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Discussion Starter · #1 ·
I've always done 36 month leases on my cars because that is when the bumper-to-bumper warranty expired.

Since the Enclave has a 48 month bumper-to-bumper warranty, does it make sense to do a 48 month lease? Or are most people going with 36 month leases?

Thanks for any input!
 

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The 48 month residual drops off pretty dramatically -- personally, I would not recommend a 4 yr lease -- if you drive 1,000 miles a month, you will DEFINITELY need to replace tires by the time you turn in the Enclave. And if you have a CXL with the 19" Michelins, you're looking at around $200 per tire + tax -- you can probably figure $1K to replace them all and you won't likely get away with not doing it with that kind of mileage.

Why not go for a 39 month lease?
Most dealers haven't seen this term but it's actually more attractive than 36 months in some cases. Example:

39 Month, 10K miles per year, Residual is 64% (1% more than the 36 month 10K lease!)

Money factor on GMAC leases is .00333 (8%) but most dealers are greedy and will mark up the lease rate to 9% (adding about $30 a month for every $1,000 leased on a 36 mo lease)

36 Month – Residual 60% of MSRP/15K miles
36 Month - Residual 62% of MSRP/12K miles
36 Month - Residual 63% of MSRP/10K miles

48 Month – Residual 52% of MSRP/15K miles
48 Month - Residual 54% of MSRP/12K miles
48 Month - Residual 55% of MSRP/10K miles
 

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Discussion Starter · #3 ·
Thank you so much for that advice and helpful information! Yes, I was wondering about replacing tires as that is the situation I'm in with my Sequoia which is coming off a 36 month lease in Dec. I'm afraid they're going to charge me for tires as part of the wear and tear.

The lease rate and residual values are very helpful. Do you happen to know the lease rate and residual value for a 39 month 12K lease? 10K is just not enough for me.

Thanks!!
 

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Unfortunately no -- I can guess, based on the GMAC formula it should be 63%. Only if you get an honest dealer will you be able to confirm that. Your best bet is to assume it's 63% and simply tell the dealer you want to confirm the terms of lease up-front (63% residual on MSRP -- RV is always based on MSRP, and lease rate of 8%).

The lease rate is the same from GMAC for all terms -- it's an 8% "Buy Rate." That will really tick your dealer off that you know this as they will undoubtedly try to mark it up 1% or more. Every dealer we talked to was doing the same thing.

If you haven't leased before, I'd suggest looking up another thread on leasing in this forum where I posted how you can easily calculate your monthly lease cost -- if you don't know how this works or don't know how to do it, you're doing yourself a disservice and will be at the mercy of the dealer. When I asked the finance guy about this stuff, he literally had to look it all up because he just "plugs it into his computer" and really didn't know how it was calculated.
 

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Discussion Starter · #5 ·
Thanks again -- I will look up your thread on lease terms and how to calculate.

We have leased before and this type of info has been very helpful so I just have to refresh my memory on how to do it every 3 years!

If most dealers are marking it up by 1% to 9%, then is it possible to ask them to use the 8% money factor? In other words, are they able to do whateve they want or are they required to use the 8% if the customer requests it?

Thanks!

Edit: I just calculated the lease info and it appears that the dealer is marking the lease rate up to 9%.
 

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baseballmom94 said:
If most dealers are marking it up by 1% to 9%, then is it possible to ask them to use the 8% money factor? In other words, are they able to do whateve they want or are they required to use the 8% if the customer requests it?

Thanks!

Edit: I just calculated the lease info and it appears that the dealer is marking the lease rate up to 9%.
You're welcome!
No surprise that they've marked it up to 9% -- and of course, now that you know, you can at least try to negotiate this with them. You may be able to get them to meet you half-way, which would save you about $13 a month. It's not a huge amount, but it's better in your pocket than theirs!
 

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Here is a re-post of my recent Enclave Lease Acquisition:

Since this site has been great for gathering Enclave info, I thought I'd share some particulars of my quick acquisition. Getting ready to put my summer cars away for the winter, I began my search two weeks ago for a winter car for business ands some personal use. After e-researching the M5, Q7, and XC90, I thought the Enclave provided the most features for the buck. Visited a local dealership, told them I wanted an AWD, fully loaded CXL, in White Diamond Tricoat. Salesman called back the next day saying they have the exact car coming in within a week; from their August order allocation. To my amazement, the Enclave arrived two days ago and I am bringing it home tomorrow. Eighteen days for the whole process, so I feel a bit lucky.

