Smart Buy question for ya guys....

I am currently smart buying my 06, and at the end of the 3 years, I owe a balloon payment. That balloon payment is what I owe to "own" the car correct?

I plan on re-financing the vette after the 36 months to buy it. Am I forced to use GMAC to re-finance the balloon payment? If I am, I will be using traditional financing right? (ALSO: if I am allowed to traditionally re-finance, thats at whatever rates are current/what I qualify for correct?)

Basically I just want to make sure at the end of my 36 months, I can traditionally finance the "balloon" payment.
Ideally, I would like to refinance it, put a big downpayment down on the balloon and have a low payment for 36 more months. Essentially, I have my big payment for 36 months, then smaller for the final 36?
Thats not bad, 6 years for full ownership for Vette>?

Any SmartBuy experts, please clarify my options at the end of the 36 months. Keep in mind, I am definitely going to keep the C6 after the end. The Vette is not driven everyday, and I do have a daily driver. I have only approx 3,000 miles since March 06. So this car will have Super LOW miles at the end of the smart Buy.....And I plan on having this car for a LONG time!!

Thanks guys!!

 

Smartbuy is seldom smart. Don't know the curent interest rate but it is usually much higher than most lemders for new car loans. Check local credit union for rates, then decide.

 

Not an "expert", but I'll try to address this.
Note: I did use GM's "Smart Buy" years ago when I bought the new F-chassis Camaro (1993).
My expereince is based solely upon that, OK?

I had an acquiantance at the dealership I bought the '93 Camaro from who from I trusted. The '93 Camaro was really a HOT car in those days, and dealers were not budging off MSRP, in fact some (i'd heard of) had markups on the cars as Chevrolet simply didn't make a lot of 'em which held prices very firm.
The guy pitched "Smart Buy" (as opposed to a "Lease") to me this way:
"By using 'Smart Buy' I could drive more car for less money since I'd only be paying on the amount of car I used."

1) After the 3 year committment I could buy the car for the pre-agreed price. A gamble by Chevrolet since they really don't know what the market's going to be 3 years out, but no risk to me.
I "own" the car with a "Smart Buy" otherwise, but there'd be a balloon payment after the 3 years UNlike a traditional lease.
In short I was paying for ONLY the part of car I was using, NOT the residule.

2) HOWEVER let us say the car's value plunged due to a major recall/scandel etc. Even though I'd the OPTION to buy the car for +X$, it turned out it was only worth -X$.
I could hand the keys back to Chevrolet & walk away, OR, use whatever equity I'd accumulated in the car (the part I paid for) as a downpayment towards something else.

3) Now let's say the car's value was MORE than we agreed to (which is exactly what happened with the '93 Camaro due to low production numbers & high demand). I could buy it out at the agreed to buyout price, hand the keys back & walk, or roll over the equity plus what I gained towards another buy. There's one more option also under this circumstance. Sell the car privately & pocket the difference between the balloon & what I actually got by selling it privately.

With an ordinary lease one hands the keys back and/or negotiates a buyout price with the dealer and that's it.

See the difference?

 

Thanks...
I just want to make sure I can "re-finance" it as tradional financing after the 3 years at the balloon price? Am I forced to use GMAC for the re-finance? Or can I use third party financing for the balloon?

 

Yup, that's the deal.
Ideally the wholesale value of the car should equal the amount you want to finance, lest you must make up the difference.
That's the only catch but then any conventional loan on a preowned car would require that.

No, you're not obligated to use GMAC.
Where you get the money -- or who you get it from, for that matter -- to payoff the balloon is your business.

That's supposedly another facet of the "Smart Buy" flexibility.

 

they don't care where you get the money,but double check at the end because it may be cheaper to lease a brand new one rather than re-fi the rest of the money and pay the extra interest.AND YES,it will be rates at that time and what you qualify for.Good luck and enjoy the vette!Do the math as far as what it'll really cost you for what will be a 3 year old car at the time of re-fi,then see what the new lease will cost!

 

I'm thinking refiancing $25,000 (which is my balloon) is almost always gonna be cheaper than leasing a brand new one...