H3 smart buy option or lease

[oneworld]

Was at the dealer today and got some new info. Hummer will offer a smart buy from GMAC (I believe GMAC) $4995.00 down, $399.00 per month I believe that this will be offered as a two year plan, the millage is to be determined acording to the memo. you can buy the vehicle out in two years. My dealer called it the two year test drive and showed me the memo. This should start to be advertised with in this month as the H3s hit the floors.

[oneworld]

Was at the dealer today and got some new info. Hummer will offer a smart buy from GMAC (I believe GMAC) $4995.00 down, $399.00 per month I believe that this will be offered as a two year plan, the millage is to be determined acording to the memo. you can buy the vehicle out in two years. My dealer called it the two year test drive and showed me the memo. This should start to be advertised with in this month as the H3s hit the floors.

[H3 Buyer to be?]

5K down? EEEEEEEEEEK. If I can borrow at 5% through my credit union I am DEFINITELY not giving GM my $5K.

Anyone else agree?

[Ely]

That comes out to 15 thousand dollars

why would anyone pay half the cost of the car, just to drive it for 2 years?

Does anyone have any prices that dealers gave them about leases.. Im interested in a two or three year lease... 10 or 12 thousand miles

Thanks

[HummerNewbie]

Avoid putting anything down on leases. From what I hear, if you put money down and anything happens to the vehicle that money is gone. Say you put down $5K and in the first week it is totaled or stolen and never recovered. You do not get your $5K back. At least that is what I have heard.

[oneworld]

Ely, a lease will be around $500.00 per month, and the smart buy is for someone who is going to buy the vehilce, but if they want out they can get out. A lease is the same amount of money and then you have to buy the car out of the lease so you will pay the sales tax twice. $500.00 per month over 3 years is 18000.00. so you do the math, the lease will not be cheaper.

[oneworld]

Thats why you have insurance, say I pay the whole amount in cash 35000.00 then what will happen to that money if the same thing happens, INSURANCE. if the car gets stolen where is my money, or totaled > insurance

[HummerNewbie]

Yes, that is what insurance is for. But with your scenario, I bet you wouldn't get the full 35K from the insurance company. You are also talking about buying, not leasing. Just going on what I have heard from a few people who always lease their vehicles and never put anything down. I also have a problem with these lease rates that I have heard on the H3. A friend of mine has a loaded 05 H2 that he leased with zero down and it is right at $600 a month. I know there were incentives at that time but give me a break, it was twice as much as the base H3.

[peyote]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by oneworld:
$500.00 per month over 3 years is 18000.00. so you do the math, the lease will not be cheaper. </div></BLOCKQUOTE>

i hope your math is better then this when you go car shoppin' :P

[baby_hummer]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Does anyone have any prices that dealers gave them about leases.. Im interested in a two or three year lease... </div></BLOCKQUOTE>

Initial offer: $640/mo for 36 months, $610/mo for 48 months--both with a minimal down payment. I'm circling back with the finance guy tomorrow to discuss other options.

And I agree with H3 Buyer to Be--my credit union offers 4.74%. The big catch with banks/credit unions is that you may be required to put as much as 20% down.

[H2forMe]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Initial offer: $640/mo for 36 months, $610/mo for 48 months--both with a minimal down payment. I'm circling back with the finance guy tomorrow to discuss other options </div></BLOCKQUOTE>

That is just ridiculous! I lease a 2005 BMW 5 series (a 50K plus vehicle) and pay $605 a month including tax with 0 down, 0 deposit.

How can they justify asking that for a 30K vehicle?

[lexpro]

Never put any money down on a lease (or a purchase for that matter, why invest in a car)....never lease even if there is a slight chance you will refinance(buy the car at the end of the term)...You guys need to be asking what the money factor is,price of the car after taxes and fees,and the residual is on the leases to determine if you are getting a deal or the shaft.

[DRUMMER]

What I did is that I build up the H3 that I want. It came up to an MSRP of 38,345. Sine HUMMER doesn't have a payment calculator for the H3, I select an H2 and modified the price. Since I'm planning to put 2,000 down all monthly payments are based with a 2,000 down.

Retail Financing - 706.88
Smart Lease - 377.93
Smart Buy - 558.68.

At lest I can have an idea of houw much my payments are going to be. Hope that this help.

