why are GMAC's interest rates so high?

[psywzrd]

I know this isn't H3 specific but I'm an H3 owner so that's why I'm putting this here (mods: please feel free to move). Anyway, I'm trying to figure out why GMAC's lease rates are always so high. I'm thinking about getting another GM vehicle (possibly a Denali or an Escalade) and I'd like to get a better deal than GMAC offers. Their interest rates always seem to be somewhere around 7 and a fraction on a 36 month lease while other automakers routinely offer much lower rates (I know for a fact that Audi is offering 1.2% on a 36-month lease for a Q7 right now). I paid 4.2% on an Infiniti FX35 a couple years ago which I thought was a bit high, but it's nowhere near as high as what I'm paying for my H3 (7.75% I believe). Anyone have an explanation here or a recommendation?

[RubHer Yellow Ducky]

Originally Posted by psywzrd

I know this isn't H3 specific but I'm an H3 owner so that's why I'm putting this here (mods: please feel free to move). Anyway, I'm trying to figure out why GMAC's lease rates are always so high. I'm thinking about getting another GM vehicle (possibly a Denali or an Escalade) and I'd like to get a better deal than GMAC offers. Their interest rates always seem to be somewhere around 7 and a fraction on a 36 month lease while other automakers routinely offer much lower rates (I know for a fact that Audi is offering 1.2% on a 36-month lease for a Q7 right now). I paid 4.2% on an Infiniti FX35 couple years ago which I thought was a bit high, but it's nowhere near as high as what I'm paying for my H3 (7.75% I believe). Anyone have an explanation here or a recommendation?

Check with your bank

RYD

[Hummer Guy]

Right now Hummer vehicles are lower than almost ALL other GM vehicles for smart buy/lease rates...for what its worth...

[psywzrd]

Originally Posted by Hummer Guy

Right now Hummer vehicles are lower than almost ALL other GM vehicles for smart buy/lease rates...for what its worth...

I'll take your word for it, but GMAC's rates are generally significantly higher than anyone elses. I don't have the exact figures in front of me but I know that when I was shopping for a Denali recently, the interest rate on a 36-month lease was at least 7%. Why does it seem like GM is unable to offer its customers competitive lease rates? Is it because of their financial situation? I'd love to be able to stick with a GM vehicle but when so many other car makers are offering amazing lease rates, it gets increasingly difficult to justify paying those rates.

[usetosellhummer]

Becasue Gm has never put together a good lease return program. Lexus, LR and Jag have great programs because of the way they sell em after the lease and they want them back to make more money on them. GM does not have good residual value so they wont' take the hit. I had a customer actually had Ford Motor Credit/LR do the lease on a new H2 becasue this guy was a good cutomer. Ford bout the vehicle from us and leased it to him??????????? GMAC should always be your last choice unless it's o%

[psywzrd]

Originally Posted by usetosellhummer

Becasue Gm has never put together a good lease return program. Lexus, LR and Jag have great programs because of the way they sell em after the lease and they want them back to make more money on them. GM does not have good residual value so they wont' take the hit. I had a customer actually had Ford Motor Credit/LR do the lease on a new H2 becasue this guy was a good cutomer. Ford bout the vehicle from us and leased it to him??????????? GMAC should always be your last choice unless it's o%

Where do people find competitive lease rates then? I know someone here mentioned to check with my bank but do people use any of the bigger banks (Citibank, BankOne, etc.)? I've generally just done my financing through through the manufacturer's financing company because of the convenience factor but if I can save some money by going through a 3rd party, it seems to be worth the trouble.

[Smokin Joe]

I got a 0% @ 72 month loan from GMAC for a 2006 H2! Not bad?