GMAC screws me, a GM employee on my leased car

[Mikenit3]

I leased my 2008 Corvette in Aug 2008 for employee pricing because I worked for a Chevy Dealer at the time. Recently things have changed as far as my financial situation goes and I decided to get out of this car that I now have leased 11 months out of the 36 months I was originally contracted for. Now to start off i call and get a payoff on the remaining balance or buyout amount for me... I was quoted $36,946. I would need to pay that much + tax and registration if I wanted to own this car clear and simple. That figure is based off of remaining payments less interest and the set residual value. That’s fine.

I chose to trade in the Corvette. The dealer at which I wanted to trade in the car and purchase another one from called to confirm the exact payoff or “buyout” figure that will get me out of my lease. They receive a forty-one thousand dollar plus payoff amount. That’s Over five grand more than mine?Let’s recap, my buyout amount if I want to own and keep the car is thirty six thousand and change. Perfect, fine because that makes sense. Numbers are numbers, put two and two together and it’s easy to calculate that figure. If I want to trade in the car to dealer, GMAC quotes them forty-one thousand dollars.

That gives us two pay-offs. Now in order to understand this completely I call GMAC and get the run around and poor explanations nothing to justify the difference that is until I finally get a hold of a manager that is higher up in position. Again I didn’t question my buyout figure because it makes sense. What I wanted to know is why they have to charge a dealer more. His answer “dealer buyout is based on what the car would get at an auction” – PERFECT AFTER HOURS OF TRYING TO FIGURE IT OUT I GET A CLEAR ANSWER. But something is still wrong.

I still work for a GM Dealership, and based on how the car is equipped local and or regional value says different from GMAC’s magic figure, about five to six thousand dollars different. That puts me in a huge bind because based on fair local market trade in value and my own personal buyout figure that already puts me in a negative equity situation of about $5000. Which again based off of the local market is somewhat arguably fair. With GMAC’s Dealer “buyout” that puts me at nearly $10000 upside down!?!?! Uh oh…

Now I eventually found out GMAC’s “Dealer Buyout” numbers on my car is based upon a national average the car gets at the auctions. Not taking into account the different variations of Corvettes offered and sold such as convertible, equipment packages, transmissions etc. On top of that how can GMAC justify such a dealer buyout amount which comes close if not more that what it would cost to buy a new Corvette right now from a Chevy dealer due to their GM Employee pricing for all in celebration to 100 years of GM’s existence?

Shouldn’t that in some way or form alter the value of what my car should be worth? In this case what its worth to another dealer? As a consumer anyone can quickly agree, as an employee of this business as well, YOU BET it impacts the vehicle value! It simply does not make sense that if my payoff which again includes all remaining payments less interest and set residual + any small additional processing fees is the amount that only I can pay to own this car and not a dealership that wants to buy it from me. No, GMAC wants them to buy it for what the car sells for at auctions, however using the national average amount they go and not local or regional average. Does GMAC think all markets are the same everywhere, that the demand in Florida is the same in California? Or that the price of a car that sells in New York will get the same amount in Alaska?

Understand it from even a dealerships point of view because at a customers stand point it just means a very high negative equity amount. To the dealerships eyes they are paying for a car that goes for much, much less in their own market than what GMAC is telling them its worth BASING THEY’RE numbers on a national average auction sale price, as well as not taking into consideration the difference in trim levels and configurations these cars come in which brand new can equate to $20,000 difference from base models to high-end fully loaded! I have the base model…trust me its not worth $41 grand because that’s what I paid for it last year…addition to that it has 15k miles! I know what its worth to a dealer and what its worth if you trade it in.Its poor business practice on their part, that hurts the consumer, as well as the dealership that should never have to pay more for a car than what its worth in its own local market. What difference does it make If i send the check for the payoff amount or the dealership buying from me damnit!

For them to say hey for you to own this car is $36k. GREAT….well I personally don’t have $36k cash but I can borrow that from a bank, duh! Well based on my credit and income I have to trade the car in and get a cheaper car to finance. Fine no problem. I searched and found the car that fits me best at the right price that will contribute to helping me get back on my feet by cutting down on my expenses ( the 530i, which i completly fell in love with and is helping me get over having to can the vette...now i have to give it back)

GMAC SAYS HOLD IT. So the current lessee won’t buy it from us for $36 thousand and change. Well then If he wants to trade it in and sell it to a dealer, no problems give us $5000 more and it’s yours. What’s that? Your market for this car is soft is it? Well too bad because I’m selling it to you for the average national auction price because thats what we do, we screw the consumer and make it hard for you guys to sell a car. wont sell it to you for a cent less!


It’s as if GMAC really just wants to stiff me and keep me from getting out of the lease early without necessarily bending the rules. I question the legality of this not only because I am the one stuck in this car but for a dealerships stand point it is just as bad because now a custmer is less likly to close the deal due to the high neg equity

- But really in the end its I who pays the price...becuase the dealership only pays what they want for the car leaving the difference to the consumer in the form of negative equity. In this case its not a matter of complaining about excessive negative equity, its a matter of principle and cold hard facts that if used like it should be, benifits the lein holder (GMAC) the dealer and the consumer...stuff like this is probably why they are on the path of going down...I know GMAC is bleeding money right now, hell GM as a whole is.. but this is no way to conduct business...they're contradicting themselves over and over by continuing to display such tactics to the consumer and dealer.

My finance director of 20 years...General Manager...everyone that i know whos been in the business for a long time is just as stumped as I am and feel GMAC is at fault and wrong on all accounts...