SmartBuy

[jhawk]

So I'm new to this but seriously considering a H3. Just wondering if this sounds right or if there's something I'm not taking into consideration. According to the HUMMER website I can get a base H3 for $233 a month for 24 months by doing the SmartBuy. Here is the breakout:

$30,500 (estimated selling price with GMID)
$6500 net trade-in
24 month term
5.75% APR
15K annual mileage

To me sounds really good, that's why I'm wondering if I missed something.

[RubHer Yellow Ducky]

LEASING:

24 months X $233.00 = $5592.00

Trade = $6500.00
_____________
$12092.00
by 24 months = $ 503.83 per month

not figuring APR

$6000 a year for a H-3 and you don't own it.

For me if you can use it as business for tax purposes fine, if not, I personally like to own something.

RYD

[HummerNewbie]

First, isn't the price a thousand or more over base MSRP? Why is it higher than MSRP with GMID? You must be adding options to the base model. Second, what is the payoff in two years? Isn't a SmartBuy basically the same as a lease? You put so much down, you end up with a cheaper payment but you have to either pay it off after the term of the contract or walk away. Are you going to pay it off after the term? If not, go lease it and get a better monthly payment.

[nmikes]

Is the selling price before or after the trade-in... or is that the guaranteed value when the lease expires? With the information given it almost sounds like a wash, I think thats a respectable entrest rate. But there's not enough information given like with options etc. Have you done the numbers for GMID for purchase? I'd rather purchase as well... did a lease once... never again... you will more often than not lose your shorts unless you drive it like a typical geriatric. Plus Its only taken me 7 months to burned through 15K **** eating and grinning miles

[jhawk]

This was a base model with:

MONSOON STEREO SYSTEM
POWER SUNROOF
AUTOMATIC TRANS

The price was before the trade and I typically trade cars in every couple years. Just not sure I want a 4 or 5 year loan if I could walk away in 2 years and get another new HUMMER then.

[nmikes]

If you want to rent a vehicle then... power to the people. I have a tendancy to get emotionally attached to my vehicles but hey thats just me. There is plenty of helpful information regarding the pros and cons of leasing vs. purchasing on google. Balance it all out and go with what your priorities are. Trust me, unless you've done your homework well... the dealership is probably making alot more money than you think they are.

[RubHer Yellow Ducky]

You didn't state where you are located but if you have a good choice of dealers the price you pay if purchased shouldn't be over DEALER INVOICE + transportation charges + ad fees if on the FACTORY INVOICE that of course YOU WANT to see. Remember they still are making 3% of the MSRP on you {dealer holdback}. (now remember dealer installed accessories are a different story - HIGH PROFIT for the dealer) Consider dealer addons as gravy...REMEMBER you are not concerned with LIST PRICES (they are call "once upon a time or this is no S**T") BASE ALL INQUIRES ON FACTORY INVOICE PRICING

RYD

[Dani]

Three of the Hummer dealerships I went to said that they won't use SmartBuy anymore.

[jhawk]

I'm in St. Louis, so Lynch would be the dealership. Did the other dealerships say why they weren't doing it? It's still being offered as an option on the HUMMER website. I guess I like this option because in 2 years I could walk away from it and get a 2008, another in 2010, etc rather than making higher payments the whole time to purchase it and then more than likely trade it in for a new one once the 5 years are up. Are most of you planning on keeping yours once it is paid off?

[HummerNewbie]

Calling yourself "jhawk" you should move one state west

To me it sounds like a lease would be a better option for you. Are you looking to get the lowest payment you can get? I lease mine because I usually want a new vehicle within about 3 years so unless you are putting a lot down you are not really any better off in three years when you go to trade one you purchased. I looked at all my options from lease to a flat out purchase for cash and the lease worked best for me. To me, the cash is better spent on appreciating investments than it is on a depreciating vehicle. Just my two cents and everyone's situation is different.

[Dani]

Originally posted by jhawk:
I'm in St. Louis, so Lynch would be the dealership. Did the other dealerships say why they weren't doing it? It's still being offered as an option on the HUMMER website. I guess I like this option because in 2 years I could walk away from it and get a 2008, another in 2010, etc rather than making higher payments the whole time to purchase it and then more than likely trade it in for a new one once the 5 years are up. Are most of you planning on keeping yours once it is paid off?

