 1.9-4.9% Pontiac Vibe $500 5.9-6.9% G6, G8, Solstice, Torrent – 6.9% Saturn Sky, Outlook, Aura – 6.9% 2008 models Buick Lucerne, LaCrosse $1,000 5.9-6.9% Enclave – 5.9-6.9% Cadillac DTS, XLR $4,000 0-4.9% Escalade, SRX, STS $3,000-$3,500 0-4.9% CTS – 0-4.9% Chevrolet Silverado 1500, Avalanche, Suburban, Tahoe $0-$2,000 0-6.9% TrailBlazer $2,000 1.9-5.9% LAND ROVER Expires Sept. 30. 2008 models LR3, Range Rover LR2, Range Rover Sport $3,000-$6,000 $1,500-$4,000 MITSUBISHI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Galant $2,000 0-9.9% Lancer, Eclipse Spyder – 3.9-10.9% 2008 models Endeavor, Raider $4,000 0-5.9% Galant $3,000 0-6.9% Eclipse $2,500 0-6.9% Eclipse Spyder $2,000 0-10.9% Lancer $0-$1,000 1.9-9.9% Outlander $1,000 0-10.9% Lancer Evolution – 2.9-5.9% MERCEDES-BENZ Expires Sept. 2. 2008 models CL class, R class, S class CLK class, CLS class GL class, SLK class E class, M class C class $0-$8,000 $0-$7,000 $6,000 $0-$6,000 $2,000-$3,500 NISSAN NORTH AMERICA Expires Sept. 30. 2008 models Infiniti EX35, FX35, FX45, Q56 G35, M35, M45 Nissan 350Z NISSAN NORTH AMERICA Expires Sept. 30. In lieu of rebates, cut-rate financing is available. 2009 models Nissan Armada $3,000 2.9% Titan $2,500 2.9-3.9% Versa $500 3.9% 2008 models Infiniti FX35, FX45, EX35, Q56 – 0% G35, G37 – 1.9% $4,000-$7,000 $2,000-$3,500 $1,000-$3,000 VOLVO Expires Sept. 30. 2008 models S60, S80, XC70, XC90 C70, V70 C30, S40, V50 $2,750-$4,250 $1,750-$2,500 $750-$1,500 Source: Automotive News and Edmunds.com Stories about these companies are on t http://Edmunds.com
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