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| Automotive Discussions Car People talking about the Car Business – This is the place where it happens |
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06-20-2008, 09:24 AM
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Administrator
Join Date: Nov 2007
Posts: 14,869
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Ford and GM may take huge write-down on Lease Portfolio
Automotive News is reporting that Ford Motor Credit and GMAC may have to take huge write-downs due to their weakening lease portfolio.
As the wholesale value of Trucks and SUVs plunge, Ford Motor Credit and GMAC must re-evaluate whether the residual value still matches the value of the vehicle if it were to be sold at auction. Ford Motor Credit and GMAC were cited as being most vulnerable because their lease portfolio is heavily weighted toward Trucks and SUVs. It will be interesting to see how this will affect the current leasing programs in the near future. My bet is that Truck and SUV residuals will take a big hit in the coming months making leasing a less attractive option. |
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