[wantavolt]

I live in Seattle in a condo, and currently drive a paid off 2009 Civic Ex-L. I was in the market for a Volt Premier with ACC, when I ran into an acquaintance who sells non-Chevy cars. He had nice things to say about the Volt, but suggested leasing rather than buying-- given the technology improving, battery prices dropping, etc. I generally only drive on weekends (including to Vancouver, BC, which is about 150 miles one way), and would no way put 10000 miles a year; but I tend to hang onto cars (I had a 14 year old Acura Integra that only had 50000 miles on it when I traded it in for the Civic) due to low mileage.

I am in no rush to buy, but would like to take advantage of the prices while gas is relatively cheap (and the onset of the Bolt) and generally like the idea of owning, as opposed to leasing. What do you guys say?

Thanks

 

[DonC]

I'm agnostic on the lease versus buy issue. I bought my last two cars, a Volt and an ELR, but I've leased as well. Just depends on the situation. The best time to lease is when there is an effort to clear out inventory. We seem to have arrived at a moment like that, so I'd say that, given your driving pattern, if you can find a discounted Premier with ACC, lease it. The discount comes right out of the lease payments so the monthly ends up being quite reasonable.

Note that if you lease you can always buy the car when the lease ends. It may cost another $500 or so over just buying it outright but that's not the end of the world.

 

[Whatstreet]

Financing is financing, whether you use an auto loan or lease there will be some kind of finance charge. Buying with cash is the least expensive because of those fees.

The lease is great for someone who needs to finance and desires to trade in their car as soon as they have paid off their loan. The depreciation is pre negotiated and everything is up front. As Don pointed out, you may be able to buy your car at the end of the lease. This was not the case for some people who bought Volts previously and this is something that should be understood before signing. The lease may provide a hedge on depreciation should the car depreciate faster than the residual and you might buy the car at market price at the end of the lease if you want it.

The cons of the lease is it is a contract, and it will cost you more money to get out of it should you decide you want to do that. The lease isn't for people who may get attached to their car, as ideally per the contract you have to return the car at the end of the lease. The lease gives you a way to drive a low mileage, hopefully reliable car but it also keeps you at the high end of the depreciation curve.

I have had cars that were still good and the new ones didn't have anything to offer that made me want to trade, so then I get a few years with low depreciation, which reduces the overall cost of ownership.

 

[AE7HF]

I leased.. I got the 2017 Volt Premier with ACC , tri color white. weather guard mat and skid guard, lit charger port. Basically every option. 41900 msrp.. just added the homelink mirror. I did no money down at .9% lease. I ended up putting 900 down to buy more miles, which also lowered the residual. $18K at the end of 39 months. Payment sucks. but the interest rate was so low, plus I write every mile off with my business at 57 cents a mile. I could have had 0% for 60 months, but the lease was a better option. for me

 

[Delta]

Just had to make this decision yesterday. I chose to buy since I had cash and didn't have to finance. Some of the dealer incentives were taken away with the lease option, they provided about 90% of the $7500 fed rebate in the lease though. To me, the only reason to consider it was a hedge against depreciation. They calculated the residual as 50% of the sticker price for a 3-year period so you're financing your negotiated deal minus the residual + fees/finance charges with an option to buy at the end at a price that's going to be higher than market value. I'm assuming market value in 3 years is probably about 50% of the negotiated price minus the $7500 fed tax credit and the $1500 CA rebate (maybe lower). So nobody leasing is actually going to purchase at the lease buyout price. You actually want the residual as high as possible so you're financing less. Are you going to buy a used car in 3 years or lease a new one? Probably most people that lease will just lease again to have that new car. Otherwise, why not buy a 3-year old vehicle now?

I had my current vehicle for 12 years I figure the best hedge against inflation is just to keep the car longer after purchase. Instead of 3 years, maybe I sell at 5 years. Those last 2 years are a lot less expensive with respect to depreciation than a new lease would be. If you have to have a new car every 3 years then maybe leasing is more attractive but since it's just a form of financing, it's going to be more expensive in the long run and also sets you up for having to pay for those first 3 quickly depreciating years over and over again. With buying, I also don't have to worry about mileage or early termination charges.

 

[Bacardi]

Most do not understand leasing; if anyone ever says all leases are bad you should probably ignore them...First and foremost, there's no way around it, the best Volt deal out there is buying an used one...Moving on to new, GM offers incredible lease deals on the Volt, the Volt has historically offered new features and increased range which lowers resale and demand...

This is the number one factor that people seem to not understand (I don't understand why this is so hard to comprehend), if a dealer will SELL you the car at a $4000 off discount, then they can LEASE you the car with the same $4000 discount...

GM leasing right now has an interest rate of .96% and will pay for the first month's payment...$0 down is the best way to lease and the MF and paid first payment make that even more favorable...

The main reason to lease (assuming there are favorable terms like there is with the Volt) you give yourself options...Get into an accident, even if it's not your fault, you don't take the depreciation hit, turn it back in at the lease end and get the latest and greatest...Also, the current lender is GMF, in the lease terms it states you can negotiate buy out...We don't know if they'll match the resale value for sure, but the two previous lenders, Ally and US Bank are reportedly knowing $7000 off at turn in to match the resale value...Everyone who takes this offer BEAT the system, their path to ownership was far cheaper to lease now buy later vs buy now...

