[kenwowski]

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]

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]

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

 

[ChebbySalesDept]

Yes, that would be the smartest way to proceed.

 

[MalibuMaxxSS]

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]

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]

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]

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

 

[irishgermangirl]

I also did a Smart Buy 4 yrs ago and I have less than a month to decide what to do. The problem that I have is that I didn't understand the SmartBuy when I did it, I'm well over my miles, and my EQUINOX is nowhere worth what my balloon payment is. I also have a huge issue with the car which is the heat. I hate this car. I honestly do. What my question is, if I decide to return the car and pay for the mileage, will GM allow me to make payments on what I owe on that mileage? A salesman told me that I could. I wanted another opinion.

Thanks!

 

[AirCleaner]

Yet another upsidedown customer trapped in a 'Smartbuy'. I think you learned a vaulable lesson about affordabilty and residual values at least. Next time, buy what you can AFFORD to pay cash for right there on the spot. You will feel better after driving off the lot.

 

[Mowerpan]

I also did a Smart Buy 4 yrs ago and I have less than a month to decide what to do. The problem that I have is that I didn't understand the SmartBuy when I did it, I'm well over my miles, and my EQUINOX is nowhere worth what my balloon payment is. I also have a huge issue with the car which is the heat. I hate this car. I honestly do. What my question is, if I decide to return the car and pay for the mileage, will GM allow me to make payments on what I owe on that mileage? A salesman told me that I could. I wanted another opinion.

Thanks!

There is a way that you can make payments on your charge for mileage overage. First I would start to look for a new or used vehicle to purchase. Then you can "roll" into the new loan (for a new or used vehicle) the overage mileage charge. Unless you can pay for the excess miles out of pocket this is the route you will have to take. Any decent sales consultant should be able to walk you through the process.

 

[AMERICA 123]

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..

This is or can be considered completely correct or partially correct or in specific instances not correct at all.

It depends.

Sure as written and agreed to - there is no option.

However, that does not prevent one of two things from happening.

The Lessor or equivalent can 'offer' a lower number if they so chose.

The Leasee or equivalent can also 'offer' a lower number.

That last may get handled by a definitive "no" in five seconds or less but sometimes you can start a process that ends up with agreement and execution at a lower number.

In practical terms you almost always need to offer a number above wholesale minus disposition costs for any possible consideration - for obvious reasons.

It never hurts to ask although as I said, you may get a "no can do" real quick.

Also, even if you can start a process you may not be able to come to agreement.

 

[goodwrench1]

I also have a huge issue with the car which is the heat. I hate this car. I honestly do.

Just doesn't blow hot enough, not at all, at idle?