Qualifying for the GM Employee Pricing, here are the details of the transaction:

Purchase Date 10/11/07
Model Year 2008
Trim Level CXL AWD
MSRP 46,210
Invoice ?
Price Paid w/GM Employee Discount $ 41,091 (Cap Cost)
Color WDT
Lease Fees:
GM Lease Protection 595.00
ACQ Fee 695.00
Lisc/reg/misc 279.00

36 Month Lease Payment, 15,000 miles per year, including Tax $ 692.00
-0- Down, -0- Fees paid up front, -0- tax paid upfront. I rolled everything into the lease payment. I will give them a check for $ 692.00 tomorrow when I pick up the car. Also, I'm not a big fan of aftermarket protection plans with leases, but the Lease Protection gives you up to $ 200.00 in mileage overage allowances; in addition to protecting me from some excess wear charges that may incur from my two children.

I really wanted to just buy the Enclave outright, but the tax advantages with leasing were just far superior in my situation. I know the lease rate of 8% is ridiculous. and the residual of 60% could be better, however it is the price I decided to pay for a vehicle I feel compares very favorably against more expensive alternatives. And...basewd on the reviews from all the owners, it should not disappoint!! I am looking forward to driving it home tomorrow!

Hope this info helps others. Feel free to ask for more info.

Thanks, all.

Also, I purchased the GM Lease Protection for 595.00 which provides a 200.00 credit in mileage overage allowance (.15 mile). Also, it covers up to 5,000.00 in excess wear in addition to tires. I also thing I read the 4 yr/50K bumper to bumper warranty covers tires, but not sure. And yes, this really is a fine vehicle.

Mark
 

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mr4enclave said:
Lease Fees:
GM Lease Protection 595.00
ACQ Fee 695.00
Lisc/reg/misc 279.00

36 Month Lease Payment, 15,000 miles per year, including Tax $ 692.00
-0- Down, -0- Fees paid up front, -0- tax paid upfront. I rolled everything into the lease payment. I will give them a check for $ 692.00 tomorrow when I pick up the car.

Hope this info helps others. Feel free to ask for more info.

Thanks, all.

Also, I purchased the GM Lease Protection for 595.00 which provides a 200.00 credit in mileage overage allowance (.15 mile). Also, it covers up to 5,000.00 in excess wear in addition to tires. I also thing I read the 4 yr/50K bumper to bumper warranty covers tires, but not sure.
Are you sure you don't have your lease fees reversed?
GMAC acquisition fee has been $595 for some time.
Never heard of or offered the "Lease Protection" but your extra miles are typically .20 per in a 15,000 mi GMAC lease.
If it truly does cover tires -- I'd really think it would be helpful for folks here to know more about this GMAC offered protection because the tires could cost you upwards of $1K if worn out, and they likely would be nearing that at 45,000 miles. Can you post an image of the document or brochure so we can see what it offers?
 

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Mark, Do you have a contact number for the Lease Protection? My dealer gave me the exact info verbally but when I called GMAC finance directly to confirm they said they didn't have that option. I spoke to Stephanie. I was upset that the dealer was screwing me around but now it appears he is truthful. I really want to see it in writing. He stated you could have bald tires at turn in and have up to $5,000 in damage on the vehicle but at max $1,000/ quarter. I am still debating on the lease vs buy of the Enclave.
 

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Looking at my lease contract:

the acq fee is 695.00 (so they probably made an extra $ 100.00),
the GM lease protection is $ 595.00 (it covers $ 1,000.00 per occurrence and up to $ 5,000.00 max. also cover up to $ 200.00 in mileage charges over my 45,000 allotted miles and also covers tires), my cost per mile over 45,000 is .15 per mile.

Don't have a contact number,the dealer gave me a non-descript pamphlet on the lease protect, but as soon as I get the contract on it I will pdf.

Regarding tires, obviously I will change them based safety, not when the lease is up, but heck I'd keep the bad tires and put them back on right before I turn the lease vehicle in.

With the Buick program buying is the better acquisition in most situations. As a business use vehicle, the lease write off was better for me.

Hope this helps.

Mark
 

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I do NOT believe this is a GMAC product. You can visit GMAC's website http://www.gmacfs.com/us/en/personal/automotive/index.html and you will not find it there. I looked in the GM Protection Plan category as well -- there is a MAINTENANCE plan that does cover wear and tear items like brakes, but nothing in there specifically for leases and wear and tear on the exterior or interior of the vehicle -- nor anything on there about tire coverage.

