[Envious_Ivy1LE]

Just happened to come across this article on LeaseHackr... I'm not sure anyone on this forum would be affected by this.. seems crazy to me that they can even be allowed to make a change like this. Another way of trying to line their own pockets.

https://leasehackr.com/blog/2021/6/2...on-july-1-2021

[silverboost98]

Must be in the fine print of the lease for them to be able to do that. I've never leased a vehicle personally so I don't know what's in a typical lease contract.

[Envious_Ivy1LE]

the original article I keep seeing referenced is behind a paywall.. but it says that are making this change as a result of the current vehicle Market to prevent people from selling their leases to anyone but A GM Family Brand.

.. I guess I'd have to find and read my truck contract but I don't recall them having authority over who could buy the lease.. only over who could take it over..

[adamcars]

We have pretty well established on the lease Hackr forum that on their lease, GM Financial owns the vehicle and can sell it to whomever they do or do not wish.

[Envious_Ivy1LE]

Originally Posted by adamcars

We have pretty well established on the lease Hackr forum that on their lease, GM Financial owns the vehicle and can sell it to whomever they do or do not wish.

so.. does this mean they could prevent you from buying out your own lease?

for example (wild scenario) lets say someone leased a 2SS in 2018 and now residual puts the car somewhere around $34k but today's market has it closer to $37-$39k... can GM Financial refuse your buyout and take the profit themselves?

edit: also I'm not gonna lie. I infrequently browse leasehackr because Texas is a bad lease state and the forum design isn't too 'new user' friendly

[Chef-j]

Humm i didnt know they can change like that.. if thats true, its kinda sucks to who leased their GM vehicles

[sandm]

leased a few vehicles over the years. cars are usually a depreciating asset and the residual is set as such. no one saw this current market coming and sure GM is trying to ensure they have GM cars to show. I get it.

funny tho that people are bitching at what they are doing when there is an opportunity to "make money" on the lease but NO ONE said a word when the market crashed 10 years ago and everyone simply walked away from their end of lease leaving the finance arms to take the hit.
seems to me people forget that leasing doesn't afford some of the same benefits as owning and some have that "want their cake and eat it too" mentality...

[Envious_Ivy1LE]

Originally Posted by sandm

no one saw this current market coming and sure GM is trying to ensure they have GM cars to show. I get it.

it has nothing to do with GM wanting cars to show. if that were the case they'd be giving owners incentives to sell the lease to GM instead of making it difficult for them to shop elsewhere

Originally Posted by sandm

seems to me people forget that leasing doesn't afford some of the same benefits as owning and some have that "want their cake and eat it too" mentality...

the major benefit of leasing is the ability to walk away or take profit at the end. that's the whole point of the lease. Being able to test the market for a vehicle at someone else's expense. I understand a large portion of people are just looking for ridiculously cheap payments, and those people will ultimately suffer because of this decision as well.

[Chef-j]

https://youtu.be/sTokIf7yvzw

This popped on my YouTube, i didnt watch all but figured share.

[sandm]

Originally Posted by Envious_Ivy1LE

it has nothing to do with GM wanting cars to show. if that were the case they'd be giving owners incentives to sell the lease to GM instead of making it difficult for them to shop elsewhere

gm can't get cars to dealers fast enough. if you go to buy a camaro, nothing in stock BUT here's 4 used lease returns to buy(don't know if this is a real reason but makes complete sense). what does make sense is if written into the lease, there's zero reason for gm to give an incentive to return car to them if they have a legal reason to do so AND gets gm branded cars on a gm lot they can potentially sell as "certified" for a premium while avoiding the inflated auction pricing.
welcome to the new normal this year.


still funny to me that people want it both ways.

edit- interesting they call out in the vid that bmw doing the same thing. bet lawyers at ford/fca/toyota/honda are reviewing lease language for the same thing.

[Envious_Ivy1LE]

you're thinking of GM, the dealer, and GM Financial as all the same entity and they aren't.

the most likely scenario is that GM Financial wants you to feel like you have no choice but to walk away from your lease or go back and lease/finance another GM branded product (which lines their pockets since they are banking on you leasing or financing with GM Financial). Ground your lease and it has profits? This lines GM Financial's pockets because they are going to make the dealer pay inflated prices or send it to auction and get inflated bids.

They are banking on not many people being willing to finance or pay cash to get out of a lease personally just to trade it and get into yet another loan immediately.

I don't think it's funny at all for people to want to either make money or walk away from negative on a lease since that's the whole point. You are paying someone else to take the risk with the ability to net a profit (in those rare times a lease is profitable). That is exactly the premise of leasing. it's not about cheap payments, despite it being marketed that way

[Envious_Ivy1LE]

Originally Posted by Chef-j

https://youtu.be/sTokIf7yvzw

This popped on my YouTube, i didnt watch all but figured share.

interesting that was actually a good video I'll have to look through their page. the older guy said "no one was complaining when 3rd party dealers wanted to pay more than the car was worth" lol why would they? GM Financial wrote the contract on this lease. sink or swim they are going to get what they are owed.

I'd have less problem with this move if it was truly about getting cars on GM dealer lots... but it's not. It's not like GM Financial is gonna take the $34k buyout for a car worth $37k. they are going to make the dealer pay $37k. which is why, before this market, you could go to dealer holdover lots and see these nice looking used cars just sitting waiting to get picked up. because GM Financial wanted more money than the dealer was willing to pay.

[sandm]

Originally Posted by Envious_Ivy1LE

you're thinking of GM, the dealer, and GM Financial as all the same entity and they aren't.

they aren't but they are. gm financial is a wholly owned division of gm. hence owned by gm. they are all in bed with each other and are all vested in working toward a common goal. as they say, one team one vision.
I have no doubt that gm will profit a little from the cars being pushed to dealers but I would be highly surprised if they are selling for same monies auctions are getting

[jenniferdehner9]

Originally Posted by BanBlender

In fact, there is nothing surprising in the actions of GM, because the corporation has one goal - to have a constant financial income from the owners of their cars through a lease agreement and constantly sell their new products. After all, if they do not that, then over time they will lose profits and production volumes. And about the payment of most rent payments and taxes in cash, I generally consider it a strange practice. I've recently read more about the ability to make online payments through e-wallets and mobile apps. I hope that in the future car owners will be able to make most of such payments online.

It's sad to read this. I didn't even think they could do that. If that's true, it sucks for those who leased their GM cars.