[baby_hummer]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">You guys need to be asking what the money factor is,price of the car after taxes and fees,and the residual is on the leases to determine if you are getting a deal or the shaft. </div></BLOCKQUOTE>

Dan: Can you explain the money factor in layman's terms?

[edited]
I just saw your other post explaining your personal financing. I then went to the GMAC website and worked through the SmartBuy example.

NOW, I get it.

Depending on the deal, you pay less up front. You may pay more on the back end if you decide to refinance the remaining amount. However, because the present value of money > future value of money, you're better off with that money now rather than later.

Question: are you accumulating equity with SmartBuy?

[Ely]

You guys... I cant believe some of the things that have been posted today

Are peopel really paying 500 and up on H3s? Thats absolutely ridiculous. My uncle has an 05, H2 that hes paying 540 a month for only two years... his downpayment was 600, and the 540 includes tax and all fees.

I understand that he got a very good deal... but come on, THAT much for an H3? Come on.

I was hoping to pay less than that for my H3 LUX (which by the way is SUPPOSED to arrive tomarrow)... but if leasing is so high, i guess il be buying.

[HummerNewbie]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by DRUMMER:
Smart Lease - 377.93
</div></BLOCKQUOTE>

I am all over that http://www.elcova.com/infopop/emoticons/icon_smile.gif

[oneworld]

for all of you comparing prices on H2s, they are not selling well, with gas prices, and they are not a new vehilce model, in Dec 04 they were advertising H2s at 409.00 per month, so what ever it is > it is not relavent now > if you want a deal on the H3 > wait a year or 6 months and see what happens but for now it is hot new and they will get your money. Also understand that other cars like BMW have a great resale value so leases are good. And by the way sorry about the extra 0

[HummerNewbie]

You definitely have point about it being a hot new vehicle. I certainly have a hard time excepting a lease payment nearing $600 for a $35K vehicle though. We will just have to wait and see. I sure will hate to, but will wait a while if pricing is out of line.

[DeLeon]

Always have to pay the price for the latest and greatest... however, I would never pay over MSRP!

[H2forMe]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by DeLeon:
Always have to pay the price for the latest and greatest... however, I would never pay over MSRP! </div></BLOCKQUOTE>

second that!

[oneworld]

This is a quick note for all, I was buying the new jeep cherokee, with the v8hemi, (till I got wind of the H3) now only 5 months after its release deals are spinning wild. My best lease quote was 550.00 per month with 1200.00 down most were pushing 600.00. Now you can get in one loaded for 470.00 per month with less down. and maybe less as time winds down, the hype is over and the roads are full of the body style and the dealers are looking to unload. for memorial day the sales, had deals like crazy > ulmost made me rethink But its the H3 for me.

[H2forMe]

since the sales on the H2 are not doing so well and based on what I read from other users, there are deals on them, would anyone consider an H2 over the H3? I mean if what they are posting is correct, and the H2 payments seem to be same or lower than what they are asking for the H3, then why not get an H2?

[DeLeon]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by MaybeH3:
since the sales on the H2 are not doing so well and based on what I read from other users, there are deals on them, would anyone consider an H2 over the H3? I mean if what they are posting is correct, and the H2 payments seem to be same or lower than what they are asking for the H3, then why not get an H2? </div></BLOCKQUOTE>

Two words: GAS PRICES!

[HummerNewbie]

If I could get an H2 for what I am willing to pay on an H3, then I would more than likely do it. Gas prices would be the bigest factor other than the monthly price. The H2 would have to be close to $400/month which I have not seen.

[lexpro]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by baby_hummer:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">You guys need to be asking what the money factor is,price of the car after taxes and fees,and the residual is on the leases to determine if you are getting a deal or the shaft. </div></BLOCKQUOTE>

Dan: Can you explain the money factor in layman's terms?

[edited]
I just saw your other post explaining your personal financing. I then went to the GMAC website and worked through the SmartBuy example.

NOW, I get it.

Depending on the deal, you pay less up front. You may pay more on the back end if you decide to refinance the remaining amount. However, because the present value of money > future value of money, you're better off with that money now rather than later.

