GMAC Resumes Car Loans To Customers With Lower Credit

[bolteon593]

Originally Posted by XAnimal

Leasing a car makes as much sense as sticking a fork in a electrical outlet

woah there turbo...


you might want to start thinking a bit outside your own personal situation.


leasing just like financing has it's place and purpose. you might not need it or have a use for it's benifits; but others might.

financing is fine if your going to keep the car for decades on end, but at some point it also means paying for repairs and parts.

leasing can be a very useful tool if you can use the cost of your lease as a deduction for your tax purposes, i for example will be using my 2ss as a company car and it; it's costs (gas, insurance, etc) will be deducted.

or if you can afford to never have to deal with an out of warrenty issue. it's nice to know that if anything goes wrong on my camaro; it's covered for the length of the time the car is mine.

not to mention, leasing the camaro about to be produced in feb will allow me to pick up the camaro that will be made in 2 years leaving me with hud, more options, a better build and who knows... maybe a z28 badge.

it's all about circumstances, for most; leasing doesn't make sense cause they can't make the best of it... but that hardly means that its senseless.

[bolteon593]

Originally Posted by joes3rdcamaro82/91/2010

How many cars have you leased? And I am not to fimilar with how leasing works, could you explain? Please know one else answer these questions I want to here it from him, thanks.

and to just add a bit more.


financing is purchasing the value of a car at a certain point, agreeing to a number and how much your willing to pay on top of it for the loan of the physical item till you pay off the number agreed upon.

leasing is purchasing the loss of value of a car over a certain time frame. you agree on an initial value (msrp in most cases), and then agree to an amount that the car will be worth at the end of our lease.

the difference of those two values is what you pay for. ie your basically renting the car for 2-5 years. at the end of the lease, it goes back to your dealer. there's also a leasing rate that gets added just like in financing to charge you interest.

like i said it has its ups and downs... each to their own situation.


---


and one more thing, you can mod a leased vehicle. you just can't return it mod'ed.

ie, you add a pair of turbos, when the car goes back you need to have them off or youll be a, loosing your turbos... and b, getting charged for going outside the terms of your lease.

again, it's all about means and reasons... i'll be swapping out my front facia and hood for the stock v6 facia and then painting on vinyl stripes that reach past the hood.

for the length of the lease, i'm gonna have to keep a hold of the original front facia and hood so that when the car goes back to my dealer one day... it's exactly the way they gave it to me.

hope that helps.

[DeathChill]

I was under the impression that leasing was all but done (unless it's for ridiculous amounts)? Does GM still lease?

[camaro5]

Originally Posted by DeathChill

I was under the impression that leasing was all but done (unless it's for ridiculous amounts)? Does GM still lease?

Not really, like you said, they artificially inflated them so no one will lease.

[NUCAR]

Originally Posted by camaro5

Not really, like you said, they artificially inflated them so no one will lease.

Actually, GMAC...and the others are out of leasing. The leases that can be done are financed through outside banks who are using more realistic residual values which result in more realistic payments. Every leased vehicle turned in for, at least, the last 6 months and going forward for the next several years represents a substantial loss for the leasing company, be it GMAC, Chrysler Financial, Ford Motor Credit or the Bank of Japan.

[joes3rdcamaro82/91/2010]

Originally Posted by bolteon593

and to just add a bit more.


financing is purchasing the value of a car at a certain point, agreeing to a number and how much your willing to pay on top of it for the loan of the physical item till you pay off the number agreed upon.

leasing is purchasing the loss of value of a car over a certain time frame. you agree on an initial value (msrp in most cases), and then agree to an amount that the car will be worth at the end of our lease.

the difference of those two values is what you pay for. ie your basically renting the car for 2-5 years. at the end of the lease, it goes back to your dealer. there's also a leasing rate that gets added just like in financing to charge you interest.

like i said it has its ups and downs... each to their own situation.


---


and one more thing, you can mod a leased vehicle. you just can't return it mod'ed.

ie, you add a pair of turbos, when the car goes back you need to have them off or youll be a, loosing your turbos... and b, getting charged for going outside the terms of your lease.

again, it's all about means and reasons... i'll be swapping out my front facia and hood for the stock v6 facia and then painting on vinyl stripes that reach past the hood.

for the length of the lease, i'm gonna have to keep a hold of the original front facia and hood so that when the car goes back to my dealer one day... it's exactly the way they gave it to me.

hope that helps.

Thanks, I sale cars I know how leasing works, I just wanted animal to answer with his extensive knwoledge. People are scared to lease becuase of the past horror stories. So they usualy sound off without knowing how it works now and days.

[Vash]

What happens is the age of the internet people wise up to "Smart (cough) Lease" and variable APR w/ballons etc.

