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2014 Chevrolet Volt Lease Questions

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  • kyfdxkyfdx Posts: 29,368

    @flapjackcrust said: For a California Volt lease, are these the minimum drive offs? Also, what are the amounts of each of these?

    Registration CA Tire Fee Electronic Vehicle Registration Doc Fee Acquisition Fee

    In CA, registration runs about 1% of MSRP, tire fee is $20 or less, EVR is another small amount.. Doc fee is capped at $80. Acquisition fee is somewhere around $600-$700.

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  • I leased a 2014 Chevy volt. Base price $34,995 36 month term 15,000 miles per year Dealer discount $4500 Lease discount $2400 Chevy private offer $1000 GM Card redemption $1000 Money factor .0004 57% residual $0 out of pocket

  • kyfdxkyfdx Posts: 29,368

    @flapjackcrust said: I leased a 2014 Chevy volt. Base price $34,995 36 month term 15,000 miles per year Dealer discount $4500 Lease discount $2400 Chevy private offer $1000 GM Card redemption $1000 Money factor .0004 57% residual $0 out of pocket

    So.. .what's the payment?

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  • alokpatelalokpatel Posts: 2

    Just wondering if i am getting a good deal !

    2014 Volt, Premium Pakage, Safety 1 & 2 - Neg price: 32,900

    No money down no fees no taxes all rolled into the monthly payment - only 1st month payment of 347.73 for 39 months with 10,000 m/year

    IS this worth pulling the trigger on ?

    Live in NY but deal is from NJ - sales tax is 8.25%

  • MichaellMichaell ColoradoPosts: 5,860

    @alokpatel said: Just wondering if i am getting a good deal !

    2014 Volt, Premium Pakage, Safety 1 & 2 - Neg price: 32,900

    No money down no fees no taxes all rolled into the monthly payment - only 1st month payment of 347.73 for 39 months with 10,000 m/year

    IS this worth pulling the trigger on ?

    Live in NY but deal is from NJ - sales tax is 8.25%

    What was the MSRP? Was this through Ally?

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  • icherub1icherub1 Posts: 11

    @kyfdx said: The lessee doesn't get the $7500 tax credit. The bank gets it, because they are buying the car.. If the lessee received the entire $7500 credit, then the residual would be a lot lower..

    I know the lessee doesn't get the credit, but I thought the credit came off the cap cost, as seems to be indicated in this thread and others. If both the cap cost and residual are affected by the credit, how can we determine whether a lease deal is a good one vs. one where the dealer is pocketing too much of the credit? Lease calculators seem useless if the credit does not just come off the cap cost.

  • kyfdxkyfdx Posts: 29,368

    @icherub1 said: I know the lessee doesn't get the credit, but I thought the credit came off the cap cost, as seems to be indicated in this thread and others. If both the cap cost and residual are affected by the credit, how can we determine whether a lease deal is a good one vs. one where the dealer is pocketing too much of the credit? Lease calculators seem useless if the credit does not just come off the cap cost.

    More than one way to skin a cat, I guess.. The bank could put a realistic residual on the car, then give the whole $7500 as an incentive.. Or, they could contribute half the incentive, but pump up the residual by 10%... Usually, they are trying to hit a payment that they think will sell the car. Who knows the financial engineering behind their decisions, and what they are trying to accomplish, otherwise.

    One thing for certain. They are not trying to make it crystal clear for the consumer.

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  • icherub1icherub1 Posts: 11

    @kyfdx said: The bank could put a realistic residual on the car, then give the whole $7500 as an incentive.. Or, they could contribute half the incentive, but pump up the residual by 10%... Usually, they are trying to hit a payment that they think will sell the car. Who knows the financial engineering behind their decisions, and what they are trying to accomplish, otherwise.

    One thing for certain. They are not trying to make it crystal clear for the consumer.

    That's for sure. I've been trying to compare the Fusion Energi and Volt, but they are difficult to compare because of the state and federal tax credits/rebates. The Volt is attractive because of the additional $4,500 in credits, yet the advertised lease deals are no better than the Fusion, leading me to believe that there are still issues there (like when dealers were inflating prices to cover the credit or improperly claiming credits for themselves). Even the Fusion leases want like $10,000 down before the federal credit and lease cash. I just don't know how to approach the negotiations now without getting screwed, and moving to leasing is only feasible if it really saves a lot of money.

    Every article on the topic advises that one should negotiate the price of the car (cap cost) first, but that is impossible to do accurately without knowing how the credits will be utilized, and even if a good deal is struck it can be undone with the residual. There is also the issue now in MA where the credit is actually a rebate and is referred to as being "point of sale" but must be applied for, leaving the question of whether it is assignable and thus falls within the "all rebates to dealer" language usually in bills of sale. Everything I've read about it basically tells the reader to trust the dealer.

