straight-talk on smart-buy lease balloon payment

kenwowski · 04-28-2008, 04:20 PM

Can someone please explain the process of buying out a smartbuy lease?

I have a friend with a trailblazer. The vehicle is currently worth about 4,000 less than the balloon payment. It was my understanding that balloon payments can be negotiated. Is this true? My friend wants to buy the car but is not going to pay 4k over what it is worth. Are they better off trading it in and just getting something else? Can they trade it in and then buy it back for a reasonable amount?

Thank you for any input

ChebbySalesDept · 04-28-2008, 04:37 PM

It is not negotiable. Either it has to be paid or the vehicle gets turned in and then the dealer has the right to buy it next.

kenwowski · 04-28-2008, 04:44 PM

So I guess the best bet is getting into a new car instead of overpaying for the current car?

ChebbySalesDept · 04-28-2008, 04:46 PM

Yes, that would be the smartest way to proceed.

MalibuMaxxSS · 04-28-2008, 06:20 PM

you can not negotiate the lease end, it is calculated the day you lease your car. nad stays that till the end, is he over milage? cause that will cost him as well..

kenwowski · 04-28-2008, 07:49 PM

Thanks for all the replies guys. I don't think she had a clue she could have negotiated the balloon payment when she got the car and she is having to deal with the consequences now. I'm going to tell her to just get into another vehicle.

GMCdriver · 04-28-2008, 10:59 PM

Keep in mind that if the buyout is thousands of dollars higher then what the vehicle is worth then she is ahead those thousands of dollars vs. anyone that bought the vehicle and paid the whole amount up front.

That buyout figure is simply the amount of the new vehicle price that your friend has not yet paid into the vehicle. If she want's the "rest" of the vehicle she needs to pay for the rest of it as agreed upon at the begining of her term. If she would have arranged to have a lower buyout for the end of her term all she would have really done is made larger monthly payments throughout her term.

I lease my vehicles and this situation is the exact reason that I do.
That buyout figure is what I haven't paid out of my own pocket, it is like I am selling my used vehicle back to GMAC at thousands over it's true market value by just sending it back.

kenwowski · 04-28-2008, 11:22 PM

I didn't look at it that way....it does make sense that way I guess thats why the smartbuy leases were so low

04-28-2008, 04:20 PM	#1 (permalink)
kenwowski 2.5L Iron Duke Join Date: Apr 2007 Posts: 18	straight-talk on smart-buy lease balloon payment Can someone please explain the process of buying out a smartbuy lease? I have a friend with a trailblazer. The vehicle is currently worth about 4,000 less than the balloon payment. It was my understanding that balloon payments can be negotiated. Is this true? My friend wants to buy the car but is not going to pay 4k over what it is worth. Are they better off trading it in and just getting something else? Can they trade it in and then buy it back for a reasonable amount? Thank you for any input

04-28-2008, 04:37 PM	#2 (permalink)
ChebbySalesDept 3.5 Liter V6 Join Date: Sep 2007 Posts: 233	Re: straight-talk on smart-buy lease balloon payment It is not negotiable. Either it has to be paid or the vehicle gets turned in and then the dealer has the right to buy it next.

04-28-2008, 04:44 PM	#3 (permalink)
kenwowski 2.5L Iron Duke Join Date: Apr 2007 Posts: 18	Re: straight-talk on smart-buy lease balloon payment So I guess the best bet is getting into a new car instead of overpaying for the current car?

04-28-2008, 04:46 PM	#4 (permalink)
ChebbySalesDept 3.5 Liter V6 Join Date: Sep 2007 Posts: 233	Re: straight-talk on smart-buy lease balloon payment Yes, that would be the smartest way to proceed.

04-28-2008, 06:20 PM	#5 (permalink)
MalibuMaxxSS 3.9 Liter V6 Join Date: Oct 2006 Location: British Columbia Drives: 2006 Malibu Maxx SS Posts: 784	Re: straight-talk on smart-buy lease balloon payment you can not negotiate the lease end, it is calculated the day you lease your car. nad stays that till the end, is he over milage? cause that will cost him as well.. __________________ "You want free speech? Let's see you acknowledge a man whose words make your blood boil, who's standing center stage and advocating at the top of his lungs that which you would spend a lifetime opposing at the top of yours. You want to claim this land as the land of the free? Then the symbol of your country cannot just be a flag. The symbol also has to be one of its citizens exercising his right to burn that flag in protest. Now show me that, defend that, celebrate that in your classrooms."

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04-28-2008, 07:49 PM	#6 (permalink)
kenwowski 2.5L Iron Duke Join Date: Apr 2007 Posts: 18	Re: straight-talk on smart-buy lease balloon payment Thanks for all the replies guys. I don't think she had a clue she could have negotiated the balloon payment when she got the car and she is having to deal with the consequences now. I'm going to tell her to just get into another vehicle.

04-28-2008, 10:59 PM	#7 (permalink)
GMCdriver 3.8 Liter Supercharged V6 Join Date: Oct 2006 Drives: 2007 GMC Canyon CrewCab 4x4 Z71 Posts: 567	Re: straight-talk on smart-buy lease balloon payment Keep in mind that if the buyout is thousands of dollars higher then what the vehicle is worth then she is ahead those thousands of dollars vs. anyone that bought the vehicle and paid the whole amount up front. That buyout figure is simply the amount of the new vehicle price that your friend has not yet paid into the vehicle. If she want's the "rest" of the vehicle she needs to pay for the rest of it as agreed upon at the begining of her term. If she would have arranged to have a lower buyout for the end of her term all she would have really done is made larger monthly payments throughout her term. I lease my vehicles and this situation is the exact reason that I do. That buyout figure is what I haven't paid out of my own pocket, it is like I am selling my used vehicle back to GMAC at thousands over it's true market value by just sending it back. __________________ The fastest way to kill a thread is a direct injection of verifiable facts.

04-28-2008, 11:22 PM	#8 (permalink)
kenwowski 2.5L Iron Duke Join Date: Apr 2007 Posts: 18	Re: straight-talk on smart-buy lease balloon payment I didn't look at it that way....it does make sense that way I guess thats why the smartbuy leases were so low

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