Thoughts on Chrysler and GM getting out of the lease game?

[ZoomVT]

what do you guys think?

[Patriots Game]

I can assume they are taking a huge beating on the Buybacks and interest rates. In my current industry, their used product value (especially trucks) are well below the buyback amounts.

So getting any money for their portfolio before it gets worse, in my mind is a good idea.

[ZoomVT]

yeah they are getting killed, but not leasing is a sure recipe for disaster.
obvioulsy their product cant hold any value over any period of time and they are getting killed on lease returns, but if they dont offer it then they cannot compete with other automakers. Moving units is much more important than maximizing roi on each unit, at least for them. their production lines will keep spitting out oversized, ineficient vehicles for 2 more years (it takes an avg of 3 years to completely change production policy) and they will have nowhere to put them. The only way they will be able to compete is to drop prices and that still would be a problem as reliability and resale value are an issue.

If the cars are bad enough that the automaker is not willing to buy them back in 3 years, why the hell would anybody buy them and get stuck with a worthless car in 3 years?

lets hope uncle samd oesnt bail them out again.