Question: are you accumulating equity with SmartBuy? </div></BLOCKQUOTE>
Sorry for the late response...money factor is amount you are paying the lease company for use of the car every month(profit)it can equate to it to an interest rate by multiplying it by 2.3,

My last lease i had a 48 month lease on a lexus sc430 and i traded with no negative equity on the 31st month...IMHO you can trade out usually your last year with no negative equity as long as the miles are avg and car has no paintwork or previous body damage(I traded my 05 SUT with 5k earlier this year and got 49k for it and bought another same equipment for 49k with zero miles so i zero'd out my miles and kept my payoff the same)Overall i dont care to accumulate equity in a depriciating asset...i would rather pay a fixed amount per month to drive what i want and not put my money in a car.

[H2forMe]

This what they told me today...

H3

"If you lease for 36 months/12k miles per yr, your payments will be 639 + tax with 1319 total due @ signing."

NOT...

[HummerNewbie]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by MaybeH3:
This what they told me today...

H3

"If you lease for 36 months/12k miles per yr, your payments will be 639 + tax with 1319 total due @ signing."

NOT... </div></BLOCKQUOTE>

No F***ING WAY I am doing that. I will get an H2 for less before I pay anywhere near that to lease an H3.

[MUH_HUM]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by MaybeH3

How can they justify asking that for a 30K vehicle? </div></BLOCKQUOTE>

Hot new vehicle. Leases are high, just like no negotiation off sticker price. If you can hang for 6 months, you can get yourself a better deal. Question is, can you wait, or are you a gotta have it now kinda person?

[HummerNewbie]

I personally am a gotta have it now kind of guy but not at those prices http://www.elcova.com/infopop/emoticons/icon_frown.gif

[RT0870]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by MUH_HUM:[QUOTE]

[QUOTE]Question is, can you wait, or are you a gotta have it now kinda person? </div></BLOCKQUOTE>

I am a "gotta have it now" kind of person....provided I don't have to bend over, and K-Y is not involved http://www.elcova.com/infopop/emoticons/icon_eek.gif

[HummerNewbie]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by RT0870:
....provided I don't have to bend over, and K-Y is not involved http://www.elcova.com/infopop/emoticons/icon_eek.gif </div></BLOCKQUOTE>

Doesn't matter if the K-Y is involved or not, I am not bending over for it http://www.elcova.com/infopop/emoticons/icon_biggrin.gif

[funpilot]

My dealer quoted me 699 for a 205 SUT loaded for a 36 month lease and 12K per year....only closing costs to be paid

[HummerNewbie]

That doesn't seem very good with the employee pricing program going on. I know someone got his 05 SUV earlier this year with nothing down, 36 months and is only paying about $600/month.

[H2forMe]

they told me this for the H2...

Because of the current promotions on the H2, the leases are a better value: The base model that we discussed will only cost 675 + tax on the 36 mo lease with 1018 total @ delivery.

[HummerNewbie]

Not very good. The above post was about an H2. $600 a month before this latest promo came out.

[oneworld]

Has anyone gotten a lease yet please post your payment info, is everybody buying this thig out right leasing just seems smarter, new car every 3 years and a new payment, vehicles are not investments so why buy it. Say you buy at 35000.00 own for two years and sell it for maybe 25000.00 the 10,000.. you lost is about $416.00 per month so whats the differnce, you put up your cash first and still end up lossing the 10K lease or purchase. Thats just the cost of using the vehicle, you will always have that unless you keep it for more then 5 years. after 5 years you will be looking at new again, why give them your money up front invest the 25K and just make the car payments.

[Holliday]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by oneworld:
Has anyone gotten a lease yet please post your payment info, is everybody buying this thig out right leasing just seems smarter, new car every 3 years and a new payment, vehicles are not investments so why buy it. Say you buy at 35000.00 own for two years and sell it for maybe 25000.00 the 10,000.. you lost is about $416.00 per month so whats the differnce, you put up your cash first and still end up lossing the 10K lease or purchase. Thats just the cost of using the vehicle, you will always have that unless you keep it for more then 5 years. after 5 years you will be looking at new again, why give them your money up front invest the 25K and just make the car payments. </div></BLOCKQUOTE>

Only reason I purchase vs lease (SmartBuy in NY)is that I hate writing another check every month (lazy) and I won't give GMAC direct access to my bank account. If GMAC would charge my GM Card monthly for the payment, I'd consider the SmartBuy program, but they won't do it. Other than that, I agree with you completely if you can live with the mileage restrictions.