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.

[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

[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...

[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!

[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

[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]

<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.

[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]

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.

[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?

[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.

[HummerNewbie]

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

[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

[DeLeon]

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

[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?

[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.

[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.

[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.

[HummerNewbie]

I personally am a gotta have it now kind of guy but not at those prices

[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?