End of Smart Buy options
My GTO is my second GMAC Smart Buy. I went with it because I can modify the car as if it was my own yet I have the option of simply letting go of it at the end of the contract. In a lease you can't modify the vehicle. Another nice thing about the Smart Buy is that you don't have to guess what the vehicle will be worth at the end of the contract since GMAC has taken the risk. So, if the vehicle depreciates more than the market average I minimize my risk. Same goes if it depreciates less than the market average.
These are your options at the end of the contract.
1.) Simply turn the vehicle into any GM dealership. If your miles are over the allotted amount on your contract you pay as set amount in the fine print. This may be something like 20 cents per mile. If you are under the miles in the contract, then you just turn the car in. Normal wear and tear are taken into consideration.
2.) Finance the remaining balloon payment balance. With a Smart Buy you are paying for the cost of the vehicle during the time you keep it. So, if you have a three-year contract you pay for the usage of those three years. The balloon payment is the value left in the car that hasn't been paid. The remaining value (balloon) may be like thirty percent of the original purchase price. Oh, and the remaining value is in line with market values, so you won't have a difficult time finding a lender to refinance the balance at a good interest rate.
3.) You can sell the car on the open market. This is advantageous to you if the market for the car goes up better than average. Generally, only high priced imports or exotic cars will maintain a better than average resale value. Think BMW or Mercedes Benz.
I should note that you can haggle with the dealer a little over residual values and excessive mileage fees. But, be careful because most dealers don't write a lot of Smart Buys or Leases. Thus, each Smart Buy or Lease must be reviewed by GMAC for accuracy before the contract is final and valid. The contract on my GTO was rewritten three times before it was correct. After the second contract I started complaining and the dealer actually adjusted mileage fees to my advantage. I then received $700.00 cash in a no money down purchase after $5750 in incentives.