GMs Smartbuy Lease Benefit For Financing With GMAC

A smartbuy with GMAC is similar to a lease, but at the end of a smartbuy, you have options. You have the option to drop the car off and walk away, sell the car, keep the car and finance the balance.

The benefit of a Smartbuy compared to a standard lease program is that you are guaranteed financing by GMAC if you decide to keep the vehicle. When considering a lease, if you are late on a few payments, you may have difficulty financing the car for the remainder of the term.

A Smartbuy will allow the purchaser to obtain a lower payment while still having their name on the title. Whereas, in a standard lease, the finance companys name would be on the title; in this instance, GMAC. You will also have to carry lower deductibles with a standard lease, where the smartbuy you can carry standard Insurance deductibles.

I tell customers that if they drive low mileage, like 12000-15000 miles per year, the smartbuy is the ticket. Many say they want to buy the vehicle because they hate to pay for a car they never own. But, consider what amount you received for trade-in on the last 4 year old car you thought you owned. When in reality, money was still owed on the vehicle and you was several thousand dollars upside down. If you were in a smartbuy, you start new again. If you buy, you pay more per month and carry money over on the next vehicle.

Some terms you need to know in a lease or smart-buy. The first is Cap Cost or Capitalized Cost. Cap Cost is the amount that you pay for the vehicle. Therefor, Cap Cost Reduction would be anything that decreases this figure, Down payment, trade in, rebates, etc. The last scary term to know is Residual Value. This is a figure determined by manufacturers of what your car will be worth in 2, 3, or 4 years. Cars depreciate and are given a percentage of what they will be worth at lease signing. This is actually a great thing because when you purchase, you do not know what your vehicle will be worth in 4 years. If your car is given a residual value of 50%. This means you will pay 50% of the vehicle minus any cap cost reductions. This in a nutshell is leasing. It is not scary, just scary terms!

Remember, price is still negotiable in a lease. For a lower lease payment, a lower price always works! Get Your FREE Quoteon the vehicle you are considering to lease. This will give you a free price quote and save you thousands.

Check out New Bonus Cash on all Leased Vehicles. Big Bonus Cash Money can be used for anyone leasing a vehicle even if it is not GM!!!

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