Ken Elias' Plea to GMAC: Sell Me My Car
Memo to senior executives at GMAC reading TTAC. Perhaps you can answer a few simple questions. Why do you require all lease returns to be taken back to the auction? Why not let your dealers buy inventory at wholesale prices if they want when the car grounds at their stores? Don’t you realize that this policy only forces more supply into the sale and depresses prices? Better yet, why don’t you negotiate with me a more realistic buy-out price of my 2007 Saab 9-3 lease return? Instead, your firm insists that I pay the stated residual price which is currently approximately $9,000 more than the wholesale value. (I’d be a moron to do that. Maybe some people are. But I think most aren’t.) So you’ll take back another unit to the sale—and there won’t be any miracle on pricing there. So here’s an idea . . .
Sell me my car coming off lease at a price more in line with the market. You won’t incur fees for the dealer, the cost of transport of the car to the sale, auction house fees, and the continuing depreciation loss for the weeks while the vehicle moves/sits in transit/storage. Better yet, you can even finance me. Everyone wins. As it stands now, I’m turning a perfectly good car in to the local dealer in a few weeks. Your policy is forcing me to find a new car, and it’s likely not going to be a GM product given the turmoil ahead for your former parent. In fact, I’m looking at either a German or Japanese luxury car. But I’d prefer to keep my Saab.
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After I slept last night I came to what seems actual logical reasoning why lease return buy outs are non negotiable. I bet the lessors do not want their lessees bargaining at the time of the buyout (do not open the flood gates to this option b/c everyone will then do it). They may get enough people to pay the buy out price and fees and finance the portion that they make more money (somehow). Does anyone know any numbers or percentages of how many end of term lessees actually buy the unit in question?
I am lurker as well and just went through this request with GMAC for an 06 Saab 9-3. Answer of course was "no dice". Unfortunately, GMAC is now a bailout poster child as a bank. So, they could care less as we are all footing these "upside down" leases just like the housing market. I'm finally done with Saab after 4 of them and have no regrets.
Why does it have to be that exact car, Ken? This seems easily solved by a) giving your car back to GMAC, and b) buying the same make, model, year, color of car for $9K less in the open market. What do you care whether GMAC takes the loss on your car from you or from the auction wholesaler? Is it just so you don't have to empty out all your papers and CDs and such? :-)
I hate to say it you are all wrong I just purchased a 2007 9 - 3 31K on it that the buy was 21,000 in sept of this year for less then 13000. You just need to press the right buttons . GMAC even has a web site now to buy out the leases early and at a great price . They are going through the auction under 12,900 so GM is changing and doing business the right way . Best of luck thanks