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My 2013 Volt (premium package) is coming off lease in August. I called Ally to see what the buyout value was and they quoted me $27K. After I finished laughing, I checked KBB and found that that's roughly double what the market value looks like.

I'm obviously not going to buy the car for 2x its market value. I like it and would love to keep it for $15K-ish. I saw in the US Bank buyout thread that people commonly call US Bank and get them to make a better offer-- does that work with Ally or should I just give it back to 'em? (I'm over my lease miles, if that matters one way or another).
 

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WOW that's sheer insanity. I just had my 2013 loaded Volt appraised by Tesla for $14,350 as a trade.

I see them on cars.com listed as high as $18K but that's it. The average is like $15K to $16K. Run away from that deal.
 

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Yep, Ally doesn't negotiate. Somehow getting raped at auction is a better option for them then offering a reasonable, higher buyout price to the lessee.
 

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My 2013 Volt (premium package) is coming off lease in August. I called Ally to see what the buyout value was and they quoted me $27K. After I finished laughing, I checked KBB and found that that's roughly double what the market value looks like.

I'm obviously not going to buy the car for 2x its market value. I like it and would love to keep it for $15K-ish. I saw in the US Bank buyout thread that people commonly call US Bank and get them to make a better offer-- does that work with Ally or should I just give it back to 'em? (I'm over my lease miles, if that matters one way or another).
Wasn't that value available on your Lease paperwork already?
 

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I suspect that Ally (formerly GMAC?) struck a deal with GM to stick to residuals in order to spur sales of new Volts after turn-in. Worked on me. I paid too much, but love the Gen 2 and I'm free of lease mileage restrictions. No regrets. Driving way more now and enjoying it.....more.
 

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There may be a very small minority of uninformed lessees who actually pay that price, so it pays off for them from time to time. And they probably find it easier to turn them over to an auction than to negotiate every sale individually. A bank is not in the business of retailing cars. They are in no way equipped or staffed for that.

I used to work in banking, and one thing that everyone in banking and real estate investing knows is that when a bank sells a foreclosed house, it sells for far less than it appraised for when the loan was made. One reason is that banks are lousy at selling property. It is not their primary line of business.
 
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Yet you reaped the benefit of underpriced lease payments that resulted in the overpriced residual?

Yes, Taser54, this is exactly the way it worked. MY211 - My2015 Leases, Ally Bank and US Bank were the GM / Chevrolet leasing entities.

The Federal $7,500.00 was captured by the lessor as an enhancement to the residual value, (Raising this Residual Value) and thus lessening the money owed gap between the Capitalization Cost (Your deal amount) and this raised new Residual Value.

Remember, MY11/12/13's were sold and leased before the stunning $5,000.00 drop in M.S.R.P. for the My14 Chevy Volt. More on this below.

Yes, this greatly reduced the payment obligation, monthly payment and taxes but made a Chevy Volt EREV lease buyout at end of lease a non option.

GM Financial joined the GM Chevrolet Financing arm in 2013. This arrangement continued until GM chose GM Financial as sole captive lender much to the protesting of Ally Bank.

It is true that Ally as a rule will not negotiate this enhanced residual for a lease end buy-out. This is why I moved into a MY15 Chevy Volt EREV when my lease ended March of last year.

Tear in my eye but loving the WiFi, ERDTT only at <16 degrees and greater range of my now 14 month old MY15 Chevy Volt Extended Range Electric Vehicle!

Now...


Ya know, I become well annoyed when I see stories about Owners reporting low trade in values. See the stories of Chevy Volt EREV, Nissan LEAF and other EV's PHEV's getting low resale marks but in every case, overlooked is the over $13,700.00 of paper, artificial depreciation that has occurred.

The $7,500.00 Fed tax Credit, wether purchased or leased devaluated the entire fleet of used Chevy Volts right out of the shoot.

It did not matter if individual buyer Joe could collect that much in taxes back the next year, based on his income, this amount was used as a retained value depreciator on all used Chevy Volts.

The second hit was in 2014. The M.S.R.P. was reduced on the window sticker(The Monroney Sticker) by $5,000.00!

Now totaling $12,500.00 in total on paper depreciation.

My 16/17 the M.S.R.P. dropped again. this time another $1,125.00!

Now used Chevy Volt's out in the wild from 2011 to 2013 have $13,625.00 of manufactured depreciation affecting their resale value going forward.

Note that then GM North American President Mark Reuss stated publically that, 'When we cut our cost through engineering and manufacturing our Chevy Volt we will pass it on to our customers'

So, Ally Bank is all but gone as their last leases play out. GM Financial is GM captive financial arm and yes they do negotiate.

Take this to heart however, with over $13,625.00 dollars of what I will argue is artificial depreciation, used Electric Fueled Vehicle like the Volt EREV LEAF, Ford Focus and other big Traction Battery EV's can be had for quite an inexpensive price. (Ahem, not Tesla Motors, lol)

Heck, I'm saving $120.00 a month in fuel costs, now, even with the 'cheap' gas (Not For Long!) with my 2015 so buying a used Chevy Volt EREV can be a no brainer!

