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Hummer H3 Lease Questions

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Comments

  • Car Man,
    I posted back in Oct. 2006 about a H3X that I leased. Here is the deal to refresh your memory:
    MSRP $43,815
    Lease Price $41600
    Cap Cost Reduction $1228.81
    Length 36 Months
    Lease Rate 4.45
    Residual Value $25412.70
    Rent Charge $4602.20
    Total Money down $2500.00
    Monthly Payment $604.51

    About a month later in November, I went back to the dealership and asked them why I was paying a point higher on my lease rate since I have excellent credit. The sales manager at first said that I was mistaken and that I was paying 3.45. I showed him my original notes from the deal and he ran the numbers and he then agreed that I was paying 1 point to high. I asked him if he could give me a break down as to how they came up with the lease payment. He said that it was a complicated formula and that he would have to get the breakdown from GM. I gave him my cell number and fax number and asked him to contact GM and get the formula and break it down for me by plugging in my deals numbers and then we could get an idea of how much money would be refunded back to me. He then said that he would do that, however, he could not change the deal through GM. He said that I would have to continue paying GM the incorrect (larger) monthly payment and the dealership TURNERSVILLE HUMMER in NEW JERSEY, would simply refund me the balance in one lump sum. Well it has been 4 months and I have not even received a phone call, let alone a refund check. Can you help me with this? I feel like I have gotten ripped off. What should my next step be?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi ryano1. If you are able to take advantage of GMS pricing, I am surprised that the lease payments that you were quoted by these dealers were not all exactly the same. GMAC's current base lease rate for the 2007 Hummer H3 is 4.6%. Shame on your wife's uncle for trying to mark up your truck's lease rate :mad: .

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi ppete1. The lease rate that you were quoted for this truck is right in line with GMAC's current base rate for it. this is a good sign because it means that this dealer is being straightforward with you about this aspect of your deal. The dealer invoice price of the truck that you described is right around $29,100. Plus GM is currently providing $950 bonus cash on it. That brings us down to $28,150. The selling price that you were quoted is only a couple hundred dollars above that, which is a good deal. If you like the truck, I personally don't see any reason not to go for it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello sinnombre. GMAC's current base lease rate and residual value for a 36 month lease of a 2007 Hummer H3 with 12,000 miles per year are 4.6% and 61%, respectively. The $950 reduction that you are being given on this truck is bonus cash that is being paid for by General Motors. You should be able to negotiate an additional dealer discount on top of that.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi felbie1. Unfortunately, the customer cash that General Motors is currently providing on the '07 Hummer H3 is not compatible with leases through GMAC. GM is providing $950 bonus cash that can be used to reduce the capitalized cost of leased vehicles though. The fact that you are able to purchase this truck through GM's supplier purchase program is helpful. So is the $1,750 GM card credit that you've earned. Have the dealer use a capitalized cost of the supplier price minus the $950 bonus cash minus the $1,750 GM card credit to calculate your truck's monthly payment. Also, make sure that the dealer is using GMAC's base lease rate of 4.6%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi kris18. The lease rate that you were quoted for this truck is slightly high. GMAC's current base rate for the '07 Hummer H3 is only 4.6%. Make sure that the dealer that you are working with uses that rate to calculate your lease payment. As far as the price that you were quoted goes, the truck that you described has a spread of around $3,350 between its full MSRP and its dealer invoice price. That means that you are probably at around $1,650 over invoice or so right now. That's enough room that it wouldn't hurt to try to negotiate with this dealer a little more or to comparison shop with another dealer or two to see if you can beat this price.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi johnnyd5555. It looks to me as though you caught the dealership marking up your lease rate to add additional hidden, back-end profit to your deal. This sort of thing is perfectly legal and actually happens quite frequently. This is why it is very important to research what the base lease rate is for the vehicle that you are interested in prior to finalizing your deal. Now that you have physically taken delivery of your truck this dealer is under no obligation to refund you any money. It sounds like they are just trying to put you off in hope that you will eventually get tired of hassling them and go away. If you make enough noise you may be able to get the dealer to do something for you, but I wouldn't count on it.

