GMAC no more leases

[gss9909]

Originally Posted by chadrcr

WELCOME to the site.

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The reason GMAC wants out of 'leases' etc: They 'sold' full size trucks and SUVs THAT HAD A TRADITIONALLY HIGH RESALE PRICE..... now the vehicles sold in 2005 are coming back, and the residual value that was calculated at the time of the 'purchase' is no longer accurate, and dealers are stuck with BIG trucks with BIG 'trade-in' residual 'value', and the market has changed leaving the high priced smartbuy returns on the lots or cutting deeply into dealer profits.
If you 'smartbuy own' a 2005 truck and have checked the trade in price... and you happen to want to buy a Camaro??? you would be glad that you had chosen the smartbuy= you are 'guaranteed' a trade in price that you would not have a chance getting with the current market. It will help a few customers, but it will hurt dealers.

Not really it has nothing to do with dealers. Dealers have nothing to do with residuals or thier profit. Smart leases and smart buys go back to the leasing company not the dealer. The dealer does not have to sell those cars, the bank does. The dealer could care less what the residuals are. i take in lease returs on a daily basis, I take the keys fill out the form anf fax it to gmac or who every the leasing company is, park the car out back and wait for them to pick it up.
And since you brought up dealer profit.....I answer that by saying " what Profit". New car profit is extremely low if any, since mark up % is the lowest of any retail item sold in the U.S. and as far as used cars is a double edged sword. Dealers can not find or get used cars cheap enough to sell them for much of a profit as banks are cutting back loan to values of loans, useing black book and or auction data (which much much lower) insted of NADA or kelley blue book to come up with the vehicle wholesale value.

Wow ok I'm done venting... Oh and by the way my store Burt Chevrolet in Parker colorado will be selling the camaro at msrp not over. Lets all hope that the Camaro and the market take off and soar.

[logan1080]

a 30k car over 72 months=416.66 approx per month. pretty cheap guys.

[gss9909]

Originally Posted by logan1080

a 30k car over 72 months=416.66 approx per month. pretty cheap guys.

actaully with no money down at an average rate of 9% payment would be closer to 600 with $500 down for 72 months using taxes of 8.4%

[The_Blur]

Leasing wasn't great for a lot of people anyway. How many of our site members were going to give back their Camaros after 3 years?

[rlg3]

Originally Posted by Vash

Also the vehicles they get back tend to be more beat up and trashed. This makes them sell lower in an already flooded market. It effects brand image. If your driving a leased ride you won't care about spilling coffee, eating, buring the clutch and brakes. Filling coolant with tap water, going a year without oil change etc.

I disagree Vash, most people who lease take good care of the cars, actually they put more thought into the care of the car than people who own, it is one reason I have never leased. I didnt want a dealer picking it apart and charging me fees.

[Vash]

Why do you think single owner is advertised by sellers and people run carfax reports? It effects the overall cost and resale value.

http://www.iht.com/articles/ap/2008/...ian-Leases.php

news, which was conveyed to dealers Monday, follows Chrysler LLC's announcement that its financial arm will get out of the U.S. automotive leasing business by the end of the month. The Auburn Hills, Mich.-based automaker also cited the decline in used truck and SUV values, which means the lender loses money when it resells the vehicle at the end of the lease.
Wholesale prices of used pickup trucks dropped 11.2 percent during the second quarter, while wholesale SUV prices fell 9.6 percent, according to National Automobile Dealers Association AuctionNet data released by the NADA's Used Car Guide.
The decline in values also makes it harder for finance companies to package auto leases as securities and sell them to investors. That means there's less money available to fund leases at attractive rates,

[Anti-Venom]

well like i did with my current camaro i leased it at first, because it was easier to get into with a payment i could afford. and then after a few years i flip the lease to a own plan.

[logan1080]

still, 600 bucks a month for a 422 horsepower car? I would be happy with it.

[Scotsman]

I've always seen leasing as pissing money away. I know some people say buying a car is not financially smart because it's a depreciating asset, and those people tend to lease, but I think most have come to live with the fact.

I HATE the idea of leasing a car, because then it's not really yours and there's all these restrictions you have to comply with or else you're billed excessively at the end of your lease. I want to get in my car and go, without having to think about mileage or any of the other restrictions associated with leasing.

[chadrcr]

Originally Posted by Scotsman

I've always seen leasing as pissing money away. I know some people say buying a car is not financially smart because it's a depreciating asset, and those people tend to lease, but I think most have come to live with the fact.

I HATE the idea of leasing a car, because then it's not really yours and there's all these restrictions you have to comply with or else you're billed excessively at the end of your lease. I want to get in my car and go, without having to think about mileage or any of the other restrictions associated with leasing.

If you do not do all the same stuff (take care or your stuff)... you will lose out when it is time to sell anyway.

There are many people who change cars / trucks every few years.. always keep something new... always have a full warranty etc... the smartbuy gives (gave) them the freedom to not have to worry about trade-in price OR selling a big 4x4 truck in a market seeking civics etc... simple: walk in drop off the keys... and if they have a new Camaro in the right color with the right engine.... you buy it, or you leave and shop somewhere else.

For those who keep vehicles longer, they should not miss leasing / smartbuys as much. It was nice (maybe not wise???) to have the option.

[Scotsman]

^I don't know. I'm just fine keeping a car for 7 to 8 years., but that's me.

[chadrcr]

Originally Posted by Scotsman

^I don't know. I'm just fine keeping a car for 7 to 8 years., but that's me.

I think you are better off to keep it as long as possible... my trucks have just been short term relationships... sometimes I just decide I need a change. I hope to keep my new Camaro forever...

[Scotsman]

Originally Posted by chadrcr

I hope to keep my new Camaro forever...

If I get an SS that's is definitely going to be the case........ unless the wifey says "NO". Still, I'll fight it as much and as long as I can, but she means more to me than any car.

[chadrcr]

Originally Posted by Scotsman

If I get an SS that's is definitely going to be the case........ unless the wifey says "NO". Still, I'll fight it as much and as long as I can, but she means more to me than any car.

Hope she is worth it.... If she is: I could 'settle' for the RS ... maybe throw on some turbos...