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.