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I've been playing with the numbers on the proposed Volt Lease, and the way I can get to the $350/month payment for a 36 month term is to assume:

1. MSRP of $40,280
2. A Residual Percentage of 55%
3. That for purposes of calculating the monthly depreciation, GM starts with the negotiated purchase price LESS the $7,500 rebate (instead of the full MSRP) - i.e. it's (32,780-22,154)/36
4. A Money Factor of about 0.0010416 (the equivalent of 2.5% APR)
5. A Capital Cost Reduction (Down Payment) of $2,500

Is there anyone with a connection to GM Finance or US Bank who can confirm? I just want to calculate what my actual payment will be equipped with the options I've chosen, and want to know if using the correct baseline assumptions.

Thanks!
 

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There's this post and some followup in another thread. http://gm-volt.com/forum/showthread.php?5164&p=48436#post48436

Sharon reports:

Yesterday I was shown a document entitled "12-3-10 US Bank Residual Values". Included in this document was a page entitled "Rate Sheet - Chevrolet" which was mostly like a foreign language to me. However, there was also a page entitled "Volt Residual". Below is what was on that sheet:

*Example
MSRP 44680.00
36mo % x 43%
Base Residual Value = 19212.40
Credit + 7500.00
Contract Residual Value = 26712.40

There is discussion as to exactly what this means, read my followups. In hindsight, I should have started a new thread.
 

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There's this post and some followup in another thread. http://gm-volt.com/forum/showthread.php?5164&p=48436#post48436

Sharon reports:

Yesterday I was shown a document entitled "12-3-10 US Bank Residual Values". Included in this document was a page entitled "Rate Sheet - Chevrolet" which was mostly like a foreign language to me. However, there was also a page entitled "Volt Residual". Below is what was on that sheet:

*Example
MSRP 44680.00
36mo % x 43%
Base Residual Value = 19212.40
Credit + 7500.00
Contract Residual Value = 26712.40

There is discussion as to exactly what this means, read my followups. In hindsight, I should have started a new thread.
I'm not an auto lease expert, but my take away from these numbers is that this results in a $533/month lease [$19212/36 mos], the contract residual will be the cost to purchase the vehicle after the lease expires.

Any experts out there, please comment!
 

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I'm not an auto lease expert, but my take away from these numbers is that this results in a $533/month lease [$19212/36 mos], the contract residual will be the cost to purchase the vehicle after the lease expires.

Any experts out there, please comment!
Not an expert, but my take is:

44680 price
- 2500 cap. cost reduction (up front payment)
- 7500 tax credit to GM
--------
34680.00 subtotal
- 19212.40 residual
--------
15467.60 amount finenced
/ 36 months
-------
429.65 per month

Now, that assumes a zero percent money factor. And that's a loaded car. The base price is 40,280.00.

I think the "Contract Residual" is what the bill of sale will be if the lessee decides to buy, for sales tax purposes. The base residual should be the cash buyout.
 

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Thanks Marty! That does make more sense than my dribble. Amazing how $4000 in options can raise the monthly lease from the advertised $350/mo. to $430 [plus tax!]
 

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Ya that is what I can't figure out. The cost to add the options is raising the payment $80? Isn't that pretty much assuming the options have almost no residual? I guess I am concerned that my payment is increasing 20% for a 9% increase in MSRP... Is this really going to be the case?
 

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Thanks Marty! That does make more sense than my dribble. Amazing how $4000 in options can raise the monthly lease from the advertised $350/mo. to $430 [plus tax!]
That's about on the mark, though. As I recall the rule of thumb is about $20 per thousand.
 

