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GM Financial halts lease-end payoffs with non-General Motors dealers


jasonj80

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For a lessee who want to sell his / her leased car to some independent dealer buying the car from GM / Honda/Acura first and then selling it means they have to pay sales tax and registration fees that may cost thousands of dollars extra. GM and Honda are violating the federal anti-trust laws by eliminating or restricting the independent dealers from the market the big auto manufacturers have dominated. Every lessee is entitled to sell his car whenever he wants to and to whom ever he wants to as long as he pays the payoff amount which is included in the contract. GM and Honda see that used car values are up due to pandemic and they are trying to make more money by violating a long accepted practice in leased car business. 

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On 6/27/2021 at 5:21 AM, akirby said:


Ok so that’s exactly what I was thinking.  The leasee isn’t being screwed out of the extra money, they just have to go through a couple more steps to get it.  And you’re right that some buyers won’t do it and of course it’s meant to benefit the dealers.  
 

Hard to blame GM for simply enforcing their contract terms to help their dealers who have almost no vehicles to sell.   I didn’t even know that turning in a lease to a 3rd party was an option.

If a lessee has to buy a leased car first then sell it to another dealer he has to pay sales tax and registration fees. That is how Honda and GM are abusing the system and the consumer.

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On 6/24/2021 at 4:54 PM, jasonj80 said:

I don’t think so, I actually would assume this is going to violate some state antitrust and consumer laws. Say a dealer will not offer you any money for your pickup truck lease turn in. They can buy it and make a higher profit and you’re forbidden to sell to a carvana, vroom or another dealer that would offer you more money. 
 

This has all the markings to explode into a PR nightmare by GM, pisses off their existing customer that they are trying to screw and they walk back or don’t even start the program in July. 

Honda / Acura adopted the same policy. I filed a complaint with very effective Federal Consumer Financial Support Bureau (https://www.consumerfinance.gov/) and California Attorney General. I encourage everyone to do the same.

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51 minutes ago, long_time_Acura_owner said:

If a lessee has to buy a leased car first then sell it to another dealer he has to pay sales tax and registration fees. That is how Honda and GM are abusing the system and the consumer.


The contract  that the leasee signed and agreed to clearly states it has to be turned in to a dealer.  And Honda and GM make nothing on this - they’re enforcing their legal contracts to help their dealers.   

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23 minutes ago, akirby said:


The contract  that the leasee signed and agreed to clearly states it has to be turned in to a dealer.  And Honda and GM make nothing on this - they’re enforcing their legal contracts to help their dealers.   

Not true.  Both Honda and GM clearly stated that they want to have their dealers to have "quality used cars." That is a benefit to both GM and Honda as their dealers profit directly benefits the factory. Problems is if they want to have quality used cars then they should compete in the market.  I have terminated a car lease in the past and in the middle of the term by selling to an independent dealer who paid it off and Honda had no problem with it. Why they suddenly decided to change it? Because instead of supporting their dealers by direct financial assistance or direct discounts to dealers they are taking away a long stablished practice in car leasing business. It is a well understood and accepted term that lessee can sell the car to whomever he wants whenever he wants. That is why on my monthly statement from Acura they show the CURRENT payoff (not the end of lease payoff) 

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59 minutes ago, akirby said:

Dealer profits do not help mfrs.  Period.  Just because you don’t like it it doesn’t mean it’s wrong.

Really? How dealers became dealers? They spend millions to get a dealership from a car manufacturer.  More investment dealers do more profit  car manufacturer makes. Without dealers making good money car manufacturers cannot keep nor expand their market share and customer base. Dealer profit has everything to do with a car manufacturer success. You need to learn a little bit of critical thinking instead of just repeating clichés.  What Honda would have been without its dealers?  Dealers cannot sell cars if they do not make profit.  More profit they make more car they can sell. PERIOD.

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1 hour ago, long_time_Acura_owner said:

Really? How dealers became dealers? They spend millions to get a dealership from a car manufacturer.  More investment dealers do more profit  car manufacturer makes. Without dealers making good money car manufacturers cannot keep nor expand their market share and customer base. Dealer profit has everything to do with a car manufacturer success. You need to learn a little bit of critical thinking instead of just repeating clichés.  What Honda would have been without its dealers?  Dealers cannot sell cars if they do not make profit.  More profit they make more car they can sell. PERIOD.


And you need to learn how businesses work.  Dealers are independent businesses.  Ford gets profit from selling new vehicles and warranties and financing.  When dealers sell used cars or perform service Ford gets nothing.

 

Do they want their dealers to do well?  Of course.  But dealer profits do NOT “directly benefit” Ford.  
 

If you don’t want to believe that then fine just let it drop.

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