GM Volt Forum banner

1 - 17 of 17 Posts

·
Registered
Joined
·
331 Posts
Discussion Starter #1
So my lease is coming up in January and I've been waiting for the $35K Model 3. It's not here yet so my plan of swapping it with my Volt won't work.... yet


Has anyone ever extended their Volt lease?


I read a few articles about 6-12 month lease extensions in general


I'm going to give GM financial a call about it but wanted to hear anyone else's experience with extending theirs
 

·
Registered
Joined
·
3,350 Posts
Buy it out. Leasing is possibly the worst financial decision you can make outside carrying credit card balance. Consider that on a Lease you have zero equity to use when you finally get the Tesla.
 

·
Registered
Joined
·
17 Posts
Buy it out. Leasing is possibly the worst financial decision you can make outside carrying credit card balance. Consider that on a Lease you have zero equity to use when you finally get the Tesla.
This is absolutely not true, at least the worst financial decision part. Very old school way of thinking, especially with an EV/PHEV. It's like a smartphone and the technology changes very quickly. Terrible resale value! It does hurt the residual value when leasing but totally disagree with that statement. Yes, It's probably bad to lease if you plan on keeping it for 7 years or more but you can't make a blanket statement it's the worst financial decision as everybody has different financial goals etc. Cash flow is important too. People also like to have a newer more reliable vehicle that they don't have to maintain and spend their valuable time at the shop, etc. I can go on and on but won't. Some people it may be a bad deal and some not. Same thing if you bought it so my point is your blanket assumption isn't really correct.

Sent from my SM-G965U using Tapatalk
 

·
Registered
Joined
·
3,350 Posts
This is absolutely not true, at least the worst financial decision part. Very old school way of thinking, especially with an EV/PHEV. It's like a smartphone and the technology changes very quickly. Terrible resale value! It does hurt the residual value when leasing but totally disagree with that statement. Yes, It's probably bad to lease if you plan on keeping it for 7 years or more but you can't make a blanket statement it's the worst financial decision as everybody has different financial goals etc. Cash flow is important too. People also like to have a newer more reliable vehicle that they don't have to maintain and spend their valuable time at the shop, etc. I can go on and on but won't. Some people it may be a bad deal and some not. Same thing if you bought it so my point is your blanket assumption isn't really correct.

Sent from my SM-G965U using Tapatalk
Calculate the simple interest on a lease. It's cheaper to put the car on a Credit Card. I've run these numbers and came up with something on the high side of 30% APR on a typical car lease.
 

·
Registered
Joined
·
444 Posts
Calculate the simple interest on a lease. It's cheaper to put the car on a Credit Card. I've run these numbers and came up with something on the high side of 30% APR on a typical car lease.
Not true at all, especially for EVs/PHEVs in areas where the incentives favor a lease. In CA lots of people were getting leases for roughly $100/mo with a few thousand down. I think the one time payments were around $6k, which is a crazy low amount to drive a new car ~$35k+ MSRP car for 36 months.

Now you can argue that leasing doesn't make sense for everybody, but blanket statements about it "not being financially smart" are simply not true due to all the variables.
 

·
Registered
Joined
·
3,350 Posts
Not true at all, especially for EVs/PHEVs in areas where the incentives favor a lease. In CA lots of people were getting leases for roughly $100/mo with a few thousand down. I think the one time payments were around $6k, which is a crazy low amount to drive a new car ~$35k+ MSRP car for 36 months.

Now you can argue that leasing doesn't make sense for everybody, but blanket statements about it "not being financially smart" are simply not true due to all the variables.
And what was the residual on the lease?
 

