Sunday, September 18, 2011

Can someone please explain a Chevy Smart Buy Lease better to me?

I need some more information before making a decesion. Here are a few questions..





I need to pay around $2500 in taxes, title, etc on a smart buy lease for a 08 Silverado. Once the lease is up and I decided to smart buy lease another truck/car, would I need to pay the taxes, title again or does the dealer take the truck as a trade in?





Do you own the title? If so, Can you sell the vehicle during the lease period?





What are some pros/cons to the Smart Buy?|||Just posted this answer to the Exact same questions little while ago.....hope this helps:





Dont SMART BUY any Vehicle.....





Search "Smart Buy" on yahoo answers and you will see one horror story after another....regardless of brand.





If you want a low payment with options, try to find a Lease with a Good Residual Value and Money Factor....or even a Lease Special like what Honda is doing on many vehicles right now.





The best way to describe a Smart buy is this...





Say you have a Credit Card that has a 20k Limit on it....and you have 18k of that spent, but over the next 3-5 Years, you decide to pay 10.00 over the MINIMUM paymnet every month.





Sure, you got away with paying a little paymnet, and even put a little bit towards the principle...but after that 3 - 5 years is over, you still have the majority of your balance left.





The only problem is, the Credit Card company says you HAVE to do one of the following:


1. Pay it off in full


2. Refinance the remaining balance to pay it off in full in 3 years (on an already 3-5 year loan...for a car this is BAD)


3. Pay a REALLY high balloon payment (65% of your balance)....and give them their card back.





Now would you think any of those options are good??





Of course not...





So go for a REAL Lease, or finance a less expensive car....at least that what I try to do.





Chris





*To Princess...





I hear stories like yours EVERY DAY form customers who look at me funny when they are trying to trade out of a "smart Buy" and almost have a heart attack when I tell them what they owe vs. what the vehicle is worth!





Smart Buy = Car Buying Oxymoron of the Decade.





* To GTAMAYO....





I guess I should let you talk to the next Smart Buy trade I get in....paid off or not....and let you explain to the customer trying to trade it why its such a great idea at that point.....





You probably dont see the customers bringing them back to you like we do here, especailly once they figure out what a bad idea it really was, or how bad the dealership buried them to make 5k off of the deal.





Cant fool me man, I see it too much day in and day out.





Chris|||Unless you paid off the final balloon payment on the Smart Buy and they physically mail you the title of the car, you do not own it yet...therefore you cannot sell it. If you wanted to sell it, you would have to pay off the entire car (meaning all of the scheduled payments AND the balloon payment) before you could do that.





I believe if you finish one Smart Buy and went into another one with a new vehicle, you will have to pay tax, title, and license fees for the new car as well. It's a new car and a whole new financial arrangement altogether, so you would be responsible for all those miscellaneous fees.





In my opinion, Smart Buy is a TERRIBLE name for it, because it's probably the dumbest thing to do when buying a car. You're better off leasing a car for the same term or doing a traditional loan and buying it.|||wrong, guys come on, A smart buy is a good thing, it is almost like a lease, but the nice thing is that the car is actually titled in your name, not in the bank's name like a lease, so, you can trade the car, sell it to someone for the amount of your balance or do whatever you want with it.


About taxes, you pay the taxes on it just like when you buy anything, but you are paying only the residual value on the truck so you are only paying the depreciation on the truck, not the whole value of the truck, so you have a cheaper payment than with regular finance. So you buy more car for less money.


Now, if you think you might go over your miles you might want to go to conventional finance, other wise you might have to pay out of pocket.


Also, about the balloon payment, who cares!


How much is a 3year old truck with miles and you probably are even tired of it already, worth,


Wouldn't you like a new truck every 3 or 4 years for the same payment?


Nobody ever pays off their smartbuy, it would be stupid


Anyways silverado and impala have the best residual values of the brand


if anymore questions or you want a cheap quote


gabrielt@christensonchevrolet.com


or 219-924-3344|||A GM Smart Buy is actually a balloon loan that works something like a lease, but is NOT a lease. You get low payments but a HUGE final payment. You can repay the final payment by returning the car, like with a lease. Or you can refinance the big payment and keep the car. However, until your loan if fully paid, you don't get the title.





If you decide to return the car at the end, and get into another car, you start all over again with taxes and payments.

No comments:

Post a Comment