Warning: Don't EVER Lease from GM

Check this out.
I leased a 2004 Pontiac GTO. At the GM car dealer I bought GM gap insurance, and was told that GAP insurance would make sure that I
didn't owe any money on the car if it was totalled. Well, guess what? The car was totalled, and GM GAP insurance through GMAC on a GM Car was NOT enough to pay the lease, so pretty much I get stiffed with a giant bill while I'm trying to make a payment on a car that replaced. Keep in mind that the whole GAP process is completely unaccountable and outsourced to India. There's no tracking, no confirmation, nothing.
There's no one to talk to there about WHY this took place. The only answers I could get were bureacratic nonsense and shuffling from one number to another. What's up with that? I tried to talk through with this to GM, and, all they did was run me around from one department to another, but at the end of the day, they basically broke their word on the GAP coverage, and left me with a giant bill.
GMAC already has the WORST customer service simply by virtue of it not having a web based payment system, and, they lied to me. I'll never buy another GM car again, or at least not finance through them, simply because they lied to me about what GAP was about, they shuffled me around endlessly, and then still stuck me with a giant bill at the end of the day.
I hope everyone at GMAC rots in h-ll.
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Read your contract. IF indeed GMAC violated that contract, as you profess, you can start litigation. There are hundreds of lawyers ready to take you case.
mike hunt

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Stork replied to:

Dude, that's the whole problem with GM. You walk into the dealership, everyone's waving the flag at you, and the dealer says one thing and the contract says another. Why can't I have a car company where I don't -have- to read the contract? I just want an honest business, that's all.
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Dude YOU signed that contract.
mike hunt

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You sound pretty upset, let me see if I am understating your situation.
1. You wanted a Pontiac GTO, so you leased the car. 2. You got talked into buying "Gap insurance" 3. You wrecked your car for a total loss. 4. The Gap insurance, in accordance with the contact, did not cover the complete Gap.
You are still a lot better off with the Gap insurance than without it, Right?. It did pay out more than you paid in, didn't it? If you can get taught to read the contract instead of going by the salesman pitch, and still come out ahead, I think you should drink a beer and calm down. The only way you should be upset is if you wrecked the car on purpose because you thought it was covered by insurance, (Fraud) or if you would not have bought the car in the first place if you had known the Gap insurance would not have paid it in full. Is either one of the correct?
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No, it was just that I was under the impression that the Gap insurance would cover the full value of the car, and it didn't. Did it help, yes. But, I just don't want to pay the $1000 shortfall.
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The 'difference' you have to pay $1000! That's it! The way you were going on in the OP was like you had to pay 'a few thousand dollars.'
Suck it up, $1000 is nothing for someone who can afford to be leasing a GTO.
Steve
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I'll bet it's listed as a deductible in the policy. Don't know for sure, 'cause I haven't seen the original document, but I sure wouldn't be surprised.
--

-Mike-
snipped-for-privacy@alltel.net
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Now that you mention it, sure does sound like an insurance deductible. I think the pieces are starting to come together.
Steve
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I understand that, but since you did come out ahead by having the gap insurance, I think you are over-reacting a bit. Depending on how much you actually saved by having the gap insurance, I would think you would want to have it again should you decide to make a similar deal in the future. Out of curiosity, how much did it cost and how much did it pay out?
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<SNIP>
I'm with Mike on this one. If you signed a contract for both the lease and your insurance policy, there is probably explicit details about how the value of your vehicle will be determined in the event of a 'write off.'
While it really sucks to total your car and then still have to pay out of pocket for the remaining balance of the lease, that's the way it is. NO insurance company would ever pay more than the 'book value' of your vehicle.
If you haggled and got a really low lease payment, you were doomed from day one. Having a low lease payment on a high depreciation rate vehicle is asking for trouble.
Correct me if I'm wrong, but leasing is gambling. The leasing companies are betting that the buy-out price is going to be a lot less than the value of the car, and you are gambling that the buy out is going to be a lot higher than the value of the car. In this case, you won, but you smashed it. ;(
Lesson learned, ALWAYS take what a salesman says with a grain of salt. http://en.wikipedia.org/wiki/Grain_of_salt
Steve
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How did you EVER sign a legal document withot reading it first? A co-worker of mine lost thousands to a Honda dealer in a similar scam.
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% "So why do I drive a big SUV? It's because I have to haul numerous people and things to places." ~ R. Lee Baxton ~
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snipped-for-privacy@webtv.net (Rich B) wrote:

You're in dream land if you think you can read and understand those legal docs before reading them. Then there is the vagueness put in those docs on purpose that cause the problems. Before signing I scan read all Docs and sometimes I read those docs in detail late. It takes hours, and have not found one that doesn't have loop holes favoring the seller.
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The leasing company is hoping that the residual value is accurate so that when the vehicle goes to auction at lease end they do not have to file a residual value insurance claim. Leasing companies are not in the leasing business to make money on the sale price of the car at the end of the lease. A good thing about a closed end lease is you can walk away from the lease at lease end if the car is not worth the buyout, if it's worth a lot more you can buy it and resell it and pocket the cash.
Everyone should always take the time to read their contract, if you don't, then the fault lies with you when things turn out differently than you expected.
When leasing a vehicle, you should also take the time to compare what the dealer is offering with 3rd party leasing companies such as www.leasecompare.com . A lot of people don't know that you don't have to lease from the dealer.
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snipped-for-privacy@storkyak.com wrote:

Sounds like you either failed to read the contract, understand it, or did not get out your calculator and figure the costs for yourself, or have your attorney read the contract before signing. It may have been a costly lesson but I bet you won't make that mistake again!
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How does one " total " a $34,000 car that's barely 2 years old ?
Harryface
05 Park Avenue 34,856 91 Bonneville LE 306,078
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> On 3/2/2006 1:49 AM ... Harry Face wrote:

Repair costs exceeds the residual value OR the damage is not reparable.
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Did you actually read the paperwork you signed? I'm not saying that to imply you got what you deserve or anything, but this day and age you just have to watch out for #1. No one else will. Sorry your deal wasn't what you thought it was.
On 1 Mar 2006 10:14:47 -0800, snipped-for-privacy@storkyak.com wrote:

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Stork replied to:

No, Sgt., you are absolutely right.
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snipped-for-privacy@storkyak.com wrote:

I had a GMAC extended warranty on my '95 Chrysler. I had no GMAC claims, because good Chrysler covered the few significant problems, even beyond the 5 yr warranty. Just before the extended warranty expired the gas struts on my hood gave out. According to the GMAC docs they should have been covered, but they resisted and said no. I kept at them, through my Chrysler dealer and finally GMAC gave in. They must have given some intelligent thought to the small strut cost and the time I was taking them, plus they made almost pure profit on my coverage.
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