·
Registered
Joined
·
17 Posts
Calculate the simple interest on a lease. It's cheaper to put the car on a Credit Card. I've run these numbers and came up with something on the high side of 30% APR on a typical car lease.
A dealership won't let you put much more than $5,000 dollars on a credit card anyway so you can't use this example. So even if you get 0% interest for 15 months that's $333 per month on the card. If you don't pay that off in time the rate will go exceedingly higher. Say the car is 30k you've paid that over 15 months because you had 25k cash to pay the balance. If you lease it for 36 months assuming a residual of say 50% and a reasonable money factor maybe your monthly payment payment is $365 per month (don't have time to calculate exact amount). So over 3 years you paid $13k vs $30k in 15 months. Yes you can tell everyone you don't have a car payment but I can invest the 17k and make money or hell, just put it in a saving account or use it for other life expenses instead of a depreciating car. Of course if you are extremely wealthy and you have cash laying around or a nice bonus check then it doesn't matter. Most people don't have that luxury so leasing may make sense. It's not a cut and dry argument either way. Some people it will make sense, some people it won't

Sent from my SM-G965U using Tapatalk
 

·
Registered
Joined
·
17 Posts
So my lease is coming up in January and I've been waiting for the $35K Model 3. It's not here yet so my plan of swapping it with my Volt won't work.... yet


Has anyone ever extended their Volt lease?


I read a few articles about 6-12 month lease extensions in general


I'm going to give GM financial a call about it but wanted to hear anyone else's experience with extending theirs
I've never extended my lease but I'm sure they would be happy to take your money a bit longer. Your payment would probably be the same and they may want you to agree to a certain time frame. Maybe someone who's actually done it can chime in but let us know what you find out! Good luck!

Sent from my SM-G965U using Tapatalk
 

·
Registered
Joined
·
31 Posts
Buy it out. Leasing is possibly the worst financial decision you can make outside carrying credit card balance. Consider that on a Lease you have zero equity to use when you finally get the Tesla.
Really disagree with this. I leased my volt for 3 yrs it cost me 3600. How many cars that you buy cost you less than $100 a month?
 

·
Registered
Joined
·
31 Posts
And what was the residual on the lease?
Why does the residual matter, if your turning it in and lease another something at around $100 a month?

Whats the monthly payment on a 5yr car purchase $300 - $400 -- so lets say 2 to 3 times the lease payment. How much value is left in your car after 15 yrs. Plus all the maintenance cost you have had to do?
 

·
Registered
Joined
·
1,319 Posts
Buy it out. Leasing is possibly the worst financial decision you can make outside carrying credit card balance. Consider that on a Lease you have zero equity to use when you finally get the Tesla.
Wrong. Just wrong. Nobody leases because they want equity; they lease to save money and to avoid worrying about severe depreciation on new, unproven automotive technology.

Really disagree with this. I leased my volt for 3 yrs it cost me 3600. How many cars that you buy cost you less than $100 a month?
Same here. Leasing my Volt was one of the best decisions I made. No worrying about trade-in value (or how much I could sell it to a 3rd party for) if wanted a new car; it had a warranty for the entire time I drove it; the cost was far less than I would have paid had I purchased it; and I got an even better loyalty deal on my next Volt when my first lease was up!
 

·
Registered
Joined
·
444 Posts
And what was the residual on the lease?
What does that matter? That's just a number the mfg can use to tweak the numbers to suit the math however they want it. Sometimes the residual is realistic, sometimes it's pessimistic if the mfg doesn't want to accept any risk, and sometimes it's heavily subsidized by the mfg (early Volts definitely fell into this category to get the lease numbers up in CARB states).
 

·
Registered
Joined
·
20 Posts
I do not recommend extending a lease.
Rather buy it out with financing terms that are favorable to you.

Once lease extension is up you are still in same spot as now-- either buy out residual or give back car.
Either way the lease was the most expensive way to go long term.

You can tell this was a not a good financial decision by how easy it was to execute.
GM was thrilled. The lower monthly payments are misleading. The months will never end.
 

·
Registered
Joined
·
236 Posts
Calculate the simple interest on a lease. It's cheaper to put the car on a Credit Card. I've run these numbers and came up with something on the high side of 30% APR on a typical car lease.
I believe you've quoted these numbers before. If you're computing the math correctly and have an implied interest rate of 30%, you must be working with Don Corleone. Rather than rebut your obviously wrong conclusion again (as I did a couple of months ago), I'll also point out that you save any sales tax you might otherwise have to pay on the residual. In CT, that's a big number.
 
1 - 17 of 17 Posts
Top