  • alokpatelalokpatel Posts: 2

    @alokpatel said: Just wondering if i am getting a good deal !

    2014 Volt, Premium Pakage, Safety 1 & 2 - Neg price: 32,900

    No money down no fees no taxes all rolled into the monthly payment - only 1st month payment of 347.73 for 39 months with 10,000 m/year

    IS this worth pulling the trigger on ?

    Live in NY but deal is from NJ - sales tax is 8.25%

    What was the MSRP? Was this through Ally?

    I am not sure if this was through Ally or USBANK

    I this is a good deal for a Volt or do I have still have room to negotitate since the 2015 model will be hitting the floors in the next few months.

    Advise is greatly appreciated!

  • Kirstie_HKirstie_H Posts: 10,896

    Did you recently trade in a Toyota Prius for a different vehicle? A reporter is interested in talking to you about what went into your decision. If you can help, please contact pr@edmunds.com by no later than Wednesday, July 30, 2014.

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  • xkindxkind Posts: 12

    What would the residual be without the federal tax credit for 36mo, 10.5k? Also what APR or MF can I expect in WA state?

  • kyfdxkyfdx Posts: 29,368

    @xkind said: What would the residual be without the federal tax credit for 36mo, 10.5k? Also what APR or MF can I expect in WA state?

    2014 Chevy Volt, 36mo, 10K/yr: 1.00% APR and 61% residual. $2240 lease cash.

    Subtract 1% from residual if equipped with UHQ (Audio and NAV pkg).

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  • xkindxkind Posts: 12

    Thanks, @kyfdx

    I went into the Chevy dealer today in Kirkland WA and test drove a 2014 Volt. Great car.

    I asked for some figures for a 36mo, 10.5k/yr lease. They quoted me a MF of .0004 (which is the same as 0.96% APR), $2240 lease cash, and a $750 USAA rebate as well. They said the residual was 40%.

    I asked how the $7500 federal tax credit was applied to the loan. They said they work with 3 different banks. One (USBank, I believe) changes the residual to be 57% instead of 40%, another (Ally, I believe) hard-adds $7500 to residual. None apply the credit as cap cost adjustment.

    By my math, hard-adding $7500 to the residual works out to be a better deal that 57%, so I guess I should go with the bank that does that.

    He also said that all three banks want a down payment.

    Before I even mentioned price, he said their price is "$2000 below invoice." "You can check our website," he said, "just replace the $1000 rebate for a new car with $2240 for a leased car and then the numbers will be correct."

    So I checked the website, and sure enough the "internet price" was 31,599, which is $2000 below invoice (33,628), but it says the price "includes $1000 GM Rebate and $750 USAA Rebate", so that means it's really only $279 below invoice (31599 + 1000 + 750 = 33349.) Edmunds says the true market value in my area is 32763 before any rebates; Truecar says the average paid before rebates is 33248, so their price is still higher than both of those. Is it worth haggling?

    He said that he could only guarantee these figures until the end of the month. As far as my time-frame, this month is o.k., but really I'd rather start the lease in early September. Does it really make a difference? Is it at all risky to wait? Does my willingness to wait a month or two increase my bargaining power?

  • kyfdxkyfdx Posts: 29,368

    If you are leasing near the end of the model year, it's always risky. Because, at some point, leasing options will disappear on the 2014. Will it be next month? No idea, but it could be..

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  • xkindxkind Posts: 12
    edited August 10

    Thanks, @kfydx.

    I've looked at the differences between 2014 and 2015 Volts, and there is a perhaps a small, undocumented increase in range for 2015, and the (overpriced) option to use it as a wifi hotspot (who cares). Unless I'm missing something, the models are basically the same. If this is true, the most important factor for me is cost.

    Some of the lease guides I read say that the best time to lease a car is right when the model becomes available because that is when the residual is the highest.

    What is the chance that when the new residual values come out in September, leasing a 2015 will be cheaper than leasing a 2014 because of the higher residual?

    Another question--the lease guide I read said you never have to pay a down payment on a lease if you don't want. Why did the dealer say the banks required it?

  • MichaellMichaell ColoradoPosts: 5,860

    @xkind said: Thanks, kfydx.

    I've looked at the differences between 2014 and 2015 Volts, and there is a perhaps a small, undocumented increase in range for 2015, and the (overpriced) option to use it as a wifi hotspot (who cares). Unless I'm missing something, the models are basically the same. If this is true, the most important factor for me is cost.