A direct example my ex-lease MY17 (I sold it), MSRP for $36.265, for my lease I paid $1500 drive off and will pay $204.99 x 35 months, that's $7174.65 if we're including the $1500 I get back from Cali...I believe I got roughly $3,500 off the sales price...

Compared to buying I kept $32K in my bank account now which earns more than .96% anyways, I don't have to wait a year to file the $7500 tax credit (can't gain interest on that either) never have deprecation anxiety, no worrying if the MY18 Volt will get a 50 AER range boost, power memory seats, a sunroof, DCFC, supercruise and a $5K price haircut killing the MY16/17's resale value...At anytime I can buy the car or swap it out to someone if it no longer meets my needs...All I had to do was pay $204.99/mo...

 

[Barry]

I don’t know if you would consider buying a used Volt, but that is where the best values are right now, IMO. That is the best way to benefit from the high depreciation of this car. With the few miles that you drive, you would be a good candidate for one. Although it would probably be nearly impossible to find ACC in a used one yet.

 

[DonC]

I'm not a fan of buying a used Volt. Contrary to popular myth, after you account for credits and rebates the Volt has suffered less depreciation than average.

This is the number one factor that people seem to not understand (I don't understand why this is so hard to comprehend), if a dealer will SELL you the car at a $4000 off discount, then they can LEASE you the car with the same $4000 discount...

The main reason to lease (assuming there are favorable terms like there is with the Volt) you give yourself options...Get into an accident, even if it's not your fault, you don't take the depreciation hit, turn it back in at the lease end and get the latest and greatest...

+1 on the first point. However, I think you have MORE options if you buy. The downside of a lease is that you are on the clock, and at the end of the lease you have to do something. Often you might want to wait six or twelve months for a new release, but you may not be able to do that easily. Also note that if you're in an accident you're still liable for the lease. That's what GAP insurance is for. Works the same when you lease or buy.

 

[Barry]

The thing that always turns me off with a lease is the mileage limits. I drive easily over 15K per year. Maybe by several thousand miles. But who knows? It might change if my commute changes or I do more or less travel. Leases don't seem to be set up for that. Any way around that issue?

The OP has the opposite problem. Will pay for unused miles.

 

[Bacardi]

I'm not a fan of buying a used Volt. Contrary to popular myth, after you account for credits and rebates the Volt has suffered less depreciation than average.

+1 on the first point. However, I think you have MORE options if you buy. The downside of a lease is that you are on the clock, and at the end of the lease you have to do something. Often you might want to wait six or twelve months for a new release, but you may not be able to do that easily. Also note that if you're in an accident you're still liable for the lease. That's what GAP insurance is for. Works the same when you lease or buy.

You have a point with the timing, your lease ends say October 24th 2019, that's your turn in date if you don't plan on buying...You need to plan your next plan in advance and it's possible that GMF offers a pull ahead program...However with the accident, GAP does cover you for a total loss if you finance vs purchase outright, it does not cover deprecation or lack of demand...I say lack of demand because there are many picky people who would never buy an used car that's been in an accident...Worse with a car like the Volt that generally has had bad resale value, if you purchase outright and it gets totaled, you might be very disappointed by how little insurance gives you...

 

[wantavolt]

Thanks for everyone weighing in. As an update, my HOA at my condo has said I cannot plug into the electrical outlet in my spot (Liability, everyone will want to do it). Does this change anyone's suggestion from buy to lease? (Perhaps the board will change its mind, learn that electricity is not dangerous, etc).

 

[Jmaj]

The thing that always turns me off with a lease is the mileage limits. I drive easily over 15K per year. Maybe by several thousand miles. But who knows? It might change if my commute changes or I do more or less travel. Leases don't seem to be set up for that. Any way around that issue?

The OP has the opposite problem. Will pay for unused miles.

GMF will write leases up to 20K per year. As far as overestimating mileage, a deal's a deal AFAIK. Big issue to me would be going way past the 3/36 warranty which negates one of the reasons to lease - the vehicle is always covered bumper to bumper.

 

[Jubilee]

The thing that always turns me off with a lease is the mileage limits. I drive easily over 15K per year. Maybe by several thousand miles. But who knows? It might change if my commute changes or I do more or less travel. Leases don't seem to be set up for that. Any way around that issue?

The OP has the opposite problem. Will pay for unused miles.

For my 12k miles/year lease of an LT with a few options, I'm paying a total of approx $9K for the 3 year lease. That works out to be approx $0.25 per mile travelled. If I exceed 36K miles, each extra mile travelled will cost me $0.25. So... not really an issue for me.

If you're getting a fully loaded premier and your lease costs more than $9K for 36K miles, then you'll actually be lowering your average cost per mile if you exceed your mileage limit (assuming it is also $0.25 for every mile exceeded).

 

[Delta]

In that case, you're getting the wrong car. Don't get a plug-in hybrid that you can't plug in. You might as well get the Chevy Cruze since it gets 40Mpg and has the equivalent body style/interior.

Thanks for everyone weighing in. As an update, my HOA at my condo has said I cannot plug into the electrical outlet in my spot (Liability, everyone will want to do it). Does this change anyone's suggestion from buy to lease? (Perhaps the board will change its mind, learn that electricity is not dangerous, etc).