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2014 and Earlier Chevrolet Traverse Lease Questions



  • Hi zoller. I am not familiar with the specific rear-view camera system that is used in the Traverse, but every vehicle that I have seen that has a rear-view camera sends the video to a screen in the dashboard, not the mirror.

    As far as the deal that you were offered goes, the selling prices of leased vehicles are negotiable...just as if you were paying cash for or financing them. The best way to tell if you are getting a good deal is to look at the selling price of the vehicle that you want in relation to its MSRP. The larger the discount you negotiate, the better. Let us know what the selling price and MSRP are for this Traverse and I'm sure that either myself or another knowledgeable community member will gladly tell you what they think.

    Prices Paid: Buying & Leasing Experiences Forum
  • Can someone help me with the Residual # and the APR or money factor for 2011 Traverse 1LT, 36 month lease, 12kmiles a year. Chevy dealer mentioned that the lease rate changed as of yesterday. Also I heard that GM will be introducing new incentives September 8th. I would appreciate if someone has any incites into potenital traverse rebates etc.

    Thank you,

  • If the Traverse is equipped with a Navigation system, the back up camera will visualize on that screen. If it is not equipped, it will visualize in the inside rear view mirror.
  • Cool info, tbone. Thanks for sharing.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Al. General Motors' August lease program is scheduled to run through today, September 8th. It will introduce its new September program some time tomorrow. I can provide you with the details of the current program now, but you'll have to check back with me for the new one.

    Through September 8th, Ally's base lease rate and residual value for a 36 month lease of a 2011 Traverse 1LT AWD with 12,000 miles per year are 2.15% and 51%, respectively.

    When negotiating your lease on this truck, make sure to take advantage of the $1,300 cash incentive that is currently available on leases of it through Ally.

    Prices Paid: Buying & Leasing Experiences Forum
  • Why do people lease automobiles??? Is it because they can't get a loan, or what??? I really don't see any benefit to it. You make payments just like you're paying a bank, but then at the end you have nothing except the option to purchase at some ridiculous number.

    Isn't that how it goes ... or am I missing something???
  • I think it's because people want to drive a new car every 2 years. I am trying to purchase a Traverse but GM's incentives suck. I have read they will only get worse. Apparently after they paid back their bailout funds, and sold IPOs. They think they don't need to sell any more cars.

    GM I can wait, can you? Or is it you want another bail out? GM sales down 25% in August...hmmmmmm. And $2000 off, really please.
  • colt_herocolt_hero Posts: 104
    edited September 2010
    The rebates aren't really there to help you buy a vehicle. They are what they are based on inventories. There must be a TON of Impalas out there right now on dealer lots because the rebate is at an all-time high of $4000 (never seen an Impala rebate that high)!! In 2008, the Equinoxes must've been piling up because the rebate went to $4250 on those !! These are pretty nice rebates for what are fairly moderately-priced vehicles (~$23,000 on the MSRP for a well-equipped unit). But they're based on inventories.

    So a $2000 rebate on a 2010 Traverse (~$33,500 for a decently-equippped LT1) tells me there aren't a lot of them left out there. Another indicator is the $1500 rebate currently being offered on the 2011 Traverse! So a dealer has a leftover 2010 sitting beside a brand new 2011. The rebate difference is only $500. The 2010 can be had for much less than the $500 difference, but the buyer has to be able to negotiate that savings - maybe not easy since this depends on the time of month, time of year, size of dealer, philosophy of the dealership, rapport with the salesperson, etc. For most people, they'll just buy the 2011 and be done with it - which might be better for them anyway since the vehicle really IS new, has never been driven by anyone, and has not been sitting around for potentially several months time.

    Getting back to leasing - I still say it's dumb. To me, it was just another dealer racket started 25 years ago to help get people into cars they really couldn't afford. Somehow it has managed to live on to this day (most likely through crooked sales techniques, preying on lesser-informed and/or fearful people).
  • colt,

    "Getting back to leasing - I still say it's dumb. To me, it was just another dealer racket started 25 years ago to help get people into cars they really couldn't afford. Somehow it has managed to live on to this day (most likely through crooked sales techniques, preying on lesser-informed and/or fearful people)."

