End of Lease Purchase Strategy

I have received a letter from GMAC advising me that my Smartklease will expire near the end of January, 2004. I do want to buy the vehicle but don't want to pay the amount specified in the lease, which is roughly $26,500. The
vehicle is a 2001 Chevrolet Suburban LT. How can I best negotiate with GMAC for a lower price?
Thanks.
John
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
It depends on what type of wear is on the truck. If there is high mileage and damage, then the resale value will not be worth much to GM. If it is in good condition then you might have trouble negotiating. Get the book value on the truck, leasing is done by estimating the resale value of the truck in advance. I thinks its straight line depreciation. Your paying interest plus the value of the depreciation for X years (2 years in your case).
You can always re-lease it. And the buy out will of course be less when this lease is up.
Good luck

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Ok John, is it a straight Lease or a Smartbuy? If it is a straight lease, and you are not over on your miles, you simply walk away from a GMAC lease. The $26,500 figure is the residual, the buy price if you want to purchase the truck, which you have stated that you don't. If you are over on the miles, you simply owe the amount of excess miles X the amount per excess mile that is stated in your lease agreement. Leases are usually written for 12,000 or 15,000 miles per year. The charge for excess miles can be anything, but usually around 15 to 18 cents per mile. If it is a smartbuy, the options are entirely different, to lengthy to explain here. For all your options, go to the dealership that you bought it from, ( or any GM dealership you feel comfortable) and see the finance manager, NOT a salesman. (They generally won't know much about this). Let us know how you turn out.
Jerry H. -- retired GMC sales manager

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
By the way, it is too late to negotiate the residual. Anything this close is set in stone with GMAC.
Jerry H.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.