GMAC Smart Buy Car Loan

We purchased a car under a GMAC Smart Buy - lease with option to purchase with a balloon payment at the end of the contract. We could not afford the payments and tried multiple times with GMAC to refinance the car and they would not work with us. We turned the car in @ our local dealership. GMAC contacted us saying we owe the balloon of $27k on the car - even though we turned it in. They have now sold our debt to a collections agency.

Since this was a lease with the option to buy and we turned the car in do we owe the balloon payment? Now that they have sold our debt - what obligation do we have to the collection agency? Our credit shows a charge off from GMAC.

Comments for GMAC Smart Buy Car Loan

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May 18, 2010
debt from leased car
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

Unfortunately, walking away from a leased car that you can't afford does not leave you off the hook. As with a car you purchased, there can be a deficiency owed at the end of the lease.

Having said that, I don't know whether the amount the collection agency is trying to get from you is correct. You would have to try to find an answer to that question by talking with an attorney.

Since this is a large chunk of change, I would recommend you set up
a free consultation with a bankruptcy attorney to find out whether you owe the entire bill, and if you do, what your options are for dealing with it. I suggested bankruptcy attorney because they are usually quite familiar with consumer credit situations and the first consultation is free. However, you could also try to find a local consumer law attorney who specializes in consumer credit cases and meet with him or her.

I hope you're able to find a workable solution to this problem.

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