Buy a truck, get a FREE car on some lots

Reply Subscribe

Thread Tools

Search this Thread

Oct 28, 2004 | 08:47 AM

#31

redzed

Banned

Joined: Mar 2002

Posts: 1,954

Re: Buy a truck, get a FREE car on some lots

Quote:

Originally Posted by Darth Xed

I pay $229.83 per month on a 2 year / 24k mile lease on the GTO with a residual value of $21k or so at the end of the lease. I traded in the Monte, used $1183 of the equity in it to go toward the downpayment, first months payment, title, tags, and my GM Card rebate of $817 to make a round $2000 down. The GM CArd was also offering some bonus rebate at the time, so I got an additional $500 toward the GTO for a total of $2500 down. I also got a check back from the dealership in the amount of $2400 cash back that I put in the bank from extra equity left on the Monte after the remainder of the 5 year loan was paid off and the $817 was put toward the down payment as mentioned above..... (and before you blast me for having a 5 year loan on a car, I normally don't do that, but I had reasons for it at the time, including saving for a downpayment on our house we just built... )

1. That's a pretty high residual, so you really lucked out. I wonder if the residual was set before the 2004 GTO flopped? In any case, GMAC or whoever is taking all the investment risk. If the car's worth way less than the residual in two years, you're in the clear. If it's worth way more, you can make a few bucks. Don't count on it, though. Really good leases often make poor buys.

2. I wouldn't blast anyone for taking 5 year paper these days, especially if you managed to get out of it so nicely. With the rates low and credit being so easy, nows the time to borrow all the money you can. I do have to wonder about the folks that are taking out 6 and 7 year paper.

3. With the bad luck/damage on your previous car, I'm surprised that someone at the dealership offer you "lease insurance." For a few hundred bucks, I would prefer to way away at the end of the lease and not worry about how hard they're going to hit me for little things like door dings. Some lease companies even look for bogus "invisible" stress cracks in the windshield with a UV light. If the finanace manager didn't offer lease insurance, it was probably because it's a low profit item.

Oct 28, 2004 | 08:59 AM

#32

Darth Xed

Registered User

Joined: Dec 2000

Posts: 8,504

From: Ohio

Re: Buy a truck, get a FREE car on some lots

Quote:

Originally Posted by redzed

Well, I can't say when the residuals were "set", but I'd imagine GMAC floats this to current market conditions, but I really don't know... I am assuming here. Either way, I was happy with the outcome.

Quote:

2. I wouldn't blast anyone for taking 5 year paper these days, especially if you managed to get out of it so nicely. With the rates low and credit being so easy, nows the time to borrow all the money you can. I do have to wonder about the folks that are taking out 6 and 7 year paper.

Well, yes, the good interest rates were are major reason I chose to string it out to 5 years with the Monte... plus, like I said, the lower payments, with minimal penalty for stretching it, allowed me to save up more down payment money for my construction loan on the new house...

Quote:

3. With the bad luck/damage on your previous car, I'm surprised that someone at the dealership offer you "lease insurance." For a few hundred bucks, I would prefer to way away at the end of the lease and not worry about how hard they're going to hit me for little things like door dings. Some lease companies even look for bogus "invisible" stress cracks in the windshield with a UV light. If the finanace manager didn't offer lease insurance, it was probably because it's a low profit item.

While the Monte did have the windshield chips (they were filled though), scratch on bumper, and tear in the front fascia (was on the passenger-side "ground effect" area of the front fasica...) it was in excellent working order. I have no complaints whatsoever about the Monte... in fact, my wife REALLY misses HER Monte SS (she had an 01 SS for several years, but wanted to get a 4-door car to make things easier at work for her).

We have a very good relationship with the dealership as a whole, so I am not really worried about any sort of "insurance add-ons" ... I would almost never purchase an add-on like that anyway.