    Some of the lease guides I read say that the best time to lease a car is right when the model becomes available because that is when the residual is the highest.

    What is the chance that when the new residual values come out in September, leasing a 2015 will be cheaper than leasing a 2014 because of the higher residual?

    It's possible, but nobody knows for sure until the numbers are released. The problem is that the selection of 2014's may be quite small by that time.

    Another question--the lease guide I read said you never have to pay a down payment on a lease if you don't want. Why did the dealer say the banks required it?

    We recommend against making a down payment on a lease - if the car is stolen or totaled, you are out that money.

    In order to qualify for lease specials, the finance company may require a customer 'contribution' to reduce the cap cost. You should be able to negotiate that out of the deal, so long as you understand that it will increase your payment - $28/mo for every $1000 on a 36 month lease.

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  • kyfdxkyfdx Posts: 29,368

    @xkind said: Thanks, kfydx.

    I've looked at the differences between 2014 and 2015 Volts, and there is a perhaps a small, undocumented increase in range for 2015, and the (overpriced) option to use it as a wifi hotspot (who cares). Unless I'm missing something, the models are basically the same. If this is true, the most important factor for me is cost.

    Some of the lease guides I read say that the best time to lease a car is right when the model becomes available because that is when the residual is the highest.

    What is the chance that when the new residual values come out in September, leasing a 2015 will be cheaper than leasing a 2014 because of the higher residual?

    Another question--the lease guide I read said you never have to pay a down payment on a lease if you don't want. Why did the dealer say the banks required it?

    Residuals might be higher on the new model... but, the money factors may be higher, as well.. Also, selling prices will most certainly be higher. That's the three-legged stool of leasing, and a good lease deal takes all factors into account (money factor, residual, selling price or discount).

    The best lease deals are on vehicles that are being incentivized to create low lease payments. Residuals may be highest when a car first hits the market, but that doesn't necessarily translate into low lease payments (it might, but not necessarily). I'd say the chances of the 2015 being cheaper to lease than the outgoing 2014 to be very small.

    I haven't heard of banks requiring downpayments from lessees with good credit, though banks do put a cap on the amount financed relative to the MSRP. If you are rolling over a lot of negative equity, or purchasing a lot of extras in the finance office, a downpayment may be required. Maybe they just require a downpayment to get to the monthly payment you desire?

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  • xkindxkind Posts: 12

    There is a discrepancy in the quotes I am getting for residual for a 36 month lease, 10.5k miles. @kyfdx , you say 61% (I assume that is Ally), but they told me 57%.

    Also, does anyone know the base residual for 10.5k/36 months for USBank before they hard-add $7,500? The dealer said 40%, but that may be low. Maybe he was remembering for 15k.

  • MichaellMichaell ColoradoPosts: 5,860

    @xkind said: There is a discrepancy in the quotes I am getting for residual for a 36 month lease, 10.5k miles. kyfdx , you say 61% (I assume that is Ally), but they told me 57%.

    Also, does anyone know the base residual for 10.5k/36 months for USBank before they hard-add $7,500? The dealer said 40%, but that may be low. Maybe he was remembering for 15k.

    The only GM numbers we have are from Ally, so we can't comment on the validity of the USBank figures.

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  • xkindxkind Posts: 12

    @kyfdx , @Michaell

    I got confirmation from a second dealership that for USBank, the residual base is 37%, then they add in the $7500. That works out to 61.43% , but they have a $395 disposition fee which Ally does not. So in this case, Ally will be a better deal by $275.

    The second dealership said Ally's residual base is 56% (so 59% with 10.5k miles). So I'm hearing 57%, 59% and 61%. It makes a big difference.

    I'm guessing your 61% figure is correct and I just need to convince the dealers of that somehow. Suggestions?

  • xkindxkind Posts: 12
    edited August 13

    Ok, I got a dealer to agree with the 61% and .0004 mf numbers for a 10k lease.

    He said for US Bank, it is also .0004 mf, but the $395 disposition fee means Ally is still cheaper by $231.

    I'm guessing residuals will drop again in September. At that point I will probably be better off leasing a 2015 (or buying).

  • xkindxkind Posts: 12
    edited August 19

    Ok I got a sort-of offer from a Chevy dealership and Ally. It was frustrating to have to fix all the mistakes they made and finally get the number down to something that matched my own math.

