End of Lease Agreement

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End of Lease Agreement

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Chevrolet Forum >> Chevy Trucks, Vans & SUV's >> Tahoe >> End of Lease Agreement

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End of Lease Agreement - 7/6/2008 7:49:56 PM

07summitwhite

Posts: 342
Joined: 3/4/2007
Status: offline

I''m leasing my suburban and want to know if the truck is not worth what it is due to the poor suv sales because of the gas prices, what will happen at the end of the contract? My trucks sticker was $58600 and my buy out at the end of the contract is $37000. Let''s just say that the truck is only worth $28000 when the contract is up, what if anything would I owe?

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2007 Suburban LTZ, Summit White, Light Cashmere Leather, Chrome Appearance Package, Assist Steps-Power Articulating, Entertainment Package, Power Moon Roof, Luggage Rack Rails, Rear Fascia Closeout, GM Hood protector, WeatherTech Floorliner

Post #: 1

RE: End of Lease Agreement - 7/6/2008 8:21:02 PM

titan5

Posts: 26
Joined: 4/14/2008
Status: offline

You should owe nothing, your obligation is a "choice" of giving it back to the dealer "or" buying it out. If you simply return the vehicle to the dealer at the end of the lease you have fulfilled your obligation.

(in reply to 07summitwhite)

Post #: 2

RE: End of Lease Agreement - 7/7/2008 12:54:35 PM

07summitwhite

Posts: 342
Joined: 3/4/2007
Status: offline

Thanks, and that''s what I hope is true...

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2007 Suburban LTZ, Summit White, Light Cashmere Leather, Chrome Appearance Package, Assist Steps-Power Articulating, Entertainment Package, Power Moon Roof, Luggage Rack Rails, Rear Fascia Closeout, GM Hood protector, WeatherTech Floorliner

(in reply to titan5)

Post #: 3

RE: End of Lease Agreement - 7/7/2008 1:44:44 PM

mary900

Posts: 173
Joined: 12/4/2007
Status: offline

...agree with Titan5. Once you fulfilled your lease obligations and the vehicle has been maintained at an acceptable level, all you have to do is return it to the dealer.

(in reply to 07summitwhite)

Post #: 4

RE: End of Lease Agreement - 7/7/2008 8:17:26 PM

07summitwhite

Posts: 342
Joined: 3/4/2007
Status: offline

OK, I''M now told from someone that knows a little more about cars that when the lease is up to see what my truck is going for in my area and offer GM that number as a buy-out. he said 9 times out of 10 that GM will bite.

So when the lease is up and the buy-out is $37,000 but the truck is only selling for say $25,000 in my area that 9 times out of 10 GM will take the $25,000 because they will have to pay a transportation company a fee to transport the truck to an auction, then pay the auction a fee to run the truck in there sale and accept even less for the truck from a buyer because they can only sell the truck for wholesale. Wholesale on a $25,000 truck would be around $19,000.

_____________________________

2007 Suburban LTZ, Summit White, Light Cashmere Leather, Chrome Appearance Package, Assist Steps-Power Articulating, Entertainment Package, Power Moon Roof, Luggage Rack Rails, Rear Fascia Closeout, GM Hood protector, WeatherTech Floorliner

(in reply to mary900)

Post #: 5

RE: End of Lease Agreement - 7/8/2008 9:34:31 AM

AZSCTACO

Posts: 98
Joined: 10/11/2007
Status: offline

My business partner just dealt with this about a week ago except it was a Mercedes R350. The sticker was about $65K...he leased it for 39 months with a residual value of $39K. Since this vehicle is selling horribly and the dealer did not want to be stuck with it or auctioned off....they sold it back to him for $24.5K with a 100K warranty OTD.

If you want to keep the Burb since you have had it since day 1.....this would be a good time to do the above.

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RE: End of Lease Agreement - 7/8/2008 10:36:12 AM

07summitwhite

Posts: 342
Joined: 3/4/2007
Status: offline

quote:

ORIGINAL: AZSCTACO

My business partner just dealt with this about a week ago except it was a Mercedes R350. The sticker was about $65K...he leased it for 39 months with a residual value of $39K. Since this vehicle is selling horribly and the dealer did not want to be stuck with it or auctioned off....they sold it back to him for $24.5K with a 100K warranty OTD.

If you want to keep the Burb since you have had it since day 1.....this would be a good time to do the above.

That''s music to my ears... Thanks

_____________________________

2007 Suburban LTZ, Summit White, Light Cashmere Leather, Chrome Appearance Package, Assist Steps-Power Articulating, Entertainment Package, Power Moon Roof, Luggage Rack Rails, Rear Fascia Closeout, GM Hood protector, WeatherTech Floorliner

(in reply to AZSCTACO)

Post #: 7

RE: End of Lease Agreement - 7/8/2008 11:19:31 AM

titan5

Posts: 26
Joined: 4/14/2008
Status: offline

This is a great idea and certainly worth the try if you want to keep the vehicle. Once you give it back, GM simply has to try and resell it and they are not going to get more than market value for it. Plus they have additional admin cost to take the vehicle back.

2007 Suburbs LTZ''s are selling at at the auctions here in Canada for an average price of $31,500 and $27,000 in the States with a low of $23,000 in Phoenix.

(in reply to 07summitwhite)

Post #: 8