General Motors’ captive financing arm, GM Financial, is providing lease extensions to customers.
GM Financial has offered lease extensions for a while now, with the COVID-19 pandemic prompting new month-to-month extensions, allowing customers to keep their vehicle during quarantine. Now, GM Financial continues to offer lease extensions as the ongoing semiconductor chip shortage impacts available vehicle inventory and customers wait for their new GM vehicle order to arrive at the dealership.
Notably, GM Financial lease extensions do not include an increase to mileage as stipulated in the original contract. Rather, any mileage incurred in excess of the original lease contract term is billed at the rate per mile specified.
That said, customers who purchase or lease a new General Motors vehicle at the end of their lease are eligible to receive an additional monthly allowance equivalent to the original lease agreement. Those customers who do not finance their new GM vehicle through GM Financial are asked to contact GM Financial to request a mileage waiver.
Note that a lease extension does not change the residual value of the vehicle.
“We are committed to working with each of our customers to find a solution that meets their specific needs,” Jake Stevens, Public Affairs, Marketing and Communications for GM Financial, told GM Authority.
The lease extension policy was initially updated in response to the COVID-19 pandemic, but continues to be updated as circumstances dictate, such as with the semi-conductor chip shortage.
The global shortage has affected the entirety of the automotive industry, impacting production and availability of various vehicle options. General Motors has focused on continued production of its most popular vehicles, including its full-size SUVs and pickups, implementing a “build-shy” strategy that keeps production facilities operational, while stockpiling unfinished vehicles waiting on additional supply of the much-needed semiconductor chips.
Previously, GM Financial implemented month-to-month lease extensions in response to the COVID-19 pandemic, allowing customers to continue their lease to insure they have a vehicle available even through the closure of several dealerships.
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Comments
I would probably look for the best lease deal,buy the old lease car and sell at a profit.
I just wanna know when exactly new vehicles will be in the dealerships.
This is sad to say the least. My neighbors are extending the lease on their Ford and Ford credit is giving them a 1000 mile allowance for every month. Leave it to GM financial to not give a mileage allowance. What’s the point!?!?
my account number is 112027481961, my lease is up i believe the first week of august. if i want to extend the lease, what would my monthly payment be? at present time i have approx. 19,500 miles on my car. please advise. best regards, larry levine
It’s still not very equitable if the residual value does reduce incrementally. Fair would be go have program to allow this type of extension. GMF has had a year to figure it out. Fairness and value is what brings back customers, versus holding them hostage.
If they were to re-analyze residual value,they would have to increase it 20 to 30%
It’s still not very equitable if the residual value does not reduce incrementally. Fair would be go have program to allow this type of extension. GMF has had a year to figure it out. Fairness and value is what brings back customers, versus holding them hostage.
It’s still not very equitable if the residual value does not reduce incrementally. Fair would be to have program to allow this type of extension. GMF has had a year to figure it out. Fairness and value is what brings back customers, versus holding them hostage.
Wow talk about a Horrible! program. I have extended my FORD lease by 4 months so far … same monthly rate plus extra mileage allowance AND an extended B to B warranty. Get my new F150 next week. Way to go GM Financial, if this doesn’t drive existing customers to the competition, I’m not sure what would.
i lease a cts my 5th caddy i plan on leaving caddy because they wont have an affordable e sedan in next 12 months when my lease ends
too bad they dont extend leases for sedan owners till they are back in sedan business with e product