No.
There are a lot of misconceptions people have about buying leases out/end of lease procedures that cause a lot of confusion.
The biggest thing to remember is: although you have been given a buy out number for the end of the lease, you have not been given a BUY OUT FINANCING GUARANTEE. That number is simply what the bank is willing to sell it to you for.
Facts:
Buying your lease out is simply a BRAND NEW USED VEHICLE FINANCING TRANSACTION!!!!!!
1- the lease buy out number is an arbitrary number generated at lease inception that is basically a guess on what the vehicle is going to be worth: If in x years you bring us a vehicle with YY thousand miles on it you can buy it from us for Z amount. That final buy out number can when the time comes around have no relation to what your vehicle is actually worth:
they may say the buy out is $15,000 when if you go on Kelly your vehicle is only worth $12,000. Or they say worth $15.000 and Kelly says 18,000. In any case where the vehicle is worth significantly less then the buy out on the financing end, no bank is going to finance a 12,000 vehicle for 16,000 after taxes and fees unless you have really good credit or a down payment. the final condition of the vehicle that you are turning in also determines what it is worth- put 65,000 miles on a 3 year old vehicle (seriously depreciating it) and see who wants to finance you.
2- Using the rule of thimb that every 1000 financed is 20 a month in payment , most leases are cheaper then the buy out. Do you, after making 3 years of lease payments want to get into 5 or 6 years of higher payments to have a 10 year old vehicle you are still making payments on?
3- what your vehicle is truly worth, in the banks eyes at the end of the lease is going to determine how they look at it for financing you.
4 Your credit at the time of the lease buy out is going to determine what rates payments and loans you get.
Is there going to be some loyalty consideration and some consideration that the bank does not want to be stuck with the vehicle--YES will it be enough to get you financed at a favorable rate not with a 550.
YOU NEED TO START SAVING MONEY NOW TO EITHER GET INTO A NEW LEASE, A NEW CAR OR A USED CAR OR TO PUT MONEY DOWN TO BUY YOUR LEASE OUT
IN ALL HONESTY YOU WILL NOT BE ABLE TO GET FINANCING TO BUY YOUR VEHICLE OUT. IF GMAC IS STILL IN LEASING THEY MAY LOYALTY RENEW YOU TO ANOTHER LEASE IF YOU PUT SIGNIFICANT MONEY DOWN.
Message Edited by usmc58555 on 02-26-2009 11:35 PM
