Is this a good deal on a lease ??

[club206]

Hello, I am just finishing up working with a dealer to see if a Volt will work for me. I hope it will but wanted to get some opinions first. Thanks for all of your help!

First I have a trade. 2007 Toyota Camry Hybrid with 39k miles on it. I know verrry low. Edmunds has fair value on trade to dealer at about 15 to 16K.

I am looking at a $45,115 Volt and it is a lease. The deal is as follows on a lease:

$337 a month NO OUT OF POCKET or extras for 10k miles a year which will more than work for me. They are also going to give me a $12k check back for the trade. I know I need more information such as money factor etc. so any ideas are helpful! I first spoke to the dealer tonight and am calling tomorrow with questions.

Any thoughts? Thanks to all as I am really looking to get a volt in the next week or two.

[bonaire]

When dealing a lease, you still can barter down the price. Don't work with "monthly price" but rather start with car price, then trade-in value and then go figure the monthly payment last. Too many dealers work the "monthly price" first. Ask them if they are writing the lease on $45,115 or something else. Since they are low on the trade check, I suspect they are applying some of the trade as deposit into the lease to get the lower monthly - ask them how much of your trade is going against the price.

I would have asked for this as a preferred deal to move a high-optioned Volt:
- $43000 price
- price your trade appropriately at $15K - you have a low-miles hybrid.
- apply $3.5K of trade as deposit
- give check of $11500 (or 3K/12K check)

Something like that. I bet they'd take that deal. See if they will share the "price" the car is based on. I bet it is $45,115. For a 10k mile lease, you should be able to do a little bit better. Not much, but fight for every dollar. Dealers are dealing and paying MSRP at this point should be avoided. Tell them you have information that other dealers are giving 2-3K off MSRP (and they definitely are).

[Volt779]

There is a very informative thread on Edmunds about Volt leases and current terms. Here is a post from that thread that might be helpful - don't know if these terms are still valid.

"Ally's current base lease rate and residual value for a 36-month lease of a 2012 Chevrolet Volt with 15,000 miles per year are 1.1% and 59%, respectively. This lease rate is equivalent to a money factor of around .00046, like you mentioned.

GM is providing a $3,045 cash incentive on leases of this car through Ally in all areas but California (where the allowance is higher). Negotiate a selling price that's as close to dealer invoice as possible (and from what I hear dealers are happy to discount Volts right now) and then have the dealer subtract the aforementioned cash from that."

Here is a link to the thread - maybe worth posting there as well:

http://townhall-talk.edmunds.com/dir...index=.f2475df

[DonC]

The bad news is that negotiating a lease based on monthly payments is a terrible approach. The good news is that this is at least a fair deal. If you consider that a 36 month lease on a base model is $350/month, then you're looking at a lease for a loaded model at roughly $15 less a month. They're giving you a check for the trade in which is $3K to $4K short of fair value. Take $2K for cap reduction as required by the standard lease on the base, and the $550 for the reduction in the monthly payment, leaving you to make up $500 to $1500. But you're getting a $45K car not a $40K car, which easily accounts for$500 to $1500.

Back of the napkin suggests it's reasonable.

[club206]

Thanks. Sounds reasonable and we are getting closer..... Have another call out to see if I can be swayed.

[club206]

Hi all...
so I am getting closer to a deal and met with another dealer last night. here is his offer on a base volt...

39995 msrp
36631 purchase price after cap cost reduction and a few bucks off
14000 for my trade which on edmunds is worth 15000 for a trade in to dealer
3000 out of pocket from above trade to cover up front plus taxes and first month payment so.check to me for 11000
10k miles a year which is fine fir me
289 a month payment on the lease

any thoughts??? Want to join the list of happy volt owners real soon!

[DonC]

Not loving it but some factors are a little confusing. Let's just do the lease and leave the trade in to the side. You can deal with that separately.

Some things you can't change if you're using the Ally Bank deal. The residual should be $24,397, which is 61% with 10K miles a year, and the interest rate should be 1.1%. There may be an acquisition fee of $700 which I won't use but which can add to the costs added to the lease.

You should be able to get $2k off MSRP. That means you are subject to depreciation of Purchase Price - Residual = $13,598. GM is also tossing another $3040 in as a contribution, reducing this amount to $10,558. Assuming you put another $2000 in as cap reduction you'd need to pay off $8,558 over 36 months or $237/month. With interest it's $264.10. Add tax to that.

Now you said you put in $3000 and another $1000 from the trade. No idea how they're being used. I did use $2000 of the $3000 as cap reduction so maybe $500 of that goes to first month plus fees, leaving $500 from the $3000 plus the $1000 from the trade out there unaccounted for.

You can run these number yourself with an online calculator like the one you here: http://www.leaseguide.com/calc.htm If you have questions about anything just ask, someone here should be able to give you the answer.

[elljefe]

Thanks for the link to the Lease Guide. I plugged in some numbers and want to know if they match up with reality.

• MSRP $42,500 (not fully loaded, but not base)
• Base Cap Cost $38,500 (a couple of dealers are offering $4k+ off)
• Addl. Costs $1,000 (dealer fee, bank fee, acquisition fee, etc... probably an inflated number)
• Cap cost reduction $4,145 (Ally/GM contribution + CA additional $1,110 incentive... nothing down, no trade-in)
• Net Cap Cost $35,355
• Residual Value $25,925 (61%)
• Interest Rate 1.1%
• Term 36 months
• Sales Tax 8.75% (Los Angeles County)

Monthly payment is $290.13 + $25.39 (tax) = $315.52 (first month free in CA with Ally lease)

So 35 months @ ~$315/month which includes tax?

Please let me know if that sounds about right and if that is what others are roughly paying.

Thanks!

[DonC]

Looks good if in fact you can get $4K off. Usually the destination charge is in the MSRP and purchase price. Also note that CA treats the $7500 contribution as taxable for sales tax purposes so that may show up somewhere.

The acquisition fee is OK because Ally does have to buy it from the dealer. Some people have reported not seeing it in their lease though.

[club206]

Thanks everyone! SO far the dealer just knocked off $20 a month without me calling him as he wants a deal done by the end of the month. Waiting to hear back from him when he gets all the numbers together (including the purchase price)

Here it is so far:

$39995 - base volt
$3000 down
$3015 Cap cost reduction - GM / ALLY current offer

10k miles a year
$269 a month

The $3000 up front includes first month payment, taxes, registrations etc.....all IN

I know this seems high and I do need a few numbers such as interest rate, price of vehicle, residual which I am hoping to have later today.

Any thoughts on this if you think this makes sense?