GM Volt Forum banner

1 - 13 of 13 Posts

·
Registered
Joined
·
11 Posts
Discussion Starter #1
Went to two dealers in the Chicago 'burbs on Monday. Neither had ever heard of pricing the Federal tax credit or the IL tax rebate (10% of purchase price, straight up cash) into a lease.

Here's the math I got at both places:
On a $35k car
8.25% tax due on full $35k (IL lease tax laws stink!!)
$4k down
4% money factor
39 months

= $423/mo

Playing with lease calculators, the residual value is exactly 60% of $35k.

In other words, the Federal and IL money isn't factored ANYWHERE into these lease terms.

Both dealerships use Ally Bank for their leases. I called Ally (888-925-ALLY) and they transferred me to their commercial lending people--supposedly the folks that work directly with dealerships. They had never heard of the tax credits being priced into the Volt lease terms either. They actually said I'd have to talk to my local DMV or my accountant! So wrong.

If the Internet didn't exist, I'd think I was the crazy one!

There's $11k in free money floating out there ($7500 Fed, $3500 IL) that will go to the lessor (e.g. Ally Bank) and everyone's playing dumb or is unforgivably ignorant. There's a chance that the credits are applied against the residual (i.e. the $11k reduces the lease end buy-out cost but does not affect the lease payments), but you'd think at least the Ally people could confirm this.

I don't see that many Volts on the street out here in the 'burbs. Maybe a dealer in Chicago will have more experience with leasing them.


So has anyone had any luck leasing a Volt in IL recently?

I really love the car, but I won't sign a lease until I know where those tax credits are going!
 

·
Registered
Joined
·
1,206 Posts
60% residual after 39 months explains where the rebate is. The residual is inflated by at least 10 to 12% points of what it should realistically be which is 48 to 50%. The high residual is lowering your payments to reflect part of the rebate.

If you were to buy it at lease end though you would be screwed on the rebates.

In this scenario, you are leasing with the expectation to walk away. The car then goes to auction where it will get fair market value which will be about were the residual was minus the rebates that would have been paid on the car to Ally.
 

·
Registered
Joined
·
3,424 Posts
The residual for a standard lease would be about 46% or 16126 for a 3 year lease. The difference Ally quotes of 60% and 48% is what the are giving back or about 4200, Ally also has a Cap cost reduction of bout 2200 so combined $6400

The State rebate Ally does not receive as they are not a resident of IL

Your personal high lease quote is due to no discount from MSRP and a stupid high money factor of 4%, should be 1.9%
 

·
Registered
Joined
·
3,454 Posts
question:
how can you tell when a car salesperson is lying?
answer: their lips are moving.....

but we accept this behavior all the time.... so who is to blame?

I suggest that you go first to a local credit union or local intown leasing agency and start the conversation with them about their being the lessor for your upcoming car purchase, without being model specific. then later in the conversation, after there are numbers on paper, bring up the tax credits.
 

·
Premium Member
Joined
·
14,156 Posts
Yes the credit is in the residual. I doubt the sales people are lying. Most likely uninformed.
 

·
Registered
Joined
·
169 Posts
Offer canceled. Keeping the 2013 after seeing the 2016 Gen 2..... :)
 

·
Registered
Joined
·
11 Posts
Discussion Starter #7
Thanks for the info, everyone! I think it's more ignorance on the dealers' parts than slimy-ness.


So I think I get it now.

The Chevy.com website was just promoting a $266/mo Volt lease (just ended yesterday). Check my math:

Their example lease was $266/mo, 36mo, $35k base with, I think, $2k down. Assume a favorable 2% money rate. Obviously didn't include taxes and whatnot.

Pretty sure their residual was 60%. Using a lease calculator, the only way I can get to their $266/mo is by adding a $3500 lease incentive. Reasonable for a holiday lease promotion?

Now add in IL's high taxes (8.25% on the full $35k) and it jumps up to $345/mo.

Increase the money factor to 4% and we're at $390/mo.


