[LSJR]

Hello all,

I?m considering leasing the Volt as my next car.

I found a fully loaded 2017 with a sticker MSRP approximately $41K and add-ons bringing it to Dealer?s Asking approximately $43K. The offer was approximately $1,000 down, approximately $350/month including tax.
10,000 Miles Per Year

I have concerns about the space, as
I?ve got a toddler in a car seat. But everyone I know who has the Volt swears by it.

Any thoughts/advice would be greatly appreciated! Thanks!

 

[LSJR]

Is it crazy to ask for $300/month including tax?

 

[llninja]

I'd be wary of the dealer add ons (scotchgiarding, rustproofing, paint protection, etc). As for toddlers, they fit fine, but they have a way of growing. My 5'11" daughter hates sitting in the back of the volt.

My signature has my opinion on leasing

 

[DonC]

The difference between a "good" lease deal and a "bad" lease deal is the transaction price. When you lease you are paying for the depreciation, which is the difference between the residual, which is set by the lessor, and the negotiated price. To make is simple, the best way to get a good lease deal is to get a good price on the car.

In your case you're not getting a very big discount, especially given it's the end of a model year. I'd be trying to get $4K off, which works out to be about $100/month less ($4000/36=$111.11).

 

[LSJR]

The difference between a "good" lease deal and a "bad" lease deal is the transaction price. When you lease you are paying for the depreciation, which is the difference between the residual, which is set by the lessor, and the negotiated price. To make is simple, the best way to get a good lease deal is to get a good price on the car.


In your case you're not getting a very big discount, especially given it's the end of a model year. I'd be trying to get $4K off, which works out to be about $100/month less ($4000/36=$111.11).

Hi Don,

Thank you for the feedback. You really think it?s possible to get that fully loaded 2017 Premiere for less than what I was quoted? Less than $350/month including tax? If I could get it for $100 less per month, I?d do it tomorrow! ?

 

[LSJR]

I'd be wary of the dealer add ons (scotchgiarding, rustproofing, paint protection, etc). As for toddlers, they fit fine, but they have a way of growing. My 5'11" daughter hates sitting in the back of the volt.

My signature has my opinion on leasing

Your post made me laugh. He?s turning 5. I really hope he doesn?t hit 5? 11? in the next three years. ?

As for the add-ons, I totally agree. They said they weren?t charging me for them (the approximate $2K), in the deal they quoted me.

I couldn?t find your signature.

 

[DonC]

Thank you for the feedback. You really think it?s possible to get that fully loaded 2017 Premiere for less than what I was quoted? Less than $350/month including tax? If I could get it for $100 less per month, I?d do it tomorrow! ?

That particular one? Maybe not. But a similar one? Yes. Try this. Go to cars.com and search for for the trim level you want within a couple of hundred miles. Then sort by low price. At the least this should help in negotiations with whatever dealer you're talking to.

There are a couple of dealers who are sponsors which are known for their good price. Traveling and being somewhat flexible on things like exterior color can make a big difference.

Also remember you get a $1500 rebate from California.

 

[LSJR]

Thank you for the feedback. You really think it?s possible to get that fully loaded 2017 Premiere for less than what I was quoted? Less than $350/month including tax? If I could get it for $100 less per month, I?d do it tomorrow! ?

That particular one? Maybe not. But a similar one? Yes. Try this. Go to cars.com and search for for the trim level you want within a couple of hundred miles. Then sort by low price. At the least this should help in negotiations with whatever dealer you're talking to.

There are a couple of dealers who are sponsors which are known for their good price. Traveling and being somewhat flexible on things like exterior color can make a big difference.

Also remember you get a $1500 rebate from California.

Thanks so much, Don! Gonna do some research tomorrow.
Have a great night!

 

[llninja]

Your post made me laugh. He?s turning 5. I really hope he doesn?t hit 5? 11? in the next three years. ?

As for the add-ons, I totally agree. They said they weren?t charging me for them (the approximate $2K), in the deal they quoted me.

I couldn?t find your signature.

I've met some 8 year olds that are ready to be linebackers.

That's right, I forgot, newbs are restricted until they get to something like 10 posts. So here's my signature in full (sorry for non-new shoes, you are indeed seeing double

To give you some motivation on some of the best deals, I got my $44k 2013 new for $21k including all rebates, credits, and state sales tax. If you can wait, I predict similar steep discounts in fall 2018 when the tm3 is selling like gangbusters and the volt and bolt are both vying for your pocketbook. But if you cannot wait, at a mnimm widen your search for 150-250 miles and see what better deals you might find. Don't take the advertised price on a dealer's website as gospel, but contact the dealership to see what price breaks they might have. My volt was listed at $44k and I didn't know about the great 2014 $5k price drop or the state 10% rebate or the "we pay your sales tax" sale until I contacted the dealer. So shop around. Also, if you are certain you are getting an EV this year, and you think you quality for tax credit, stop your paycheck withholdings now, collect up and extra $7500, then turn the withholdings back on so you don't have to wait until April 2018 to see your money.