Remember, plug into the 110V AC outlet every night and 74% of US drivers can get 100% of their daily driving range, all electric, for bout a buck a day! (assuming .12 Cents kWh national average utility cost)


Best-

Thomas J. Thias

Sundance Chevrolet

517-749-0532

Publisher: https://twitter.com/amazingchevvolt
 

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^ I agree with your math and that does not even account for state tax incentives, where they apply. Another effect is obsolescence. When a new model year comes out at a lower price AND has more battery range, that devalues the old model twice.
 

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I wonder if you could ask them to let you know when and where the auction will be so you would have a chance to bid on it
This ^^^. Find a buyer for local used car dealer. Give him/her your VIN and tell him you'll pay $1,000 over his cost, up to $XXXX, to buy it back. It will be yours again in a week or two. And Ally will be out $10K. What could be better?
 

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Heck, I'm saving $120.00 a month in fuel costs, now, even with the 'cheap' gas (Not For Long!) with my 2015 so buying a used Chevy Volt EREV can be a no brainer!
I agree with the analysis, but I don't think anyone is saving $120/month in fuel costs. Assuming national averages: 1000miles/month, $2.28/gallon and $0.12/kWh:

Gasoline car 24MPG: fuel cost $95
Gasoline car 38MPG: fuel cost $60
Gasoline car 50MPG: fuel cost $46
Volt EV 2.8Miles/kWh: energy cost: $42

So the gain anywhere between $2/month (vs Prius) and $52/month (vs large car). Gas prices need to rise dramatically to have it make sense vs the depreciation and insurance costs.
 

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I agree with the analysis, but I don't think anyone is saving $120/month in fuel costs. Assuming national averages: 1000miles/month, $2.28/gallon and $0.12/kWh:

Gasoline car 24MPG: fuel cost $95
Gasoline car 38MPG: fuel cost $60
Gasoline car 50MPG: fuel cost $46
Volt EV 2.8Miles/kWh: energy cost: $42

So the gain anywhere between $2/month (vs Prius) and $52/month (vs large car). Gas prices need to rise dramatically to have it make sense vs the depreciation and insurance costs.
I drive about 1700-1800 miles a month - upwards of 2200 miles a month if I go home to visit my parents sometimes. I should be saving a nice chunk of change when I get my 2017 hopefully in 2 weeks or so (current status code 3400) (70 miles round trip for work, if they install a charger I'll be paying zero for gas outside of a trip to houston once every few months)

Helps that my electric contract is locked at 9 cents per kwh for the next 2 years :)

The car I have now (2012 kia rio) isn't bad... it's paid for, but ill only get maybe 35mpg at best.
 

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I agree with the analysis, but I don't think anyone is saving $120/month in fuel costs. Assuming national averages: 1000miles/month, $2.28/gallon and $0.12/kWh:

Gasoline car 24MPG: fuel cost $95
Gasoline car 38MPG: fuel cost $60
Gasoline car 50MPG: fuel cost $46
Volt EV 2.8Miles/kWh: energy cost: $42

So the gain anywhere between $2/month (vs Prius) and $52/month (vs large car). Gas prices need to rise dramatically to have it make sense vs the depreciation and insurance costs.
You make a lot of assumptions right there.
 

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2.8 Miles/kWh is really low. I get close to 5.0 Miles/kWh most of the year, so that's only $24 for 1000 miles at the rate you used. I average 1500 miles a month and most are electric. Not saving $120, but it's more than what you estimate.
 

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Turn it in and either lease a Gen2 or buy used Gen1 at a steal...If you search autotrader/cars you see tons of them for below $15K...There's a few MY13s with higher mileage under $10K...
 

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Turn it in and either lease a Gen2 or buy used Gen1 at a steal...If you search autotrader/cars you see tons of them for below $15K...There's a few MY13s with higher mileage under $10K...
Give it two weeks and you will see your old Gen 1 for under $15K.
 

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My 2013 Volt (premium package) is coming off lease in August. I called Ally to see what the buyout value was and they quoted me $27K. After I finished laughing, I checked KBB and found that that's roughly double what the market value looks like.

I'm obviously not going to buy the car for 2x its market value. I like it and would love to keep it for $15K-ish. I saw in the US Bank buyout thread that people commonly call US Bank and get them to make a better offer-- does that work with Ally or should I just give it back to 'em? (I'm over my lease miles, if that matters one way or another).
I saw a fully loaded '13 with <36k miles sell for less than $13k a few weeks ago from an online dealer as a reference.
 

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I agree with the analysis, but I don't think anyone is saving $120/month in fuel costs. Assuming national averages: 1000miles/month, $2.28/gallon and $0.12/kWh:

Gasoline car 24MPG: fuel cost $95
Gasoline car 38MPG: fuel cost $60
Gasoline car 50MPG: fuel cost $46
Volt EV 2.8Miles/kWh: energy cost: $42

So the gain anywhere between $2/month (vs Prius) and $52/month (vs large car). Gas prices need to rise dramatically to have it make sense vs the depreciation and insurance costs.
I traded in a 2009 CTS-V when I bought my new 2012 Volt. At that time, I was saving nearly $500 per month in fuel costs. LOL
 
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