I was told they no longer used SmartBuy because it really wasn't any different from leasing and at the end of the SmartBuy term the final payment couldn't be refinanced (like you can with a lease). It was due in one lump sum. Now- I've heard differently from a few others however this is just what I've been told from the dealerships. They basically compared it to a land contract. I'll be the first to say that I don't know **** when it comes to stuff like this....so I really wouldn't be surprised if it's incorrect. Again- it's just what I was told.

[1COOLH3]

I leased my H3 Adventure for two years with 15k miles per year. Here is the way I figure it:

MSRP was $37k and I put $4000 down and my payment is $300 a month. That equals $11200.

Will this H3 depreciate that much in two years? Most definately- especially when the V8 comes out no one will want the 5 banger.

If I were buying I would lose at least as much as what I'm paying in "rent" and then I would still be stuck with either selling or trading in. All I have to do now is return it and jump in another brand new Hummer - hopefully a V8.

[HummerNewbie]

Originally posted by 1COOLH3:
Will this H3 depreciate that much in two years? Most definately- especially when the V8 comes out no one will want the 5 banger.

If I were buying I would lose at least as much as what I'm paying in "rent" and then I would still be stuck with either selling or trading in. All I have to do now is return it and jump in another brand new Hummer - hopefully a V8.

Exactly my thinking on it.

[BuzzH3]

My understanding of the SmartBuy is that it is just a balloon loan. You make payments for a certain time period then you have a balloon payment due at the end. Not sure how it really differs from the lease, but I thought that there was no mileage limitations on the SmartBuy.

Have you talked to anyone at Lynch yet? If not, talk to Tom Klosle. He was very helpful to me. Also, not sure if you know, but they are having an Off-Road event on April 29th on their track behind the dealership. Hope you can get yours by then. I'll be there. It should be fun.

[HummerNewbie]

Originally posted by BuzzH3:
My understanding of the SmartBuy is that it is just a balloon loan. You make payments for a certain time period then you have a balloon payment due at the end. Not sure how it really differs from the lease, but I thought that there was no mileage limitations on the SmartBuy.

I never really understood the difference from a lease either. I also think you end up with higher payments with a SmartBuy versus a lease but could be wrong about that.

[Dani]

Originally posted by 1COOLH3:
I leased my H3 Adventure for two years with 15k miles per year. Here is the way I figure it:

MSRP was $37k and I put $4000 down and my payment is $300 a month. That equals $11200.

Will this H3 depreciate that much in two years? Most definately- especially when the V8 comes out no one will want the 5 banger.

WOW! The H3 I'm looking to buy has a GMS price of roughly $33k (it's just shy of $33k but close enough) and I'm putting $4k down and my payment is still well over $550 a month. And that's to lease it with 10k miles for 39 mos.

[HummerNewbie]

Originally posted by Dani:
WOW! The H3 I'm looking to buy has a GMS price of roughly $33k (it's just shy of $33k but close enough) and I'm putting $4k down and my payment is still well over $550 a month. And that's to lease it with 10k miles for 39 mos.

Something doesn't sound right there. I have a 39 month lease with 15K per year, put down less, don't recall GMS but it was more than $33K and my payment is right at $400.

[usetosellhummer]

smart buy is like a lease with the benifits of buying. GM will take the car back as long as it is within in milage limit and condition and you walk away after 24 months. If you decide you wan tto keep the vehicle you can finance the amount remaining. GM was burned bad by them on low dough pontiacs a few years back and some dealers or states don't like them. It is an incentive purchase. God forbit you off-road it on a smart buy and try to turn it in and walk away. Smart buys are for stupid people.

[HummerNewbie]

Originally posted by usetosellhummer:
God forbit you off-road it on a smart buy and try to turn it in and walk away. Smart buys are for stupid people.

Just curious, since a smart buy sounds identical to a lease, is it worse than a lease?

[1COOLH3]

OOPS- I goofed up! MSRP was $37 but I paid GM Employee price and right now I dont know exactly what that was- I have to find my paperwork.

This might really screw up my reasoning for my lease.