So if that all checks out, then at least I have a good idea of what range I can expect to work in for final lease numbers.
 

·
Registered
Joined
·
3,424 Posts
The national deal is a joke, that's 3-4K more than what you can get just about anywhere as the national lease is at MSRP. Also, money factor is where they LOVE to jack it up as they get the difference between the lessor ( Ally ) 1.9% and your quoted 4% (that's 50 bucks right there a month ).

Treat a lease as your buying, when your happy on the price THEN use that as the capital cost for the lease, NOT MSRP
 

·
Registered
Joined
·
3,454 Posts
My ..., I would let this car go to anyone able to get an Ally credit OK/transfer and $595 fee to take over the lease. Illinois residents should be able to take it with sales tax paid at end of lease if so desired. Without the $4,000 original investment I guess I think this is a pretty fair offering. It would allow one to get Volt experience while they wait to see what is coming down the road in Electrics.

The car is immaculate and has several dealer options added. Love the Volt, but going to travel more and can't take two cars with behind the motor home. The Volt has never been in the snow. It was in Texas last Winter.... :)

2013 Red Safety 1 with heated seats, backup cam, door sill plates, short air dam, premium cloth seats. April 2013 MSRP = $41,340 before discounts and sales tax.

No problems with the car what so ever to date. Car is located in Illinois Quad-Cities.
Hi Volt Gambler, I suggest that you start a new thread with this car for sale. Good luck with selling it- it sounds like a great deal- I did once see a large RV towing a large pickup which had a "smart-for-2" on the pickup bed.... I'm not sure you could do this with a Volt, but it's an interesting idea for the RV'ing couple who wants 2 cars when they get to where they are dropping anchor....
 

·
Registered
Joined
·
11 Posts
Discussion Starter #10
The national deal is a joke, that's 3-4K more than what you can get just about anywhere as the national lease is at MSRP. Also, money factor is where they LOVE to jack it up as they get the difference between the lessor ( Ally ) 1.9% and your quoted 4% (that's 50 bucks right there a month ).

Treat a lease as your buying, when your happy on the price THEN use that as the capital cost for the lease, NOT MSRP
Absolutely. I'm looking at a fully loaded 2015 Volt (MSRP ~$39k) priced down to $35,800 or so. So even though the national lease offer is based off the MSRP of a base model, the math ends up being similar enough for my purposes.

Now I just need to figure out how to work on them on that money factor.
 

·
Registered
Joined
·
387 Posts
The only way to get the full tax credit and IL state rebate is to just buy the car (assuming you qualify for the tex credit). Anything else and you're giving money away.
 

·
Registered
Joined
·
11 Posts
Discussion Starter #12
And now they're saying that with the holiday weekend deals expiring, the Ally lease structure has gotten worse:

6% money factor!
56% residual
for 39mos

Significant changes in the wrong direction. I feel like Lando Calrissian - "This deal is getting worse all the time!"

The new chevy.com national lease still looks better. Their example is $35,170 w/$3099 down = $299/mo for 36mos. My math says they must be using:
- 2% money factor
- 59% residual


Gahh. I finally get all the math and it's still hard to keep on top of all this!
 

·
Registered
Joined
·
387 Posts
And now they're saying that with the holiday weekend deals expiring, the Ally lease structure has gotten worse:

6% money factor!
56% residual
for 39mos

Significant changes in the wrong direction. I feel like Lando Calrissian - "This deal is getting worse all the time!"

The new chevy.com national lease still looks better. Their example is $35,170 w/$3099 down = $299/mo for 36mos. My math says they must be using:
- 2% money factor
- 59% residual


Gahh. I finally get all the math and it's still hard to keep on top of all this!
The only way to make the math work in your favor is to buy the car, take the $11K in tax credits and rebates, and drive the car for a decade. Anything else just won't add up unless you currently spend over $300 a month paying for fuel. Only then would buying a new volt outweigh driving an ICE vehicle that is paid for.
 
1 - 13 of 13 Posts
Top