Gm Leases

gbgbgb · July 29, 2008

Is there anyone whose lease is ending or recently ended that would be willing to speak to me about the experience for an article I writing about GM? I am a reporter with a financial newswire.

As you know, GM is ending leases in Canada and Chrysler stopped them altogether, so there is concern that GM will stop them in the U.S. too.

cc1999 · July 29, 2008

I have done the smartbuy's for years, I had one end last year and its replacement will end next June. I do the 24 month versions.

pchrist · July 29, 2008

I have a lease on mine and would be looking to get another one. If they get rid of of leases not sure what i will do.

Bummer to hear that they might get rid of them.

Oh well

99silverado1500 · July 29, 2008

I think they loose too much on leases, its not worth it for you to buy it at the end of the lease, and then again they cant get out of it what they need to after a lease and usually people beat the crap out of them, and put to many miles on them so they arent worth what they anticipated they would be at the lease end.

Fireman Ed · July 29, 2008

I just leased my 08 Sierra Crew, the sticker was $32k, and after my GMS, and all the rebates and everything they want it to be worth $24K at the end. They are screwed. But I have a nice truck to drive for three years before I have to change.

I take care of my vehicles, so it will be in nice shape at the end, but nowhere near the value they want it to be worth.

zxcv · July 29, 2008

I just leased my 08 Sierra Crew, the sticker was $32k, and after my GMS, and all the rebates and everything they want it to be worth $24K at the end. They are screwed. But I have a nice truck to drive for three years before I have to change.

I take care of my vehicles, so it will be in nice shape at the end, but nowhere near the value they want it to be worth.

Not to be a stick in the mud or anything, but you'd pay the same amount if you financed your truck in the first place.

I'm leasing my truck at 0.9% interest, so I'm basically paying off the value of the truck over X number of years, with the option to either buy out or get rid of the truck at the end of the lease. I'd end up paying the same total amount for my truck if I financed it.

However, I'm really happy I did lease my truck, because my lease is up in 2 years, and who knows - maybe a camaro, maybe a 3/4 ton, maybe a 1/2 ton diesel (fingers crossed!)

I know BMW and Chrysler have the finance option with deferred/low monthly payments and then a "balloon" payment at the end of the contract. It's pretty much the same as leasing, except you are locked into buying the vehicle....which will help out sales in the long run if I'm not mistaken.

soludsnake · July 29, 2008

The thing about leasing right now is that in 2 or 3 years, who knows what the value of the trucks are going to be worth (mainly based on the gas prices). By leasing your truck, in 3 years, gas could be sitting at $2/L (I'm Canadian) leaving the average person not interested in owing a truck. Now had I financed the truck, now I'm locked in to double the duration of the payments so that I can still afford it on a monthly basis. In 3 years if I chose to sell the truck, the value of it could be considerably less then originally thought and you would do nothing but loose more money on the truck seeing as how the average person could simply go out and buy the same truck new for far less then you originally payed.

Now since I leased the truck, in 3 years it doesn't matter what the truck is worth! If I don't want it then I return it to the dealership, no if's and's or but's (assuming you didn't destroy it to the point the dealership wants compensation for the damage).

Now I'm not saying that leasing is fault proof, not in the least. The truck isn't yours, your renting it essentially from the dealer. Your limited to what can be changed and modified based on the dealers regulations for return of the truck. But at this point in time, leasing a truck only seem like the most logical choice (IMO) based on the way the truck market it going. Way to many drops in value and changes in gas prices for me to feel secure locking my self in to owning on 6 years down the road. I will always be a truck guy and would love nothing more then to officially own one, but if it take on a monumental loss in 3-6 years because gas prices are just far to high to justify driving then I'm in a position that I don't want to be in.

This is just my opinion, everyone has one.

By the way, I have never officially said 'Hi' to the forum as I'm new so.... HI!

Ranger · July 29, 2008

I would've been leasing my last couple trucks, but I drive too many miles a year for it...If I still had my Colorado I would've had 52k on it now and it's only supposed to have about 45k max at trade in time, but of course I haven't kept a vehicle past 20k yet.

cc1999 · July 30, 2008

Its like working with a net, if the truck is worth more you can buy it at the end and sell it or if its worth less than the residual, which it always seems to be worth much less than the residual vaule you can turn it in. In the case of the Suburban I have now, there is no way on earth I would have bought it, they had the Residual set at over 38 grand after 2 years and 24,000 miles. Its real world trade in value at the time I had calculated it to mabe land in the high 20s, 10 grand less than the guarantied value (The Residual 38K). If I would have bought it, I would have lost an extra 10 grand. Leases work great, and if they take them away, I will look at othere companies that still offer them. Its that simple, I am not about to pay 40 grand for a truck and 2 years later have it worth 20 or less. I will go to what ever brand still offers decent lease deals. Its even more criticle when you like them loaded, those options don't mean much more than 10-20 cents on the dollar when trading them in, but on a lease you are guarantied 50cents on the dollar or what ever the residual factor is stated at.

frogbiscuit · July 30, 2008

I leased a car once (not a GM) and ended up part of a class action lawsuit when they tried to charge me a bunch of fees at the end of the lease when I would not buy the car back. I will never do it again.

soludsnake · July 30, 2008

I leased a car once (not a GM) and ended up part of a class action lawsuit when they tried to charge me a bunch of fees at the end of the lease when I would not buy the car back. I will never do it again.

What type of fees? Damage fees?

cc1999 · July 30, 2008

I have never had a problem with a GMAC lease. They have never charged me a single fee, and we have leased at least a dozen trucks and SUVs from them over the years. Now some friends of my did something similar but the dealership put there deal through some other leasing company, and not GMAC, and they did have to fight over ever little detail. It really depends on who you are leasing from, the mfg, or some bank that could care less about your repeat business.

soludsnake · July 30, 2008

I have never had a problem with a GMAC lease. They have never charged me a single fee, and we have leased at least a dozen trucks and SUVs from them over the years. Now some friends of my did something similar but the dealership put there deal through some other leasing company, and not GMAC, and they did have to fight over ever little detail. It really depends on who you are leasing from, the mfg, or some bank that could care less about your repeat business.

This is true, generally if the vehicle is new it a GMAC lease. Used tends to be through banks. They differ in their standards for return of the truck.