Question about the SmartBuy program

[cs1992]

I have read the SmartBuy program information on the GMAC website, but I have a question about the end of program options. It appears that the customer has the option of selling the car or simply turning it in. If, at the end of the term, a buyer wants to continue the program (and keep paying the same monthly payment) does the buyer have the option do so? In other words, can a buyer choose to extend the program once the agreed to term is over?

[MalibuMaxxSS]

no you buy the car for the value at the end of the lease. and finance that amount thru a bank or or whatever of your choice....if someone wants to buy it, they buy it for the end lease value, or more if you want......

If you want the same monthly payment just turn it in and get a new one, generally the lease payment will be the same on a new one, or somethimes even less, then what you were paying on your current lease....

Smartbuy?....guessing its the same as smartlease...what we call it in canada.

[ChebbySalesDept]

Check with your local dealer. Smartbuy is no longer available in NY. Only a Smartlease.

GMAC will not extend a Smartbuy. You must borrow the money and:

a)finance it thru GMAC

b)get money from another source and pay the balloon to GMAC.

In New York they waived the $250 disposal fee on all Smartbuys (when they replaced Smartlease for a time). If you give the car back you may other expenses such as excess wear and tear so be careful.

Chebby______

[cadillacricket]

Originally Posted by cs1992

I have read the SmartBuy program information on the GMAC website, but I have a question about the end of program options. It appears that the customer has the option of selling the car or simply turning it in. If, at the end of the term, a buyer wants to continue the program (and keep paying the same monthly payment) does the buyer have the option do so? In other words, can a buyer choose to extend the program once the agreed to term is over?

One thing to remember is what your intentions are if you plan to buy it out and "continue making a monthly payment" on the car... Think through the scenario this way...

Say for numbers sake the sale price on the car is 20,000 and the residual amount after the term is 10,000.... When you come back in in three years, you simply look at the auction value... (assuming you met the terms of the smartbuy program)

If the auction value is 10,000 or more then that basically means you get to buy the car for what the dealer would buy it for on the current open market... That has to be a good deal... (remember that if the wholesale value it 12,500 the dealer may be interested in it)

If the auction value is less than 10,000 then you aren't buying it for "wholesale" and then it's up to you on how good the car was and how long you think it will last.. If you decide to keep it, you should ask the dealer to arrange financing for you...

Either way you don't have to haggle with the salesman about the trade value... And you might be eligible for pull ahead programs at the end of your lease (if you intend to trade into another)

The only real caution is in exceeding the terms of the smartbuy.. Don't go over on the miles, don't damage the car if at all possible, don't miss payments, Don't go into a contract that is longer than you intend to keep the car, and don't get a smartbuy if your lifestyle has a tendancy to change drastically... If none of that applies to you than there aren't any other drawbacks... You can't lose, so to speak..

Otherwise, if you are content in making a low payment and trading into a new car under warranty every few years.. I way go for it...

[jfnz24]

I thought that SmartBuy was higher payments during the life of the loan, so that at the end, you own the car (no more payments to "close out" the loan)?

[cadillacricket]

Originally Posted by jfnz24

I thought that SmartBuy was higher payments during the life of the loan, so that at the end, you own the car (no more payments to "close out" the loan)?

No, I am not aware of GM having a program like that, unless you count 36 month traditional financing instead of 60 months as a special program...


Actually the 36 month smartbuy will have a mcuh lower payment that a 36 month traditional financing purchase.... The difference is the garaunteed value at the end...

[ChebbySalesDept]

Originally Posted by jfnz24

I thought that SmartBuy was higher payments during the life of the loan, so that at the end, you own the car (no more payments to "close out" the loan)?

That actually wouldn't be a "smart buy". That's called a normal retail finance contract.

A lease or balloon deal with a $1 buyback is probably what you mean. The only purpose of that would be potential tax write-offs due to higher monthly expense.

[caddycruiser]

SmartBuy is just a lease, with a different name, so at the end if you want to continue with payments...your only real choice is to get a regular car loan on the now used vehicle, for the remainder amount, at whatever payment that works out to.

You can't just continue them further, as it's a lease for a certain period. Want to do that, finance with a longer term, or lease/Smart Buy and get a used car loan at the end--the issue with the latter is resales not being equal to the remainder owed at the end, and people having trouble getting those loans.

Hence why most leases & Smart Buys just get turned in, and that's that.