    Leasing is dumb? Crooked sales techniques? Preying on the less informed? You're a walking billboard for someone that doesn't understand the principles of leasing or how to perform an incremental cost analysis of the lease v. buy decision. Those that do understand these principles, aren't going to get scammed. It's all about mathematics.

  • colt_herocolt_hero Posts: 104
    edited September 2010
    OK, let's hear your "incremental cost analysis" that justifies leasing. Surely you could give at least ONE hypothetical scenario???? And don't start with, "... a buyer has a terminal illness ...".

    Are there leasing arrangements that COULD make sense for certain individuals? Probably. Like you said - "It's all about mathematics". There's always one in a million, I guess ...
  • delta737hdelta737h Posts: 606
    edited September 2010

    Leasing isn't for everyone. Whether one leases or buys depends upon individual preferences, usage, holding period, and investment opportunities.There are leasing arrangements that make leasing the better alternative than purchasing for many people and the odds are, in fact, much better than one in a million.

    As I've already indicated, the decision to buy or lease involves selecting a holding period (sometimes called a planning period) which is the length of time one plans to hold the asset and may differ for a lease than for a purchase. In such instances, time-valued adjustments should be made. Next, one chooses the methodology to be used which is usually an incremental cost approach or a net present value approach. There are other approaches that can be used but the two mentioned are the most prevalent. They're also very valid. Of course, any good study will capture the depreciation time-line profile associated with the vehicle under study.

    In the interests of simplicity, we'll assume identical holding periods in which case, the buy payment streams exceed the lease payment streams triggered by residualized financing. Adjusting for any differences in upfront transaction costs, we can state the following...

    If the future value (benefit derived) of the increment between the buy payment streams and the lease payment streams (i.e., cash flows) exceeds the net terminal value of the vehicle at the end of the holding period, then the financials tell us that it's best to lease. The benefit that the individual derives can be quantified in a variety of ways (investment opportunities, purchase of durable goods, etc). And so, there is a quantifiable benefit associated with leasing that exceeds that of purchasing in some instances. By the way, the net terminal value of the vehicle captures all future benefits associated with the remaining life of the vehicle as well.

    Consider the following hypothetical (realistic albeit simple) example applicable to a 36 month holding period. All upfront costs are assumed to be amortized over the 36 month holding period and termination costs (e.g., wear/tear) are reflected in the market value...

    Month... Lease Payment.... Buy Payment... Increment
    1... -235... -490... 255
    2... -235... -490... 255
    3... -235... -490... 255
    36... -235... -490... 255

    Buyout... -9,500... 0... -9,500
    Market Value... 9,500... 9,500... 0

    As you know, one advantage of leasing is that you're under no obligation to purchase the vehicle at lease end. If your buyout price exceeds market value at termination, simply return the vehicle and walk away.

    In this example, the lessee realizes a monthly savings of $255 but would owe $9,500 should they elect to exercise their buy option. The lease, in this example, makes sense IF...

    (A) The market value is at least 9,500 and
    (B) The value derived from having an additional $255 each month exceeds the
    equivalent of $9,500 after 36 months

    The incremental cash flows tell us that the IRR (Internal Rate of Return) is about 2.20%. And so, if your investment opportunity rate exceeds an after tax equivalent of 2.20% per annum, then the $255 monthly savings will exceed the net terminal value of $9,500 after 36 months which, of course, will exceed the value of the asset.

    Hope this helps.

  • delta,

    I appreciate your effort in trying to put a positive spin on leasing, but my advice to everyone out there is to avoid it like the plague. Maybe if you can write off a portion of the lease on your taxes, or if you're a good negotiator who can hammer out a fair deal, leasing might be an option for you. But for everyone else: STAY AWAY. The dealer will just end up stealing your money. You'll be making a monthly payment large enough to buy the vehicle outright, but you'll have nothing to show for it at the end. For you, it's just another dealer racket.
  • Car Man... I come to this site to hear from you. The latest strings (specifically on this page) debating the pros and cons of leasing I find useless. What we do with our money is our business. Now to the car...

