GM says "NO" to Consumers

[Bruce Nunnally]

No Down Payment, No Security Deposit, No First Payment, No Money Due at Signing

DETROIT - General Motors Corp. today announced its latest marketing program, "The GM Sign & Drive," which runs from February 7 through March 31, 2004. Qualified lessees are eligible for these GMAC SmartLease 48-month leases that require no down payment, no security deposit, no first month's payment, and nothing due at the signing of the lease other than tax, title and registration fees. Most 2004 GM cars and light-duty trucks are included in this program.

"'GM Sign & Drive' is a great deal and pretty simple, too," said John Smith, group vice president, GM North America Vehicle Sales, Service and Marketing. "In fact, this might be one of the easiest ways yet for consumers to get behind the wheel of a new GM car or light truck with very attractive leases. With the launch of this new program, and the availability of ‘24-Hour Test Drive' and ‘Hot Button,' there are now three good reasons to visit a GM dealership."

"24-Hour Test Drive" gives consumers an opportunity to take a vehicle home overnight and runs through March 15. "Hot Button," which is the largest vehicle giveaway in a two-month period, provides consumers the chance to win one of 1,000 GM cars and trucks, runs through February 29.

Examples of lease payments for qualified lessees include a 2004 Grand Am SE for as low as $199 a month, a 2004 Chevrolet Malibu at $229 a month, a Buick Rendezvous at $299, and a GMC Yukon SLE two-wheel drive for as low as $429.

Some of the products excluded from this program are HUMMER H1; some Oldsmobiles; Saturn ION 1, Red Line models, and L Series; Cadillac CTS-V, selected models of the Chevrolet Cavalier and Pontiac Sunfire, and some vans. "The GM Sign & Drive" is not available in the states of New York and Rhode Island, although attractive SmartBuy programs are available in those states as well as Texas.

A national advertising campaign including newspaper advertising begins on February 8.

[tjtjwdad]

Has anyone this board ever leased an automobile? These deals sound really good. But ... I have yet to see a something for nothing deal yet WRTanything! Where are the trade offs and pit falls?

Jim White

[Bruce Nunnally]

Here are the things that come to mind:

Dangers to watch for are if the mileage per year planned is less than you drive -- for example if the lease deal is for 12,000 miles per year, and you drive 15,000 miles per year, there will be an additional charge for the extra miles.

If you wreck the car during the lease period, or it is stolen, the amount your insurance may pay to replace the car could be less than the valuation by the lease company, leaving you with no car and still making lease payments. This can be addressed by "gap" coverage, which insures that you don't get left holding the bag.

There are additional charges for wear and tear beyond what the lease company considers reasonable (none?).

Any modifications you make to the car will need to be un-done and the car returned to stock before you return it to the lease company.

Generally, if you want to drive a car for 3 years or less then get a new one, a lease may be cost effective for you. If you want to OWN the car, and drive it til the wheels fall off, so to speak, it is more cost effective to buy.