GM Smart Buy
Can anyone here educate me on this and how it works ? Is it a lease ?
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I brought this topic up last year and Im going to revisit it now. I did a dumb thing awhile ago and did a smart buy on a 2005 Tahoe that was at the time a $52,000 vehicle. I now have about 16 payments left in the smart buy and after going through a divorce I dont need this thing anymore.
1) I can pay about $7000 and turn it in now and start over again on something else or I have a balloon balance of $31250 at this time that would allow me to own it . My question is if I try to turn it in early can I go to any GM dealer even a GMC dealer and lets say I want to get my son a G5 for $12999 a graduation gift. Will I be financing $44249 ? Is that how it works ? I cant figure out how they will base what I owe and I dont want to go in there clueless. They will kill me .. Anyone have any ideas ? Thanks again brothers and (sisters) ..[:)]0 -
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Ok well Im in one and I have 20 payments left on a 2005 Tahoe . . Igot divorced and dont need it anymore .. IS this like a lease where IM going to get reamed to early terminate ? I know I didnt pay attention to much detail when I bought it only the negoitation of the price .. Im a dope .. 0 -
YES, or sell it for the payoff & early termination fees. 0 -
It's not a lease in the literal term although the payments are similarly structured. In a lease, the vehicle is owned by the finance company and you return it at termination. A "Smart Buy" vehicle is owned by the buyer but the payments are reduced because there is a "balloon payment" due at the end of the term. You can either turn it in, pay it off or sell or trade it and pay the balloon. 0 -
Yep, big surprise at the end of the lease for folks who are only focused on what is the payment going to be!![:D] 0 -
Last one I terminated was a 2005 LTZ Surburban, 2yr/24mo./30,000 mile limit.
Turned it in 2 months early, had 17,600 miles on it.
The selling dealership took it back in and paidoff the truck, with no termination fees.
I was not charged any fees for temination, due to the high resale value of the vehicle.
It was a GM "A" employee plan lease.0 -
So is there a early termination fee ? 0 -
Early termination fees were quoted to me as the same as the unpaid payments left over, at the time of termination.
So you would have 16 payments left out of the 36.
But, you need to call GMAC and talk to a rep.
Hopefully they will give you a break on the termination fee.
Usually I just sell mine off.
But I have terminated 2 GM Smart buys over the last 12 years early, one was 6 months early & the last at 2 months early.
And the dealer wanted the vehicle, cause I got into it really cheap, from the employee "A" plan.
Had no problem, or paid a termination fee on any of my leases, but you never know.
Call GMAC and get the info directly from them.0 -
Thanks .. 0 -
Not with a 10 foot pole. 0 -
There may be an early termination fee UNLESS you trade it in against another new GM product, in which case it may be waived. As suggested, call GMAC or your dealer if you can't find your contract. "Smart Buy" is the same as Ford's "Red Carpet" and Chrysler's "Gold Key" plans. 0
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