Labor Day 2011 BEWARE ALLY Bank Lease Deals
As the Labor Day holiday clearance sale hoopla kicks into high gear with especially LOW lease deals for $199.99 – $ 299.99 a month and such I beg you to BEWARE of LEASES contracted with ALLY Bank.
Ally is formerly the GMAC leasing program, which was spun-off from General Motors during the bankruptcy a year ago. Ally now controls a lot of the branded dealership finance and leasing for GM, Chrysler, Dodge, Jeep, Cadillac, Chevrolet, and many other dealerships who elect to use them as a banking resource.
2011 clearance advertised low price lease deals on Dodge, Chrysler, Jeep, Chevy, General Motors and Cadillac models.
ALLY leases are not for the uninitiated or even the savvy leasee. These are not good lease deals for the consumer and I suspect that during the LABOR DAY blow-out sales rush, the exact terms and conditions may not be properly disclosed by the dealership employees, by mistake or otherwise.
Let me be perfectly clear about these ALLY lease deals.
1. In the ALLY contract the residual is a figure from which the actual cost of the lease will be derived based on the percentage of depreciation. Their residual value of the car at the end of the lease term is NOT the BUYOUT or PURCHASE OPTION PRICE, as it is in almost every other lease contract by other companies like: Toyota, Honda, Nissan.
2. On the ALLY lease contract, the LEASE END-OF-TERM Purchase Option Price is exactly $2500.00 HIGHER than the residual. THE EXACT DOLLAR AMOUNT is typed on the contract. This is the penalty for doing business with this company, as this FEE is PUNITIVE.
3. This $2500.00 is non-negotiable, at the time of the contract, and there is no place on the contract that says you can negotiate this fee at the end of the term.
4. If you believe you want to buy the vehicle at the end of the lease, or could POSSIBLY be forced to buy it due to wear and tear conditions or HIGH miles, then insist on a different lease company. The rate may be slightly higher, but if the dealership FAILED TO DISCLOSE the BUYOUT FEE during negotiations, you certainly have a case for walking away BEFORE YOU SIGN.
5. If you signed the contract and then read the fine print, the only thing you can do is argue that it was not disclosed. In many states, the dealership insists you initial next to the following clauses, so you can’t say it wasn’t disclosed upfront. Those would be: the cost per mile of over-mileage, the penalty for getting out of the lease early, and the BUYOUT FEE!
6. You are NOT, I repeat, NOT required to purchase the vehicle at the end of the lease if you do not want it. You will NOT be subject to this $2500.00 surcharge if you DO NOT BUY IT, however, you will still be subject to charges for over miles and excess wear in the event you turn the car in with any discrepancies in condition or allowable miles.
7. There may also be a lease end termination or disposal fee on some contracts, this is subject to the make and model you are leasing.
SO please BEWARE of the ALLY LEASE, when considering one of these too-good-to-be-true LABOR DAY holiday advertised lease deals.
NORE ARTICLES ON 2011 Clearance END-of_MODEL Year Deals
MORE ARTICLES ON LABOR DAY MODEL YEAR END CAR SALES CLICK HERE
ANOTHER ARTICLE ON 2011 HOLIDAY REBATES AND CLOSE-OUT YEAR_END
TOYOTA, HONDA, DODGE and others…YEAR-END REBATES AND INCENTIVES
10 Tips for 2011 LABOR DAY Car sales
If you have any questions or need car buying advice, please feel free to contact me using the submit form below. Advice is always FREE with MyCARLADY!.
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