I.E. it's best to just pay your bills, live frugal and then your FICO goes way up then you get the best rate. And also maintain corrosion on your vehicle and it can last a looong time. Notice all of a sudden Stabilitrak becomes standard RIGHT when the market starts collapsing? (they could of given it a long time ago but to cut costs.......).

Leasing can make a comeback but it needs to be cheaper and more practical. The problem with that is the resale value later.

[camaro5]

NEW YORK (Reuters) – GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks.

According to a U.S. Securities and Exchange Commission filing, GM may now offer incentives such as low-interest loans through other lenders, subject to restrictions. Some of these restrictions will be lifted in December 2010, and the rest in December 2013, the filing said.

The change may help GM sell more vehicles, and rely less on GMAC's ability to provide credit. GM sales fell 41 percent in November after GMAC had significantly tightened credit the prior month, leaving many prospective buyers unable to borrow. GMAC eased its lending requirements after getting the bailout.

Also in the filing, GMAC said it will have no obligation to finance vehicle leases. GMAC has lost money on leases because trade-in values are falling, especially on less fuel-efficient models such as large sport-utility vehicles.

http://news.yahoo.com/s/nm/20090102/bs_nm/us_gmac_4

[TaylorRyanSS]

Originally Posted by DeathChill

Just curious and slightly off-topic but why would you want to lease? You can't mod it which it appears you want to do.

Anyway, glad to hear that they're starting to loosen it up for people. This is definitely key to getting things moving for the people with secure jobs.

you can mod it... My dad is leasing an 08 Wrangler and put a Pro Comp Lift and suspension and wheels. Yeah you are kinda waisting your money but the car looks a lot cooler lol. We lease all our cars since we get new cars about every 5 years, my dad just told me sometimes we lease from a bank which I didnt know you could do. My stang is leased from the bank... so thats what I will be doing for the camaro.

[DeathChill]

Originally Posted by TaylorRyan74

you can mod it... My dad is leasing an 08 Wrangler and put a Pro Comp Lift and suspension and wheels. Yeah you are kinda waisting your money but the car looks a lot cooler lol. We lease all our cars since we get new cars about every 5 years, my dad just told me sometimes we lease from a bank which I didnt know you could do. My stang is leased from the bank... so thats what I will be doing for the camaro.

From the sounds of it leasing is becoming much more expensive, which means that a slightly higher payment could have you owning it in the same amount of time.

I guess to each their own!

[TaylorRyanSS]

Originally Posted by DeathChill

From the sounds of it leasing is becoming much more expensive, which means that a slightly higher payment could have you owning it in the same amount of time.

I guess to each their own!

I guess I will have to see... but my dad got his 08 wrangler this past june for 30K and our monthly lease payment is about $450. So I am hoping to put 2K down on the camaro and have my payment be about $550 a month - 2SS with my options is about 37K

[XAnimal]

Originally Posted by TaylorRyan74

you can mod it... My dad is leasing an 08 Wrangler and put a Pro Comp Lift and suspension and wheels. Yeah you are kinda waisting your money but the car looks a lot cooler lol. We lease all our cars since we get new cars about every 5 years, my dad just told me sometimes we lease from a bank which I didnt know you could do. My stang is leased from the bank... so thats what I will be doing for the camaro.

You could finance and still get a new car every 5 years honestly

[Speedy1975]

Originally Posted by TaylorRyan74

you can mod it... My dad is leasing an 08 Wrangler and put a Pro Comp Lift and suspension and wheels. Yeah you are kinda waisting your money but the car looks a lot cooler lol. We lease all our cars since we get new cars about every 5 years, my dad just told me sometimes we lease from a bank which I didnt know you could do. My stang is leased from the bank... so thats what I will be doing for the camaro.

Originally Posted by XAnimal

You could finance and still get a new car every 5 years honestly

And have more money in your pocket to boot. Someone tell my why anyone would lease a car?

I've never done it, so if there's some benefit I'd like to hear it.

Here are the cons:

1. You're renting the car and never own it meaning you get zero return on the investment.

2. Go over your alloted mileage and you're charged extra.

3. At the end of the lease you have to refinance the car (buy it) or turn it back in and loose all that you've paid in.

So, you pay I'm guessing $300 a month for 5 years ($18,000) plus any upfront down payment ($2000?). That's $20K over five years. Then you just give the car back???? If you'd bought it at least you could sell the car and have something.

From my perspective leases were a way for people to drive more car than they could afford otherwise since the monthly payment was less and they were easier to get financed.

[bolteon593]

exactly... for 300 a month you could finance a 20k car or lease a 35k car...


means and expectations are different for everyone.


now switch that 5 year lease (few people lease over 3 years) to a 2 year lease and renting the car gains alot more financial feasibility, esp if you can deduct the cost of the car (leasing, gas, insurance, etc) for a business.

not to mention its a nice perk having a fresh new car every 2 years.