Gmac Lease Return Auctions

[randas]

Long story short, I finally found a truck like I am looking for. Looked it over, test drove, haggled, exct. It wasn't until I said I'd take it that the dumbass salesman realized the dealership diddn't even own the truck

Turns out it was a lease return and was already sold thru the auction.

 

ANYWAYS.. I'm wondering what my chances are of finding this truck forsale somewhere else. From what I understand these auctions are only open to dealers.. So I assume it will be forsale somewhere. Is there anyway to find out where it went? The dealer was no help, just wanted to show me other trucks.

 

Do these lease returns usually stay local or are they shipped around the country?

[98 Z71 SLT]

here's what happens

 

Customer turns in lease; vehicle is then known as a "lease return"

 

Vehicle usually parked in a designated area at dealer lots; far away from vehicles that are actually for sale

 

Dealership management calls/faxes GMAC (for example) on a turned-in lease vehicle

 

Within a few days, lease company sends an inspector to check over the vehicle.

 

A tag-sticker is placed on windshield. Inpected by xxx on this date xxx for GMAC

 

Within a few more days, the vehicle is off to a holding yard, then is sent to local Auction

 

The only reconditioning done, prior to auction, is a detail. No mechanical things usually done.

 

Then the vehicle goes to auction, and will be announced as a Lease Return

 

As far as finding the truck you liked, good luck. It could have sold to a dealer 1 mile from you or 1000 miles from you. A VIN number would me magical in your case---you could call the auction and track it down.

 

Here's what many people don't know...you can purchase a lease return once the previous owner turns it in. But, you have to be quick,and know a few people.

 

First, you have to know if it's a good deal. Many lease return "values"---what is owed on the vehicle----is usually more than what the vehicle is worth. Example---John X just turned in his 2006 Pontiac G6---he still "owes" $12000 (on lease contract) but it's only worth $5400..........this is usually the case...so you surely wouldn't throw $12000 at a car worth $5400

 

Second, you have to be friends with the person at the dealer that calls in the leases. He sees every lease being returned, and he knows what is owed on each one, and usually what each one is worth...

[mike94silverado]

Second, you have to be friends with the person at the dealer that calls in the leases. He sees every lease being returned, and he knows what is owed on each one, and usually what each one is worth...

 

 

 

THis was my Job at a Toyota/Honda/Dodge Dealer. We had first option to buy the vehicles most times the buy out exceeded the value but sometimes we'd get one in right.

 

I know now, Ally puts a $2500 fee on the lease buyout so the likelyhood of being able to do this in a few years is poor.... My 39 mo. buyout with the 2500 is 19,600 for example. an 07 LS with 30k on it isn't going for that much right now. so if things stay like they are I won't be buying mine out.

[randas]

As far as finding the truck you liked, good luck. It could have sold to a dealer 1 mile from you or 1000 miles from you. A VIN number would me magical in your case---you could call the auction and track it down.

 

It was mixed in with all the other used trucks, had a gm optimum used inventory 2008 plate on and had an inventory sticker on the windshield. Hence the mixup. Not sure how the salesman was coming up with a price though.

 

I have the last 8 digits of the vin. Not sure where that will get me.

[mike94silverado]

As far as finding the truck you liked, good luck. It could have sold to a dealer 1 mile from you or 1000 miles from you. A VIN number would me magical in your case---you could call the auction and track it down.

 

It was mixed in with all the other used trucks, had a gm optimum used inventory 2008 plate on and had an inventory sticker on the windshield. Hence the mixup. Not sure how the salesman was coming up with a price though.

 

I have the last 8 digits of the vin. Not sure where that will get me.

 

 

 

autotrader maybe? search for the exact truck then compare vins... worth a try

[leverlution]

What was described above is close. I do the appraisals for a living, after I got carpal tunnel and had to stop working on cars. Here's how it works:

 

Lease vehicles:

 

Customer gets early notice or turns in vehicle at designated date to dealer

Dealer notifies GMAC (Ally now).

Ally/GMAC sends an inspector/appraiser from one of the big companies that work for them.

Appraiser checks the car for frame damage, prior repairs (body work), current damage etc etc etc and puts it all in a computer, along with a bunch of pictures. The process is actually pretty strict according to Ally/GMAC but not really any mechanical stuff is done unless it's obvious.

