Long-term no-interest loans may change how drivers climb behind the wheel of a new car, at least that’s what car dealers are hoping.

GM, Chrysler and Mazda will shift focus from leasing to purchasing with no-interest, long-term loans. Ford is expected to follow suit.

“The bottom line is, the markets are too volatile to guarantee a residual four years down the road,” said Wayne Ricketts, sales manager at Georgian Pontiac Buick GMC in Barrie.

The end of the low-rate lease program is Aug. 1. Leasing will still be available, just not at an incentive price. But in the U.S., the announcement means an end to all lease programs.

While the used car market might have slowed, Ricketts said the local dealer has been busy selling new models to local residents.

“We finance at zero per cent for 72 months now, and anyone can come in and buy an (economical) car,” said Ricketts.

He said at one time, leasing was the popular choice, but with high gas prices and low financing deals available, people are turning to buying their vehicles.

“The payments can be lower than lease payments.”

He said it could mean used cars will cost more in the future, because there won’t be the same turnaround in the market.

At the same time, Ricketts said the announcement gives individual dealers opportunity to offer in-house lease rates to customers.

Janis Ramsay jramsay@simcoe.com