Automakers take major loss SUVs that were leased three years ago.

On Friday, Chrysler announced that due to plummeting prices of SUVs and trucks, they will no longer be offering leases on new vehicles. The vehicles just simply aren't worth very much after the end of the lease. Wells Fargo, one of the leading financers for auto leases, also announced that due to the plummeting prices of SUVs and trucks they are exiting the auto leasing business.

"In the last six months or so, a lightning-fast consumer shift away from SUVs and trucks to fuel-efficient cars has slashed the residual values of large vehicles, from more than 50% of new-car value on three-year leases to the low-30% range in the last year." (this means a 50K SUV is only worth 15K after 3 years)

Ford Motor Credit's $2.1 Billion write-down was largely the result of the collapsed residual values of gas-guzzlers such as the Expedition and Lincoln Navigator, and Wall Street analysts expect both Ford and GM to write down in excess of $1 Billion more on leases before 2010.

Meanwhile, Asian carmakers, including Toyota and Honda, which have product mixes that favor small sedans with better mileage, have seen residual values hold steady and in some cases rise. (Prius)

Gas prices take a toll on car lease business - Los Angeles Times