LL ninja (greenback troll #1)
2013 Volt G1 white diamond tricoat

If I can get the guy in the mirror under control I can be skinny and rich

If you don't have the money, don't buy it. Debt is hazardous to your wealth

what kind of mental problem do you have? you should really get yourself checked out, are you on any type of psychotropic medications?

R:IQ $2.2M, at $1.7M proj $4.8M
siad

 

[Edward Tyer]

Here is simple way to look at any lease...
What does it cost per year to ride?
In your case the cost is (350 x12) + 1000/3 = 4533 per year to ride! I assumed it was a 3 year lease!
And folks.....that's a very high price to ride!
There are better lease and or purchase options out there. Even people who buy cars and drive them into the ground have a cost per year to drive. I shoot for 2500 a year on any deal I make.

 

[llninja]

Here is simple way to look at any lease...
What does it cost per year to ride?
In your case the cost is (350 x12) + 1000/3 = 4533 per year to ride! I assumed it was a 3 year lease!
And folks.....that's a very high price to ride!
There are better lease and or purchase options out there. Even people who buy cars and drive them into the ground have a cost per year to drive. I shoot for 2500 a year on any deal I make.

With my suburban, it only costs me fuel, insurance, and registration (plus occasional repairs) but far, far less than $1000 per year (I don't drive it much). If you don't count fuel, it's about $300 per year.

 

[obermd]

You'll pay less in finance charges if you put the entire car on a credit card. I ran the numbers one time on a lease and calculated the effective interest rate to be somewhere between 40 and 50%.

 

[llninja]

You'll pay less in finance charges if you put the entire car on a credit card. I ran the numbers one time on a lease and calculated the effective interest rate to be somewhere between 40 and 50%.

That can't be right. I've seen numbers in the 14% range but not 40-50%. Even so, 14% interest is a nice cash cow for the finance companies. The trick is they don't have to disclose the money factor to you as it technically isn't a loan.

 

[LSJR]

You'll pay less in finance charges if you put the entire car on a credit card. I ran the numbers one time on a lease and calculated the effective interest rate to be somewhere between 40 and 50%.

How would that be possible? If you put the entire 3 year lease total on the CC at one time? Carrying a $12,000+ balance would seem to generate a lot in finance charges even IF the CC interest rate was low. Unless you were to pay off the total immediately, I guess. Hmmm...

 

[LSJR]

Your post made me laugh. He?s turning 5. I really hope he doesn?t hit 5? 11? in the next three years. ?

As for the add-ons, I totally agree. They said they weren?t charging me for them (the approximate $2K), in the deal they quoted me.

I couldn?t find your signature.

I've met some 8 year olds that are ready to be linebackers.

That's right, I forgot, newbs are restricted until they get to something like 10 posts. So here's my signature in full (sorry for non-new shoes, you are indeed seeing double

To give you some motivation on some of the best deals, I got my $44k 2013 new for $21k including all rebates, credits, and state sales tax. If you can wait, I predict similar steep discounts in fall 2018 when the tm3 is selling like gangbusters and the volt and bolt are both vying for your pocketbook. But if you cannot wait, at a mnimm widen your search for 150-250 miles and see what better deals you might find. Don't take the advertised price on a dealer's website as gospel, but contact the dealership to see what price breaks they might have. My volt was listed at $44k and I didn't know about the great 2014 $5k price drop or the state 10% rebate or the "we pay your sales tax" sale until I contacted the dealer. So shop around. Also, if you are certain you are getting an EV this year, and you think you quality for tax credit, stop your paycheck withholdings now, collect up and extra $7500, then turn the withholdings back on so you don't have to wait until April 2018 to see your money.

LL ninja (greenback troll #1)
2013 Volt G1 white diamond tricoat

If I can get the guy in the mirror under control I can be skinny and rich

If you don't have the money, don't buy it. Debt is hazardous to your wealth

what kind of mental problem do you have? you should really get yourself checked out, are you on any type of psychotropic medications?

R:IQ $2.2M, at $1.7M proj $4.8M
siad

Great info!

Unfortunately, can?t wait until Fall of 2018. Even tried to buy a friend?s TM3 reservation, but they won?t allow it.

