DEARBORN — After a pricing competition that has hurt dealerships’ bottom lines, GM and Chrysler have suspended leasing programs for many cars across the country.

Local sales consultants say that the problem has become as big in Michigan as it has anywhere else, if not worse, because of the prevalence of leases leading to big losses. But it also is a nationwide problem.

“‘It was a strange decision, they never really said any announcement, all we know is that GMAC had posted $2.5 billion loss directly involved with leasing,”‘ said Sammy Cheito, a sales and lease consultant at Superior Pontiac Buick on Michigan Avenue in Dearborn.

But despite the abrupt decision, Cheito said he knew something was bound to change because of how low leasing prices were becoming and how few people were buying cars.

“I’ve been in this business since 1981 and it puzzled me when I saw (the Chrysler) Pacifica going for 90 dollars a month,” he said. “Something (was) going to give, you can’t lease it for that price and expect to get the 18,000 dollars for it.”

Leasing vehicles is particularly popular in the Arab community, especially with large family vehicles like SUVs. Cheito said people are in disbelief over their inability to lease vehicles in his Pontiac department. The only vehicle offered in his department for lease is the Pontiac G6, a mid-size car.

“I think people are still in shock right now and not believing that GM would stop leasing, so they’re kind of waiting to see whether they will go back to leasing,” he said.

Cheito said that around 95% of his business came from leasing and now things have basically “come to a halt” in the wake of the decisions. Meanwhile, Ford is still offering leasing programs, but leasing prices on SUVs have been raised.

In response, more Arab customers at Fairlane Ford on Michigan Avenue are turning to smaller, more fuel-efficient cars instead of SUVs because of more leasing options and smaller prices.

“In the past month, the number of SUVs leased to Arab families has gone down,” said Mike Bazzi, a sales consultant at Fairlane Ford. “Right now they’re cutting down to cars but I don’t know how they’re managing that (in terms of the size of vehicle needed for a large family).”

One vehicle Bazzi recommends to large families or people who want to feel safe driving in the snow is the Ford Flex. Leasing prices on the Flex are relatively lower because it is a popular new vehicle that Ford is trying to get out on the streets in order to create a buzz around it.

While leasing prices might be higher on Ford SUVs, Bazzi warned customers not to take the option for granted because it might not be around for long.

“Whoever wants to get a lease, they should get it, but I believe in six months to a year if Chrysler and GM did it this way, I think Ford is going to follow. That’s just my personal opinion,” he said.

Despite the lack of leasing options now and with the market pot entially getting worse in the future, Cheito stressed that all is not lost for customers looking for a good car.

“Right now to buy is really good,” he said.  “GM is putting a lot of incentives on buying and to be honest with you I really don’t think we’re going to go back to leasing. So what I’m thinking is it’s going be a shock and take 2-3 months before people realize leasing is gone then go back to buying.”

Cheito also talked about how imports have cut into American companies’ markets and how he is worried that the trend might get even worse with the leasing issues at GM and Chrysler in particular. Leasing is still popular at many import company dealerships, although American cars are much more popular in the Detroit area than they are in other places across the United States.

“If the imports are going to keep leasing, we’re going to see a lot of loyal GM buyers or lessees switch. That’s what I’m scared is going to happen, so hopefully the imports are going to not lease or also raise their prices,” he said.

Despite the difficult outlook, Cheito plans to see things through.

“I’m not abandoning the ship yet, I’m going to stick around,” he said.