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Negative equity... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Thu, 21 Oct 2004 12:34:38
In Reply to: I want a Saab - GMAC / Saab Dealer Question..., SS, Wed, 20 Oct 2004 09:56:09 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Can you return a SmartBuy to GMAC at the end of the term? If you can then there are two relevant amounts, instead of one. There's always the payoff and the relationship to the ACV or actual trade in value. Ususally this is negative, you owe more than the payoff. This amount, if it's negligible and not too big, can be rolled into the next lease or SmartBuy, sometimes.
The other method which would only work if like a lease, you had the option of returning the vehicle to GMAC, this other method is "the amount to terminate". This is different the the payoff. When you go the payoff route you or the folks paying it off acquire the vehicle. The amount to terminate is the total amount GMAC wants to take the vehicle back. Sometimes this is a more favorable amount then the payoff and the difference to the trade in value, but not usually until when the remaining payments get down to about half a dozen or so.
The only scenario that has you owing less than the actual cash value of your vehicle, is if you went with a massive down payment when you bought it the first time. Otherwise negative equity is the norm. If you went the more normal route of 10-20% down you likely owe "substantially" more than your vehicles trade in value.
With the massive incentives on remaining 2004 Saabs, especially 9-5's, and the super low lease rates (can you lease or is that why you went SmartBuy the first time?), whatever negative equity you can load into the next Saab transaction, might still make it attractive for you.
posted by 63.197.222...
, Thu, 21 Oct 2004 12:34:38 <-- Viewing This Message
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