General Motors and Chrysler Group have introduced a new program in some areas of the country where they will buy back your car after four years at a set price. GM and Chrysler Group both work with Ally Financial as their preferred lender for new-car financing, and with Ally’s new program, called Buyer’s Choice, the lender will buy back your vehicle if you decide you don’t want it anymore.
Ally’s program is good on purchases of new 2011 and 2012 Chevrolet, GMC, Cadillac, Buick, Chrysler, Dodge, Jeep, Ram and FIAT vehicles with loans ranging from five to seven years. At the start of the loan, Ally will give you a predetermined price of what the car will be worth after four years. If you choose, you can sell it to Ally at that time, or continue to make payments for the rest of the loan.
Ally says in a statement that its new program “delivers the best of both worlds for customers who want the advantages of both buying and leasing.”
Kicking Tires says that by getting the four-year value of the vehicle up-front, buyers can avoid being underwater on their loan after four years. “The program should offer a degree of assurance to shoppers wary of buying from GM or Chrysler, given each automaker's bankrupt past,” Kicking Tires reports.
Automotive News says that buyers aren’t locked-in to the four-year mark if they want or need to sell their vehicle. “As with any other loan the customer could sell or trade in the vehicle at any point,” Automotive News reports. “But the preset price applies only in the 48th month of the loan.”
Hyundai offers a similar program, called the Hyundai Assurance Trade-in Value Guarantee. When you buy a new Hyundai, the automaker gives you a guaranteed value of what your car will be worth after two, three and four years. Hyundai’s program only applies to buyers who trade-in their Hyundai vehicle toward another new Hyundai though. The automaker will give you the guaranteed value when you’re ready to trade it in, or if it’s worth more at that time, Hyundai will give you the higher amount.
The Ally Buyer's Choice buy-back program is available in California, Florida, Illinois, New York and Texas, and Ally says it will add more states over the coming months.
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