In a not so suprising move, Wells Fargo and Chase Bank announced they would pull out of the leasing of cars and trucks in the United States.
GMAC has announced a while ago that they are stopping leasing operations in Canada. Interestingly enough, this comes after a little while when Chrysler Financial announced it would stop leasing operations in the United States.
Even more interestingly enough, 51% of GMAC, General Motor’s financial arm is owned by Cerberus Capital, the same people who own rival Chrysler LLC and Chrysler Financial.
Seems like everyone is getting burnt in leasing, with the exception of Wells Fargo, who claims that they are pulling out of leasing simply because there isn’t enough business for them there.
The saga continues, which will only push sales down even further. If I were a betting man, I would short GM, Chrysler and Ford stock right now.
Look for Ford’s announcement to pull out of leasing in the coming days.
