GMAC Leasing Rigidity

[Ken06H3]

Doesn't GMAC (as well as other companies doing this type of business) have an insurance policy that covers their loss? If so, they are gonna get the amount determined in the contract.

I have a Smartbuy on my H3 and have thought about changing, but looking at the prices H3 are bringing now planning to just return it.

[Hummer Guy]

Originally Posted by Ken06H3

Doesn't GMAC (as well as other companies doing this type of business) have an insurance policy that covers their loss? If so, they are gonna get the amount determined in the contract.

I have a Smartbuy on my H3 and have thought about changing, but looking at the prices H3 are bringing now planning to just return it.

They ARE the 'insurance' in that the gamble is on them, instead of you, the consumer. This is the reason they posted a $2.5 Billion loss last quarter -- which can partly be attributed to lease/smart-buy returns that the residual value was miscalculated.

This is why you're seeing folks like Chrysler completely eliminate leasing, and GMAC greatly reducing lease programs.

[wannabeH3]

i wonder what i should do. i bought it and owe 25k on it still :P its worth like 20... for trade in. should i trade in now or just keep it