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Ya that is what I can't figure out. The cost to add the options is raising the payment $80? Isn't that pretty much assuming the options have almost no residual? I guess I am concerned that my payment is increasing 20% for a 9% increase in MSRP... Is this really going to be the case?
I think there's some subsidizing in the $350 figure. Let's take a base car, using the same 43% residual. Note that these are all net figures, exclusive of taxes, license, etc. and assuming that you have an honest dealer who isn't going to try to rip you off with documentation and origination fees, etc. :

40280.00 MSRP
- 2500.00 Cap. cost reduction (up front payment)
- 7500.00 Tax rebate captured by lessor
----------
30280.00 subtotal
- 17320.40 residual (40280 * 43% - Sharon's US Bank figure)
---------
12959.60 amount financed
/ 36 months
---------
359.99 per month.

again assumes zero money factor (finance charge)

Now as I posted in another thread, 359.99 is a very suspicious-looking number. If GM had said "under $360" instead of "$350" it would make sense. So maybe they're subsidizing it by $9.99 per month but only on a no-options car. Maybe Sharon's 43% residual figure is incorrect.

Note that these are net numbers.

Real world up front:

$2500.00 on signing - as advertised
720.00 destination charge
257.60 sales tax (figured on $3220 at 8% - will vary)
539.00 registration (California, from https://mv.dmv.ca.gov/FeeCalculatorWeb/newVehicleForm.do)
---------
$4016.60 Zero options, MSRP, no added scam fees, estimated tax and registration for California

Real world monthly lease:

$350.00 (GM advertised, may really be 359.99)
28.00 Sales tax at 8% - estimated)
---------
$378.00 (May really be 388.79 if base payment is really 359.99)

Real world purchase at lease end:

$17320.40 residual
1985.63 sales tax at 8% on $24820.40 - Add the $7500 tax credit back in, state taxable.
----------
$19306.03

Again zero options, zero scam fees, estimated sales tax of 8%.

The key questions that someone with a Volt about to be delivered need to ask:

* What would be the sale price of the car?
* Itemize exactly what I pay up front. How much of it is cap cost reduction?
* Exactly what is my lease payment? Does that include sales tax?
* If I decide to buy the car at lease-end, for what amount do I write the check exclusive of tax?

Residual and money factor numbers would be nice.

FYI, to convert lease money factor to equivalent APR, multiply by 2400 (regardless of lease term).
 

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Excellent post, thanks Marty! I'm going to add that to the FAQ.

Has anyone found a good lease payment calculator online? The one I've used so far is the first Google hit, and is OK but it's Flash based and is a pain to do what-if scenarios with.
 

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Excellent post, thanks Marty! I'm going to add that to the FAQ.

Has anyone found a good lease payment calculator online? The one I've used so far is the first Google hit, and is OK but it's Flash based and is a pain to do what-if scenarios with.
As soon as we get some hard numbers on the actual residual percentage, etc. I'll post a Google Docs spreadsheet and/or an Excel template. Keep in mind if you got here from the FAQ that there are a LOT of SWAGs and assumptions in that post. And we know the derivation of the word "assume".
 

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I think there's some subsidizing in the $350 figure.
I have thought that for a while. My guess is that GM wanted to match Nissan's advertised lease price for the Leaf, so they kicked in some hidden money to buy down the lease, which usually takes the form of either a lower interest rate or a higher residual. That's one big reason I've decided to lease, because the "cash on the hood" is only being put there, if I'm right.
 

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I have thought that for a while. My guess is that GM wanted to match Nissan's advertised lease price for the Leaf, so they kicked in some hidden money to buy down the lease, which usually takes the form of either a lower interest rate or a higher residual. That's one big reason I've decided to lease, because the "cash on the hood" is only being put there, if I'm right.
I agree! I'm leasing as well. If the battery and systems hold up over time, a low milage off lease purchase looks pretty good.

VIN63 is on the Truck heading East!
 

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Of note, a member of this forum contacted me off-list and shared a printout of a lease proposal that is completely wacky.

Essentially, the $7,500 tax credit is omitted from the figures, there's a $795 "acquisition fee" tacked on, and a $2,000 "GM rebate" that supposedly expires January 3. Put this all together and there's an extra $6,295 sneaked in there if you get the "rebate" and an extra $8,295.00 if you don't. Residual is about 64%, making the buyout outrageously expensive. Perhaps an OK deal if you're sure you want to walk away at the end of the lease, a horrible deal if you would consider buying the car out. Money factor is a very reasonable .00025 but the $795 acquisition fee plus zero credit for the $7500 tax rebate kind of negates this.