    I have given up on the GMC Acadia and now am looking at the Traverse. Can I please get some numbers on the following...

    FWD 2011 Traverse 36/39 month Lease 15K miles: residual and interest rate. What difference does the trim make on the above numbers? For the purpose of this quote, I guess I am partial to the LTZ with entertainment. However, if you have the time and the numbers on the LT1 and LT2 are readily available, it would help. Much appreciated! I am in Northern CA if it matters.
  • Spoken like a real mouth-breather. Hmmm...let's see, reasons to lease??? How about saving a couple hundred dollars a month for two or three years. Is that a good reason? I leased a 2010 Ford Edge, MSRP $35,690 for 27 months, ZERO DOWN, and my payment including 7% sales tax is $297.81. If I would have bought it, even on a 72 month loan, my payment would have been $200 more. So take $200 and multiply that by 27 months. That's $5400 I saved by leasing. Who cares if I don't own the vehicle at lease end. Do you really think you would ever be ahead even $2000 after 3 years on a traditional loan? No way. Dealers don't want your used car. You are lucky to even get Kelly Blue Book trade-in anymore.
  • I don't know ... I guess it's just how people value different things. My motto is "buy new and hold for 10 years or 200,000 miles ... whichever comes LAST". I pay cash for my vehicles and do all the service work myself. My typical gross cost per year (purchase price divided by years of service, not counting routine service) has been $450 (my very first car - Japanese economy car), $1300 (and falling for my Taurus), and $1625 (and falling for my Impala). Next purchase projects to have about a $2000 CPR as I will be paying about $25,000 after rebates and discounts off a $34,000 MSRP.

    You're paying $4000 per year - AND you've got nothing to show for it after only two years! To me, that's a car cost that I just couldn't tolerate.

    But everybody has their reasons for doing what they do. If you know what you're doing and you accept these kinds of costs (and you can afford them), that's fine. But you KNOW there are elderly (and other easily-manipulated) people out there getting reemed on these lease deals - and THAT's what bothers me the most about them. It's just another dealer racket for a lot of would-be buyers...
  • I am wondering why you're even here if you are the "buy new and hold for 10+ years..." type of person....Anyway, leasing will ALWAYS cost you more in the long run than if you were to buy (if you don't have a means to write-off your lease) because you are switching cars every 3 years or so and you have to pay all the up front fees every few years plus the bulk of depreciation. But you also never fall out of warranty and you get to enjoy the latest improvements manufacturers have to offer. If you opt for cars with free maintenance, even better. There are some intangibles with leasing so I wouldn't be so quite to write it off. Besides, not everyone can or has the time to service their own vehicle, so those savings don't mean much to most people.
    Now lets clarify something of your misconceptions about CAN buy the car at lease end, so this whole "you have nothing to show for after two years" dribble just doesn't cut it. Second, if you were to buy a car and sell it two years later, the same result will ensue. There isn't a very significant difference between the two approaches if you think about it. People tend to knock leasing when they don't understand it. They also tend to over-simply the entire concept by just calling it "renting". That couldn't be further from the truth.
    Lastly, there are some people out there that like to prey on the elderly. Leasing just happens to be the tool of choice for these people, but you can do so with standard financing too. Any time you negotiate monthly and down payments you run a risk of getting fleeced. Sales people do what they do to make money. Its not a charity, its a business. They will sell you what they can to make money because they got needs too. Some just have less moral issues about screw people, thats all. Like many things in life, leasing is just a tool. How you use it is what makes all the difference.
  • If I am paying "$4,000 the first year" then you are paying $25,450 the first year. Who's smarter? You just out-debated yourself.
  • I fell into this sub-forum while reading posts on the Traverse in the other sub-forums. I was just curious what people were paying every month on a Traverse lease, that's all.

    Should've stayed away...
  • I was referring to a overall "cost per year", not "cost the first year". It's an after-the-smoke-clears assessment. Yeah, I MAY be paying $25000 up-front, but when the smoke clears, my cost per year will be $2000 (or less). And my guess is that people who lease almost never buy the car they're leasing because the dealer is very good at rolling the buyer into another lease every time. So it's a $4000 cost per year - year in and year out. By my metrics, I'd have to be driving a $50,000 vehicle to justify that.
  • Car_man,

    I was wondering if you had the October lease rates and CCR for a 2011 Traverse LT1 and LTZ AWD for 24/27 months and 36/39 months with 15k miles per year.

