Just A Little Peeved At Gm

[ILH]

I don't think this fits into any of the other topics -so I'll put it here.

 

I'm just a bit peeved at GM right now. I'll start by saying that I've been (and continue to be) a loyal GM buyer. My current lease is up in January '10 and I REALLY want to buy my vehicle - but the residual value on the lease is absurd. GMAC won't even talk to me - its residual value or nothing. That wouldn't bother me so much, except I have a wheelchair lift mounted in the back of the SUV and it will cost me money to have it removed - and remounted on another vehicle. All I want from GMAC is to buy the vehicle at a reasonable market value. They'd get their money (just as much as they will when they sell it at auction) and I'd get to keep the vehicle that I've cared for over the last 4 years.

 

The inflexibility of large organizations is incredible - instead I'll be turning the vehicle in to the dealer. They'll be selling it below the residual value to someone else and I'll be walking away.

 

There... I've said my peace.

[ILH]

I hear ya... but keeping existing customers happy has to be a top priority too... otherwise I'll just take my money and cross the road to the other dealership.

[snarkee]

If GMAC will not move on my wifes torrent buyout when her lease is up, I will turn it in and buy something used. There is no way they will get what the buyout is from the auction.

[MS3DALE]

Actually your "pev" is with GMAC,not GM,GM doesn't even own majority stake in GMAC anymore.

[MS3DALE]

Actually your "pev" is with GMAC,not GM,GM doesn't even own majority stake in GMAC anymore.

 

You mean the government owns GMAC too? Actually GM still still owns 9.9% of GMAC. GMAC got a 5 billion bail out so the tax payers are bag holders...I mean share holders.

 

 

9.9% is not much ownership,No matter what.....his issue is with GMAC,Not GM.

[VMax2007]

If GM took the approach of keeping customers happy they would not have driven them selves into bankruptcy.

 

[Nytemare]

Here's what you do.

You bring it back to the dealership...and walk away, with the owners card in your pocket.

Than tell him that you want the vehicle back, but wont pay what GMAC wants for it. Than proceed to tell him that you will buy the vehicale back off them for a fair price, comparable to what they and others would sell that vehicle for.

 

The guy would be stupid not to go for that....it will be much more than it would fetch at auction...and you get your discount...you could even set it up with him beforehand and not even remove the lift.

 

 

Its a Win Win.

[d3athsong]

I've never leased a personal vehicle before, so maybe it works a little different then stuff I have leased. Is the buyout price at the end of the lease term not in the contract? Or is it a number they come up with when the lease term is up?

[Nytemare]

I've never leased a personal vehicle before, so maybe it works a little different then stuff I have leased. Is the buyout price at the end of the lease term not in the contract? Or is it a number they come up with when the lease term is up?

From my understanding its in the contract. That's what they base the lease price on.

[Bowler807]

When the lease was up on my 06 Sierra Crew Cab I tried to buy it. This was at the beginning of the financial meltdown. I also wanted to negotiate with GMAC. I was told that it was the residual amount specified in the contract or no deal. I pushed to find out why. What I learned was that GMAC bought an insurance policy on the value of my lease. If the value of the vehicle was below the residual listed in the contract, the insurance would cover the difference.

 

If this is actually true, that explains why they won't negotiate. If they accept something other than the residual, I would suspect that the insurance would not cover the difference thus costing them money.

 

With the incentives at the time I bought my 08 Sierra Crew Cab equipped better than my 06 for less than the residual was on my 06 .

[snarkee]

when my parents grand prix lease was up they got it for $1700 cheaper than the buy out.....I know of a few more people who were successful in reducing their buyout, while I know many others who were not.

[d3athsong]

From my understanding its in the contract. That's what they base the lease price on.

 

 

That's what I thought but wasn't sure.

In that respect, I don't really see a problem with what GM or GMAC is doing. They are just trying to get you to finish paying new price for a vehicle you had since new. They didn't arbitrarily come up with the buyout number. You knew full well what the buyout was going to be when you leased the vehicle at the start.

[rodram]

... I am right in there with saskfarmer ... maybe because we are all freezing our asses off this week!

... the buyout prices are set in the contract ... you signed it!

... the lease payments are calculated based on the depreciation from the full selling price down to the buyout price, and whatever interest rate applied to the contract over the length of the contract

... if you wanted a lower buyout price at the end of the contract, that can be arranged when you set up the lease, and then the lease payments are higher

... it is just financial number crunching

... the high buyout prices are a function of GMAC (and other leasing institutions) trying to be competitively cheap on the monthly lease payments

... had the same trouble with Toyota 10 years ago

... GM, GMAC, and the others are all there to make their profit

... if you don't like it, then pay cash or borrow from your bank to buy it

 

BOTTOM LINE IS .... IF YOU DON'T LIKE THE BUYOUT PRICE, THEN YOU MUST HAVE HAD A PRETTY GOOD LOW LEASE PAYMENT FOR THE PAST FOUR YEARS!!!!!

[SoCalChris]

I'm just curious, but why would you lease a vehicle that you know you'll need to make a fairly major modification to, knowing that you'll likely have to undo that modification when your lease is up?

[Nytemare]

I'm just curious, but why would you lease a vehicle that you know you'll need to make a fairly major modification to, knowing that you'll likely have to undo that modification when your lease is up?

Its a way of getting a vehicle you need for a payment that you can comfortably afford. Than when the lease is up people usually buy out and have a very similar payment for another few years...but now with the 72 and 84 month financing....leasing is really only beneficial to businesses.

 

Most people lease for 3 years and buyout for 4 more years...keeping the payments within 50 bucks of each other... or 4 year lease and 4 year buyout where the buyout payments are actually lower.

But with the new financing....there is no need for that...especially as its 0% for 72 months on all 09's right now.

 

Businesses use leasing as the whole payment, and taxes is a 100% write off, rather than just writing off the depreciation of a vehicle thats financed.