    Car_man
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  • where did you get this deal? can you tell me the city, state and dealer name?

    thanks
  • ppete1ppete1 Posts: 2
    Hummer of Pleasanton, Pleasanton, California...
  • holsonholson Posts: 4
    Hello,

    For a 24 month 10k miles/yr lease on a base $29995 Hummer H3,

    I was quoted $4399 out of pocket. ($3000 cap cost reduction, $208 1st mo payment, $150 sales tax on the 3k, the rest is titles/regs/fees + acq fee)

    The monthly payment is $208 (incl. 5% tax).

    It seems decent to me, what do you guys think? I used the 4.6% rate for a car that costs $28k and a 72% residual and the numbers were very similar. Could I do better?

    I'm probably going to try and put $0 down.

    Rgds,
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello holson. You never mentioned the selling price of the H3 that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

    General Motors is currently providing a $950 bonus cash incentive on leases of the 2007 Hummer H3. Make sure to take this cash into account when negotiating the capitalized cost for your lease.

    Car_man
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  • dognut2dognut2 Posts: 1
    Hello to all.This might be my 1st lease.My local florida dealer has 07 H-3 delux w/auto for msrp $35415. on sale for $30415. lease for $299.month, $3500. down,$1800.tax,tag,title etc. 39 month lease.10000 miles a year.If my trade in value is $13000. and I have done the math right,I show $101.a month.Did I do this right? Or am I missing something.Thanks, bob
  • akr11akr11 Posts: 1
    I wonder if this is a good deal: 2007 H3 with luxury package. 10k miles, 39 months. $410 per month. Paying nothing upfront but inception. Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello Bob. Since you are new to leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    I see that you are considering trading your current vehicle in when you lease your new Hummer. There's nothing wrong with doing this, but it would be in your best interest to have the dealer that you're working with cut you a check for your trade rather than using the proceeds from it as a down payment for your lease. I always advise consumers against making large down payments when leasing. Those who make them, risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hello akr11. You never mentioned the selling price or MSRP of the H3 that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.

    When negotiating the selling price of the H3 that you're interested in, make sure that you take advantage of the $950 (that's a strange number isn't it. Why not just make it $1,000?) bonus cash that is currently available on it.

    Car_man
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  • jhuffmanjhuffman Posts: 1
    Hey Car_Man,

    Thanks for taking my question. Does a residual value of 28,795 sound "kinda" high. Should'nt it be around 20-23,000 on a 39 mos lease w/no money down w/10000 miles a year, on a 07 Base model H3 w/tow package and xm radio. My salesman gave me this number before he even ran my application. I should know the Money Factor...right? I have a Chevy S-10 Zr2
    that I still owe 10,885 on and I figure I have close to 4500 in equity in it and they offered 12000 for it. Should I negotiate more for my trade? Fair market value for it is around 14,000-16,000

    Any advice would be greatly appreciated !

    Thanks,

    Jeff
  • 2007 Hummer h3 Base w/sunroof and side running boards...vehicle is Boulder Grey...they paid off $900-on my last veh leftover payments...MSRP $33,950
    Lease Price $32,400
    Cap Cost Reduction $1500.00
    Length 39 Months
    Lease Rate 4.0
    Residual Value $20030.50 Rent Charge $3502.96
    Total Money down $1687.40
    Monthly Payment $425.87...CAN ANYONE TELL ME HOW I DID AS A SINGLE GIRL GOING TO BUY A CAR BY HERSELF??? Thanks
  • piepiezzzpiepiezzz Posts: 2
    I was just quoted:

    H3 Black/Black Tactical Edition

    GM plan
    MSRP 35,135
    Sell 31,199
    Sign and Drive (other than plate transfer)
    39 months 39,000 miles
    $409/month

    I believe this is a good deal......

    Does anyone know the best way to get out of another GM lease with 11 months left?
  • mikeb10mikeb10 Posts: 8
    Sometimes they have an early lease exit if your buying another GM ask the salesman. They offered me an early exit when I bought my H3 but was under 6 months. 11 months is a little long.
  • steevosteevo Posts: 330
    Call gm and get the current buyout price for your car. Remember that a Dealer will not pay tax to buy so get that number if available. If the car can be sold for more than that number, you should be able to trade it in. Its essentially the same as trading in a car before the loan is payed off.
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