Hello - I am currently leasing a Chevy Trax from GM finance that matures in 2 weeks. This is a car that I leased in my name for my daughter who is a college student. My daughter is still in college so has a very limited credit history. I believe her score is maybe 680 or so because she only has 1 credit card (only credit she has ever had)
Anyways - I Am highly considering doing a lease buyout on this vehicle when it matures. I believe the residual is around 13K. My goal is to get some type of 36 -60 month loan for this in my daughters name instead of mine so she can start making payments and hopefully it helps build her credit profile
What is the best way to achieve this? Will GM work directly to provide a loan in her name or will they force me to buy the car out first and then sell to her after the fact? That option wouldnt seem to help her credit building goals because she needs a loan of some type and I don’t want to get stuck paying taxes twice either. I think private party loans are also several percentage points higher
If someone could share some advice or direction for this situation I would really appreciate it. Is this something a dealer might be able to help with or is it strictly GM finance issue ? Thank you in advance
My guess is that her income has to be over $13k in order to get qualified on the car & she’ll need to have some sort of employment to show, otherwise they will mandate you to cosign.
As far as I know, cosigning will still build her credit.
Also are you sure you want to buy out the trax? $13k is too much money for that car imo
They can’t force you to do anything, but you can’t force them either. I would be shocked if GMF is allowed to sell the car directly to a member of the retail public (your daughter) in your state.
IDK your state but I bet they can only sell to you as the lessee or to a dealer.
This is all a non-starter if the RV is way above fair market value for the car.
Thanks M3. The mileage is pretty good, only 35K ( contracted for 36) but there is slight damage to the rear Bumper (cosmetic, no body damage). I guess I am worried I will be hit with a disposition fee of 350 + bumper damage + whatever else they want to nickel and dime me for. My experience with GM finance in the past hasn’t been the greatest as far as lease end charges so that was part of the thinking.
Honestly find a cheap body shop to fix the damages. Don’t get ripped off though. A bumper fix on a trax should be damn cheap. & I think if you want something reliable & long term a toyota is probably the way to go.
It’s worth getting a carvana/shift/vroom buyout quote to see how far you actually are off.
If your residual value is in line with the selling price that dealers are advertising used ones at, you’re going to be taking on a lot of negative equity.
I’m sceptical because 2018 CPO asking prices start below your RV… that means 1 year of the factory warranty plus 1 year of the CPO (and a powertrain warranty that goes on a bit longer).
Plus I’m sure the promotional CPO APR is much better than what your daughter would get for a private party loan to buy from you.
But why are you so fixated on buying this car out? Buy your daughter a better-built, more reliable car with better resale value.
I guess I just don’t want GM to screw me with a huge lease end bill. On our BMW and Acura- they have never charged us a dime even when we have had minor scratches and damage . Heck bmw even credited us back money for being under mileage. My son returned a Malibu last month and we got a bill for almost 1300 for a car that was in almost mint condition. They charged for everything under the sun. I guess I just don’t trust GM finance at all. It sounds like it’s best to just wash our hands of this and find a corolla or civic for her.
Definitely schedule a pre-lease-end inspection and fix any flaw that they point out. Substantially cheaper to fix anything than to let them fix it.
Slap on used tires if needed.
I’ve returned several leases (M-B & BMWs) never had to pay anything fortunately.
Also bringing this up again, but are you 100% sure she’s gonna need a car given the current climate? Most college-kids I know have online classes till at least end of 2020, many have it till June 2021. Double check and verify because that’s $$$$ saved on payments, insurance, gas etc.
& if school is resumed in the fall, it’s very easy to lease one of the cars that you’re talking about. So no point in rushing it
She works also so would definitely need a car. We are in Ohio and most schools are going back to on site classroom learning in the fall. I wish she didn’t need a car as it would save a Lot of money I thought most states were resuming in the fall with exception of places like California and the northeast
If she works & has a job, she should easily be able to lease a corolla or something in her own name.
I know several people with a profile similar to hers that have been able to do that.
Oxford, penn state, Canadian colleges, and some local ones to me are doing online only for the first semester.
Honestly, see how much negative the car has, and what damages you’ll need done. If you’re considering eating thousands in $$$ on buying out the car, okay then. But realistically figure out how much you need to do to walk away clean, and look into a cheap japanobox. CPO accord or Camry would be more than enough no…
For 13.9k, you can get a cpo ‘16 Honda Accord With 11k miles and clean carfax for 60 months @ .99%. That’s solid as hell.
