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Old 07-05-2008, 02:42 PM
rck0025 rck0025 is offline
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Default Re: Hummer H3 finance/lease question

Quote:
Originally Posted by rondocap
Hi, I have a 2006 Hummer H3 that the lease ends in October of 2009. Does anyone know if I can change it to finance, and how much more that will probably cost me? I think that is a better idea, or else at the end of the lease I don''t keep the car - Finance may be better now that H3 prices are lower due to gas - maybe it will be a bit easier.


Normally, you have the option to buy the vehicle for the residual value that was determined at the time you leased. If you did a smart buy, there is no doubt you have the option to finance the truck (actually, with a smart buy you have financed the car - but GMAC has agreed to buy back the car for the residual value assuming that you have stayed within your miles and there is no excess wear and tear).

However, depending on who you leased the truck from, your residual value may be much higher than market value. GMAC inflates the residual value of their automobiles to keep the monthly payment as low as possible. Also, as far as I know, the residual cannot be renegotiated after your lease has expired - so your probably better off just buying a similar H3 on the used market and taking advantage of low interest rates and people running away from vehicles with relatively poor gas/milage (or just buy a new one - 0% financing for 5 years!). Financing the one you currently drive is likely the most expensive route to take. I would read my contract to be sure though.

Hope this helps!
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