General Auto Loan Information

GMAC Loans: 3 Lease Options to Know About


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GMAC loans and leases allow borrowers considering General Motors Vehicles the opportunity to have a low monthly payment and drive a new GM vehicle more frequently than if they financed each purchase. GMAC offers three lease options that you are most likely to encounter: GMAC SmartLease, GMAC SmartLease Plus and GMAC SmartLease low mileage lease.

GMAC SmartLease
A GMAC SmartLease is a traditional closed-end lease agreement that is for a fixed term between 24 and 48 months and a fixed number of annual miles. You will make the agreed upon monthly payments, which are based on a monthly depreciation charge and a monthly rent (interest) charge. After beginning your lease, you can make advance payments or pay off the remaining payments in full at any time, all with no prepayment penalties.

GMAC SmartLease Plus
A GMAC SmartLease Plus is a one-payment lease option that offers a lower money factor than a SmartLease. The underlying requirements of a SmartLease Plus are the same as a SmartLease, in that you will drive no more than a pre-determined number of miles in a pre-determined number of months. However, with a one-payment lease, the outstanding balance is due at the time of lease signing. In exchange for making your payment at signing, you will receive a slight discount on your money factor/APR.

Low Mileage Lease
A GMAC SmartLease low mileage lease is one that allows the lessee a total of 10,000 miles per year for the term of the contract. While a low mileage lease will help lower your monthly payment because of a higher residual value (less miles driven results in less depreciation), be careful with your mileage. You will be charged 25 cents per mile for each mile in excess of your contracted mileage.

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