I would be REALLY suspect of 3rd party coverage -- and I will bet that is just what it is -- 3rd party. Good luck getting coverage with 3rd party payments, my own experience in the distant past with 3rd party extended warranty was not pleasant, that's for sure. But, you are right about leasing with regards to business -- if you can write it off, that's definitely the better way to go.

Enclavious,
If you have a trade and want to trade, you either should get the dealer to cut you a check if you plan to lease -- or buy. Any money into a lease is money you have at risk if your car gets totaled. Insurance will pay the leasing company to make them whole (they own it) and you're out whatever you put down.

The lease RV's are good -- and look likely to hold up pretty well based on demand and the good chance future models will be going further upmarket in price. Buick's reliability is getting good pub too, so that will help. If you have no trade and no money to put down on a purchase, lease is a great way to go, just that the dealers are robbing people however they can, not just with little negotiation on price but also on the financial terms of the lease (and/or adding crap into the lease cost because all you see is a payment going up a bit).
 

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I only have one more payment on my current lease and then I am turning it in, not trading in, b/c the residual is too high.

I'm debating on the lease vs buy scenerio this time b/c we have access to the GM supplier discount which comes in under invoice. I normally lease b/c I get very bored with my auto after a few years. I've had 4 new in 10 years and that urge will probably not change. The lease rate and the purchase rate are basically the same but I'm thinking that the buy may be better this time b/c I won't have to worry about over mileage and wear and tear (although I take great care of my cars) and trading in three years from now may not be a huge loss since there is such a demand and I'm already getting it at a discounted price. I'm open to suggestions b/c like I mentioned I'm normally a leaser and don't have to deal with the loss of a trade in.
 

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I'm assuming you've run the numbers -- just as an FYI, with the suggestion on this forum about financing (penfed), they have 5.29% for up to 72 months, which is pretty good. If you borrowed $37K with nothing down for 72 months, you're looking at about $600 per month. You'll have paid $21,600 with $21,600 to go. You'd have to "crystal ball" it and wonder what your Enclave would sell for. At a 60% residual, if this car stickered for 35 + change and OTD was $37, you wouldn't likely get much more than $20K on trade -- maybe you could get $23K to $25K private party sale.

Really, it's a wash if you're selling/trading in 3 yrs or so -- in my book, I'd lease and let GMAC take the risk.
 

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mr4enclave said:
Here is a copy of the Smart Lease Protect Plan.

If it is a third party program, they sure are using the GM and Smart Lease name a lot. I need to get more info.

Mark
Mark -- that is a GM Insurance product -- so you're right there. Just google smart lease protect and you'll come up with the dealer tips for selling it. It doesn't show up anywhere on the GMAC Financial services website but on the affiliated GM Insurance products website. I'd be interested to see the fine print of what it actually covers in detail and what exclusions there are.
 

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desgnconcpts said:
Mark -- that is a GM Insurance product -- so you're right there. Just google smart lease protect and you'll come up with the dealer tips for selling it. It doesn't show up anywhere on the GMAC Financial services website but on the affiliated GM Insurance products website. I'd be interested to see the fine print of what it actually covers in detail and what exclusions there are.
Since it has GM's name on it, I sure hope it has some credibility. I'll be contacting my dealer tomorrow to get the actual agreement. BTW, they waived the security deposit in lieu of getting this "protection". If I did not opt for the protection, then a security deposit was required. If I fought, I probably could've waived the deposit, but was happy with the total package. Quite fortunate that I first considered the Enclave in late September and took delivery from a dealer allocated car that came in last week. And it is a very nice car, with very nice features and a great family hauler in style. Good job Buick!
 

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While I think of it, the Enclave Product Brochure, states that the warranty 4 yr/50 K warranty covers the "complete car" including tires, towing etc. Does that mean normal wear?? Just a thought.

Mark
 

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baseballmom94 said:
Thank you so much for that advice and helpful information! Yes, I was wondering about replacing tires as that is the situation I'm in with my Sequoia which is coming off a 36 month lease in Dec. I'm afraid they're going to charge me for tires as part of the wear and tear.

The lease rate and residual values are very helpful. Do you happen to know the lease rate and residual value for a 39 month 12K lease? 10K is just not enough for me.

Thanks!!
My dealer quoted a 8% rate for (.0033 factor) for the 36 and 39 month lease. Residual was 59% for 39 months and 60% for 36 months, with 15,000 miles/year.
 
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