  • Thanks msjhsap. Here's the information that you're looking for.

    Ally's current base lease rate ad residual value for a 36 month lease of a 2011 Chevrolet Traverse LTZ 2WD with 15,000 miles per year are 2.15% and 48%, respectively.

    The numbers for the LT1 and LT2 FWD are exactly the same.

    When negotiating your deal on this truck, make sure to take advantage of the $1,300 cash incentive that is available on leases of it through Ally.

    Prices Paid: Buying & Leasing Experiences Forum
  • Here's the information that you're looking for, autoboy19.

    Ally's October buy rate lease money factor and residual value for a 24 month lease of a 2011 Chevrolet Traverse LT1 AWD with 15,000 miles per year are 0.4% and 61%, respectively.

    The numbers for an otherwise identical 36 month lease are 2.15% and 50%.

    This vehicle's 39 month numbers are 2.15% and 48%.

    When negotiating your lease, make sure to take advantage of the lease cash that I mentioned in my previous post.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Car Man,

    Do you have Ally and US Bank lease rates for a 2011 Traverse LS (FWD/AWD) and 1LT (FWD/AWD) for 12,000 miles 36 and 39 months?

    Also, is Ally's incentive still $1300 and does US Bank provide any incentives?
  • Hi thejman2008. Ally's current base lease rate and residual value for a 36 month lease of a 2011 Chevrolet Traverse LS FWD with 12,000 miles per year are 2.15% and 52%, respectively.

    The lease rate for the LS AWD is the same, but its residual value is 2% higher.

    The lease rates for the 1LT FWD and AWD models are the same as well, but their 36 month residuals are 50 and 52%.

    The lease rates for 39 month leases are the same also, but Ally's 39 month resids are 2% lower than its 36 month resids.

    US Bank's current base lease rate for the '11 Traverse is 1.08%.

    General Motors is currently providing a $1,300 cash incentive on leases of this truck through Ally and $1,000 on leases of it through US Bank.

    Prices Paid: Buying & Leasing Experiences Forum
  • djalbedjalbe Posts: 3
    Hi Car Man,

    Here's a twist on this Traverse lease. I'd like to do a business lease, with or without myself as the guarantor. Looking for 36/39mo, 15k/yr, on a 2011 (or 2010 if it still makes sense) LT1 AWD or LT2 AWD. Can you tell me what the program details are for such a buz lease and which bank is better suited for it ?

  • Hi djalbe. I don't think that there would be any difference in this vehicle's lease program for a business versus a personal lease.

    General Motors is scheduled to introduce its new November programs some time later today. Please feel free to post a reminder for me in this discussion and I will gladly fill you in on the details of the new program when I have them.

    Prices Paid: Buying & Leasing Experiences Forum
  • I am considering a 2011 Traverse 2LT with typical options (Leather, Nav-Entertainment, Blue Tooth, and sunroof)

    MF=0.0004 (about 0.5%) woo hoo!
    Residual= 50% $22,048

    The only question that remains is the price of the car. There is a $2500 cash allowance that seems to apply to leasing but I can not tell for sure. It says that you can not use in combination with 0%/60mo financing but does not specifically say anything about leasing.

    One dealer has told me that there is a $1200 cash allowance that they can use toward a lease.

    Another told me that there is a $1600 cash allowance that they can use toward a lease.

    How do I find out definitively what the official chevy cash is on a lease?


  • Car_man,

    Do you have the curnet lease rates for the Traverse LT1 and LTZ AWD for 24 and 27 months?
  • Car_man,

    Could you also please provide the lease rates for the Traverse LS AWD for 36 and/or 48 months, 12k miles per year?

    Many thanks,

  • Hi BobG. In a way, both dealers were right. GM is currently providing a $1,200 cash incentive on leases of the Traverse through US Bank and $1,600 on leases of it through Ally.

    The $2,000 customer cash incentive that is available on this truck is not available on leases.

    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.