However, the mileage quoted is 15,000 instead of 12,000.

My suspicion is that this dealer may be using his own non-Volt-customized leasing company as the numbers are really out of line.

Anyone else have firm lease quotes to share?
 

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I have seen in several places and also confirmed by the dealer I am working with that US BANK is the lender behind the advertised $350 a month figure. While figures from other lenders might be interesting, we should wait until we know firm national US BANK figures before entertaining any lease offers by anyone else. This should be just a matter of 1-2 days from this point given some should be signing lease paperwork this week.
 

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My dealer told me yesterday that they are not going with US Bank on the lease. They're supposed to tell me today what their terms are. Shields up.
 

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Hopefully someone can get the scoop on the residual, added cost to the monthly payment per $1,000 of options, the cost for increased milage (15k) upfront, the penalty for miles over at the end of the lease, and if they have a 27, 30, or 48 month lease...
 

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For the record, today's front page article is about the lease terms:

http://gm-volt.com/2010/12/15/chevrolet-volt-lease-terms/

It quotes the following US Bank lease details, provided by a dealer who said they came straight from GM:

US Bank (National)

Term: 36 Months
MSRP: $41,000.00
Selling Price: $41,000.00 [If dealer charges more, the payments change upward.]
Acquisition Fee: $695.00
Cap Cost Reduction: $2,000.00
Down Payment: $2,150.00
Balance/Amt. Financed: $37,545.00

Program Rate: 0.60

Program Residual: 43.00% (12,001 miles to 15,000 miles per year)
Low Miles Residual: 44.00% (12,000 miles or LESS per year)
Base Residual Value: $18,040.00
Federal Credit: $7,500.00
Contract Residual Value: $25,540.00

Program Payment: $349.51
Featured Payment: $350.00
First Month’s Payment: $349.51
Down Payment: $2,150.00
Security Deposit: $0.00
DUE AT LEASE SIGNING: $2,499.51* [plus fees noted below]
Advertised Due at Signing: $2,500.00

Total Monthly Payments: $12,582.36

Disposition Fee: $395.00 (Due at Lease End)

*Other Fees Due at Signing: All DMV Registration Fees, DMV Doc Fee, 8.75% Sales Tax on First Payment.
“The figures above are SPECIFICALLY for a Base Model Volt sold at MSRP only ($41,000),” said [the dealer]. “Add any options, dealer markups, increases in Sales Tax, etc… and the Payment goes up, or the ‘Out-of-Pocket’ down payment goes up.”
 

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I think these are the most interesting items in that document:

Acquisition Fee: $695.00
Cap Cost Reduction: $2,000.00
Program Rate: 0.60
Disposition Fee: $395.00 (Due at Lease End)
Acquisition Fee: dealer padding? Or is this bank padding? Who gets this?
Cap Cost Reduction: paid by GM to subsidize/discount the lease?
Program Rate: interest rate? (0.60% APR)
Disposition Fee: dealer padding? Or is this bank padding? Who gets this?

My dealer appears to be going with another company (not US Bank) so I'm going to have to scrutinize their numbers closely.
 

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Ouch. The numbers are looking a worse and worse but still a decent deal. I am still interested in the monthly payment for a $43500 volt and 15k miles per year. If it is over $450 before taxes I will be disappointed.

Chris, what mileage are you getting on your lease and what is the total MSRP for your volt?

I still can't believe the residual after 3 years 36k is only 44%. The prius is like 55% isn't it? Is everyone going to buy at the end of the lease? I really don't want to buy at the end of my lease....
 

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Looks like no security deposit. 44% residual is just sad. Look forward to some of the further breakdowns and some real world examples posted by this weeks owners. Wouldn't be surprised they are all playing with their cars and forget about us quickly.
 
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