Computer adds up all the damage etc. and utilizes that plus a few other inputs to come up with a price

Sticker is put on windshield

Dealer puts vehicle somewhere out of the way

Once inspection company sends it to GMAC/Ally, if the vehicle meets the criteria, it is put on www.smartauction.biz (www.smartauctionlogin.com)

Dealers can then purchase vehicle online.

While vehicle is being auctioned online, the dealer/gmac sends the vehicle to a local automotive auction. It used to be easier to figure out which one, but GM is not affiliated with Mannheim anymore. Makes it harder.

Auction reinspects vehicle, details it etc. They are supposed to wait a certain amount of time for it to sell on smartauction but they usually don't.

At this point it is either sold on the internet, sold at auction, or it will just sit in the auction until someone buys it. It's at the discretion of the GM rep what to do with it.

 

Repossed vehicles:

 

Pretty much the same as that brief description above, but they go DIRECTLY to an auction, not the dealer. Still get put on smart auction etc as long as they meet the criteria. Only difference is the customer has the chance to "redeem" the vehicle by paying up all the missed payments or working a deal with GMAC and have the vehicle returned, so long as it hasn't sold on SmartAuction/local auction yet I presume.

 

Most the major manufacturers have some sort of the same thing. Ford's online auction didn't work out real well, think they pulled the plug on that a few weeks ago, but they still sell their vehicles at auction.

 

Also, most the major companies have deals with the rental companies (Avis, Hertz, some enterprise but not a lot etc) and those are also placed in SmartAuction and shipped all across the country to be sold at local auctions if they don't sell on the internet in a certain amount of time.

 

I'm sure I missed something, it's early lol. PM me if you need any more specialized info. It's really much more indepth than it seems. Of course, all the auto companies make just about anything more involved than it needs to be lol.

 

EDIT: Forgot something. Might just be the local auctions here, but all the ones I have worked out so far seem to go this way:

 

Internet/SmartAuction is DEALER ONLY. Gotta have a login from a dealer, or one of the inspection companies to actually look at the vehicle. There is a website to view the condition report, for the people who had the vehicles repossed/turned in a lease, but I forget what the site is. Won't be able to get it until monday, and I'm not sure I am allowed to post it.

 

Local auctions:

Lease returns and rental vehicles can ONLY be purchased by a DEALER with a sales license(or individual with sales license).

Repossessed vehicles can be purchased by ANYONE.

[Z45]

I was at the local GMC dealer having my truck serviced some time back. A car carrier was unloading the last new Buick's one his truck, driver came into the service dept but the manger had stepped out. He thought I worked there and asked how to get to airport. He added that he had to pickup some rental cars to take back to Milwaukee. About a hour+ later I seen the truck headed south with a bunch on like new Impala's on it. I was later talking with a salesman friend who was looking over one of the Buicks he just got and I told him the truck was hauling back rentals. He offered to show me a list of all GM cars in the zone up for auction and the selling prices. He said, the auction was open to GM dealers who got first crack at them, then they were offered at auction to any licensed dealer at the auction. Once the auction was over, any excess cars that did not sell the dealer could just buy them at a auction set price. Some of the prices on the list floor me. I looked up the retail on several and a dealer could make a huge profit on some vehicles.

[leverlution]

Yea, I'm not sure how its done in the rest of the country, but we have the largest CSX distribution center here in MD. So, a lot of the rentals and such get sent there first, then redistributed by truck or train. Lease and repo's though, work as described.

[Z45]

Another note. The salesman said that if the vehicle at the auction was a current model then only a GM dealer carrying that line could get it. re: Only a Cadi dealer could buy a 2011 cadi., none cadi dealer was not allowed to bid on it. Last year models, any dealer could get and they being a GMC-Buick dealer always went to auction and bought lots of 1 yr Chevy's so as to have another GM brand on the lot to sell.

 

I said Milwaukee but it might have been Janesville that that driver was talking them to. The salesman said the GM auction took place in Milwaukee and he went to it monthly.

[Beer Belly]

When my wifes Pontiac GP lease was up (years ago) we were considering buying it out....the buy out was $11,900.....I offered to buy it for $10,000...they would not budge. I told them "You'll probably get $7,000 at auction"....they said "I know, but we cannot sell to you for less than the lease agreement"....wonder why they got into financial trouble