Interesting time to lease a car

2011 Ford Fusion Pictures, Images and Photos Right now happens to be a very interesting and unique time to lease a new car in Canada. Due to the restructuring of the domestic auto manufacturers, you can lease a car from a luxury brand like Acura or Volvo for the same price range that you would pay for some domestic cars. The reason is the insanely high interest rate or lease rate that the domestics are charging. What makes it more interesting is that the bank interest rates are still extremely low.

From the three major domestic auto makers only about half are even offering leases in Canada. Chrysler does not offer any lease in Canada at the moment. GM is offering some leases but only for the Cadillac and Buick brands and not the Chevy or GMC brands. Ford is offering leases on all their cars. However, some rates that GM and Ford are charging on leases are unbelievably high, often times much higher than the import luxury brands. Traditionally, the domestics offered lease rates that were the lowest in the industry anywhere from 0% to usually not higher than 2%. Today, if you want to lease a new Ford Fusion, you are going to get a lease rate around 9%-10%. That’s simply ridiculous.

I’m assuming they are trying to reduce the amount of cars out on a lease which they will have to take back later and try to sell which would decrease their value. Such high lease rates make these normal cars as expensive as import luxury cars. Add to that, the higher residual value that the import luxury cars have versus the domestics and it equates to a very competitive monthly price for a new luxury import car. If you are in the market to lease a new car, I would suggest that you broaden the brands you look at. You may be surprised at what types of cars and brands will fit in your budget.