Once Again Scant Leasing Impedes New-Car Sales
The lack of available leasing appears to be trumping vehicle quality when it comes to spurring new-car sales at GM’s Cadillac.
The WSJ:
General Motors Co.’s Cadillac division is rolling out new models and a fresh advertising campaign to stem a deep decline in sales, but it may not be able to make up much ground until the car maker gets back into the leasing business.
More than any other GM brand, Cadillac has been hurt by the company’s decision last summer to back away from the leasing business, which is a key driver of sales of luxury vehicles. Since then, Cadillac has steadily ceded market share even as it has scrambled to boost incentives.
Just 6% of Cadillac customers in August got leases. So far this year, Cadillac sales have fallen 47%, and its market share is 0.9%, down a half a point from 2007.
Just 6% of Cadillac customers in August leased a vehicle as opposed to buying one, according to Edmunds.com. That compares to 32% of customers taking the lease option at the five import luxury brands that Cadillac competes with: Mercedes, BMW, Lexus, Audi and Acura.
GMAC has helped GM by returning to leasing last month, but according to published reports, “that effort got off to a very slow start in August, partially because the leases didn’t offer as favorable terms as those offered by competing car brands.”
