[ad#post_ad]Today the first Volts have arrived to dealerships from Detroit, and are being picked up by customers across the nation. Today there will be 5 simultaneous deliveries including one to a retired airline pilot named Jeffrey Kaffee, in Denville, NJ who is the first overall. Kaffee traded in his Prius for the Volt. With the number of deliveries multiplying rapidly in the coming day weeks and months, people taking ownership now have to now decide whether to buy or lease the car.
At an MRSP of $41,000 the cutting-edge Volt comes in at a relatively affordable $33,500 after the $7500 federal tax credit it deducted. GM’s banking partners have formulated some creative methods for dealing with the credit such as floating the buyer a zero interest separate $7500 loan that comes due when they get their tax refund.
The lease option was created to make the car even more affordable, making the car available to a larger group of drivers.
The terms of the lease were spelled out in the Summer as $350 per month with $2500 down for a 36 month lease with 36,000 miles.
What hasn’t been known is what the car’s residual value will be at the end of the lease, and what the customer could then buy it for.
Volt marketing manager John Hughes notes that every deal “will be a little different,” and “depends on the equipment and how the deal is written.”
“There’s some variability in it,” he said. “We’ve given dealers all the parameters.”
Rather than spell out those subtleties for us and long with the myriad of disclaimers that accompany them, Hughes said it was best we “talk to dealers to ask details.”
Gordon Lai, a sales manager at Singh Chevrolet in Riverside, California, offers us the following details which he said came directly from GM:
US Bank (National)
Term: 36 Months
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 Lai. “Add any options, dealer markups, increases in Sales Tax, etc… and the Payment goes up, or the ‘Out-of-Pocket’ down payment goes up.”
This entry was posted on Wednesday, December 15th, 2010 at 8:11 am and is filed under Financial. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.