The $7,500 tax rebate, I believe, will go to the Leasing Company and be partially applied to the balance of the Volt to make the monthly lower. So that option won?t help me. I *think* I?ll qualify for the $1,500 from CA, though.

I?ll ask the dealer about further discounts/sales/offers. On a $42,000 vehicle, I?d be surprised it they go much lower than the $350/month including tax. Maybe there will be some further discounts as the 2018s start arriving.

 

[DonC]

The $7,500 tax rebate, I believe, will go to the Leasing Company and be partially applied to the balance of the Volt to make the monthly lower. So that option won?t help me. I *think* I?ll qualify for the $1,500 from CA, though.

I?ll ask the dealer about further discounts/sales/offers. On a $42,000 vehicle, I?d be surprised it they go much lower than the $350/month including tax. Maybe there will be some further discounts as the 2018s start arriving.

That is how the credit works. Just don't miss the point that you get more of the credit than you'd expect over 3 years. Plus you get all the discount. Plus you get the CA rebate. Concentrating all these things over three years gives you a low monthly payment.

Don't ask about monthly payments. Once you do that you're toast. Talking about a monthly payment just lets the dealer do a lot of mumbo jumbo and sleight of hand. The residual and the interest rate are set by the lessor, and those are the other big levers (the residual being far more important in these days of low interest rates.

 

[DonC]

You'll pay less in finance charges if you put the entire car on a credit card. I ran the numbers one time on a lease and calculated the effective interest rate to be somewhere between 40 and 50%.

I would be very interested in seeing these numbers. Generally you don't have to do it. The APR and/or the money factor are given.

 

[llninja]

Great info!

Unfortunately, can?t wait until Fall of 2018. Even tried to buy a friend?s TM3 reservation, but they won?t allow it.

The $7,500 tax rebate, I believe, will go to the Leasing Company and be partially applied to the balance of the Volt to make the monthly lower. So that option won?t help me. I *think* I?ll qualify for the $1,500 from CA, though.

I?ll ask the dealer about further discounts/sales/offers. On a $42,000 vehicle, I?d be surprised it they go much lower than the $350/month including tax. Maybe there will be some further discounts as the 2018s start arriving.

Well if. You are intent on leasing and not buying, there's not much you can do other than be a Ferengi and negotiate down the initial price. Alas, in Cali there is such demand that the dealerships can sometimes command a high price and get it. For example if I tried to buy my volt from the largest dealership around, I would have paid near MSRP. I ended up buying mine from a dealership in a small town with about population about 6000. This was pickup country where they look at you funny when you say electric vehicle. The dealership had supply and no demand. That car was heavily optioned and was a hard sell for them with another dealership 20 miles away selling lots of base models for almost $9K less. So the planets aligned and I got the deal of teh decade. I don't think I'll ever repeat that deal, but you've got to do better than a few $K off MSRP.

 

[thetoad]

there's only one number you should be negotiating when it comes to a lease. the sale price. Especially with a volt (but for many other cars) the rest of the numbers will flow directly from there.

you want to make sure they dont stick you with added fees or raising the MF (interest rate), but everything else is basically predetermined and will run through a math formula to spit out your monthly fee.

If you negotiate the monthly fee instead, I'm sorry to say, you are the sucker that the dealerships live for.

for instance, I currently have a $0 a month lease for 36 months on my 17 Volt. (i.e. I did a one pay leaese and knew what I was doing). i.e. a dealer can hit any monthly fee you want if you put down enough money, but then you aren't paying attention to the main number that matters. the sale price of the car.

the going price in California is about $4K (give or take a little) below MSRP.

 

[LSJR]

there's only one number you should be negotiating when it comes to a lease. the sale price. Especially with a volt (but for many other cars) the rest of the numbers will flow directly from there.

you want to make sure they dont stick you with added fees or raising the MF (interest rate), but everything else is basically predetermined and will run through a math formula to spit out your monthly fee.

If you negotiate the monthly fee instead, I'm sorry to say, you are the sucker that the dealerships live for.

for instance, I currently have a $0 a month lease for 36 months on my 17 Volt. (i.e. I did a one pay leaese and knew what I was doing). i.e. a dealer can hit any monthly fee you want if you put down enough money, but then you aren't paying attention to the main number that matters. the sale price of the car.

the going price in California is about $4K (give or take a little) below MSRP.

Arrggggghhh, I?m kicking myself right now. So is it best to not even say you?re leasing when you are negotiating? I don?t even know what the MF or Residual is, at this time.
Are you able to tell what the numbers should be based on the numbers I listed at the top? Or is that not even a matter?