Automotive leasing, which once accounted for nearly a third of the market, will become more expensive, difficult, and rare as banks and automakers scale back on the practice.
Chase Auto Finance, among the leading lease lenders not owned by an automaker, notified dealers this week that the bank will not finance Chrysler leases. The announcement comes days after Chrysler Financial, the Auburn Hills automaker's lending arm, said it would exit the leasing business beginning Friday.
Also, dealers said GMAC LLC is tightening credit standards for lessors. GMAC, jointly owned by General Motors Corp. and Cerberus Capital Management LP, stopped leasing altogether in Canada.
Ford Motor Co. would not confirm nor deny reports that it is raising lease prices on certain trucks and SUVs to the point where leasing is impractical, but the automaker said it adjusts its residual values based on market conditions. A Toyota Motor Corp. spokesman said there is no change in its leasing strategy.
PHOTO GALLERY: Quantum of Solace Bond Car and the craziness of Comicon
2008!
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