    Here are the details for a 36 month, 10,000 mile lease

    Disclosures

    MSRP: 34995 Gross Capitalized cost: 33295 Capitalized cost reduction: 2477.86 Residual: 21346.95 Base scheduled Payment: 286.17 Tax (9.8%) 27.95 Total Payments: 35 x 313.12

    Itemized Amount Due at Lease Signing:

    Cap Cost Reduction: 2477.86 First Monthly payment: 313.12 Title, Reg: 295.75 1 Days Select due date fee: 10.44 Total: 3340.00

    How the Amount Due at Signing will be paid: Rebates: 2990 (2240 lease cash, 750 usaa) Amount to be paid in cash: 350

    Itemized Gross Cap cost:

    Negotiated price: 32550 Acquisition Fee: 595 Doc Fee: 150

    Is it correct that rebates are treated as a cash down payment, like they did it?

    Now the part that still worries me is several of the people I dealt with that evening kept trying to get me to believe that Ally wouldn't deal with me because I'm a "first time buyer." It's true that I have never financed a car, but I have financed a house--still they say my credit is not "deep" enough for Ally to want to work with me. My credit score is 740, my wife's is 780. The first guy kept trying to get me to up the down payment to improve my chances. The next guy flat out told me Ally didn't want to work with me. The third guy thought he might be able to get Ally to work with me, but wanted to do the deal "my way" with the cash amount due of 350, and didn't care about upping the down payment. 3 different people saying 3 different things in the same company--it didn't sit right.

    Also they tried really hard to challenge the USAA rebate, insinuating that I need to not only be a member but to have USAA insurance. Has anyone else faced this?

    At this point, the wanted me to sign a contract with those numbers, but they couldn't assure me that either the USAA rebate or the Ally lease would work out.

    I didn't sign. I didn't take the car home. I'm afraid to take it home, that they will come back and say that my bank deal fell through and offer me some atrocious deal after I've already taken the car.

  • xkindxkind Posts: 12

    Update: USAA rebate went through and Ally went through with the 350 due at signing. We are going in again today.

  • xkindxkind Posts: 12
    edited August 20

    Signed a lease today. Wife's recent 800+ credit score did the trick to get us the deal we wanted with Ally and only 350 due at signing, despite never having financed a vehicle.

    It ended up slightly lower than what I said above. The title and registration dropped by $18, the sales tax by $11 and the $10 "1 Day select due date fee" was dropped.

    The end monthly payment was $311.86.

    These are my figures from http://www.free-online-calculator-use.com/automobile-lease-calculator.html

    Depreciation cost (262.31 x 36) = $9,443.05 Total lease fees (21.72 x 36) = $782.05 Total monthly sales tax (27.84 x 36) = $1,002.06 Total cost over 36 months = $11,227.16

  • kyfdxkyfdx Posts: 29,368

    Sounds like you did your homework and got a great deal. You were wise to wait on the rebate confirmation.

    Rebates are generally handled as described. That way, the state gets their tax.

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  • oleluckyolelucky Posts: 1

    Looking at this nationally advertised lease and wondering if that would be as good a deal as I should expect to get or is there better deals to be had.

    $269/month for 36 months.

    $2,679 due at signing (after all offers). Tax, title, license, dealer fees and optional equipment extra. Mileage charge of $0.25 /mile over 36,000 miles.

  • kyfdxkyfdx Posts: 29,368

    @olelucky said: Looking at this nationally advertised lease and wondering if that would be as good a deal as I should expect to get or is there better deals to be had.

    $269/month for 36 months.

    $2,679 due at signing (after all offers). Tax, title, license, dealer fees and optional equipment extra. Mileage charge of $0.25 /mile over 36,000 miles.

    The ad doesn't give a lot of details, other than it is for a $34,995 MSRP unit. Most advertised leases leave some room for a better deal, though.

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  • janulbugjanulbug Posts: 22

    What is the rv and mf on a 2014 volt w navigation 36mths 12k miles in Los Angeles, CA? Thanks.

  • kyfdxkyfdx Posts: 29,368

    @janulbug said: What is the rv and mf on a 2014 volt w navigation 36mths 12k miles in Los Angeles, CA? Thanks.

    1.00% APR and 59% residual. $2240 lease cash.

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  • anjozanjoz Posts: 3
    edited September 9

    All,

    So I'm about to go get the Volt! Here is what I'm getting. I'm in California BTW.

    2014 Red, Nav, Bose, Security 1, Heated Seats (No Leather). 37,665. Sale Price - 34,284 - 3750 (discount) = 30,534.

    Lease - 39 months/10K - 4K drive off - 254 + tax.

    Lease - 36 months/10K - 2K drive off - 299 + tax.

    They are calculating residual at 51%. I'm about to call them back for all the other numbers to plug in to an excel sheet.

    Do you guys think any of it is a good deal?

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