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?
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.
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
Jerry H. -- retired GMC sales manager
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