Good, Bad, or the Ugly Lease, San Diego. . . . . or just OK?

[balee123]

Been reading here for a while and was wondering if anyone could give me input on this lease quote. Also, what would be a reasonable lease with the following terms.


Base Model with My Link, 12,000 mile lease

MSRP: $40,095
Negotiated Price: $38,486
Down Payment: $1500
Ally Cap Reduction: $3370
Total Cap Reduction: $3743

Net Cap Cost: $35885.97

Interest rate: 1%
Security Deposit: $400

Payment: $381.40 per month.

If this is not a reasonable lease, any suggestions for how to do better in the negotiation. I have already gone back and forth a couple of time with different dealers.

Thanks in advance for any information this community can send my way.

[DonC]

It's not that far off but there isn't enough information. Was your residual 60% (which is what it should be). Obviously if the Ally lease cash is $3370 (right on BTW) then where did the down payment of $1500 go? There is a $800 acquisition fee plus tags and doc fees. What are those? Taxes? You have a security fee of $400. How was that treated? (I thought that was waived). How you treat all these items or additional items make a difference and it's hard to come up with your number. I just sort of guesstimated and got $332+tax. (Also not clear whether your lease payment is after tax).

The good thing is that the interest rate and the lease cash are right, and those are two areas where things can go awry.

[balee123]

Hi Don,

Thanks for your reply. Here is all the information I have.

Do you or others think there is anything obviously off, or have suggestions for areas to negotiate further. I have another dealer that I'm dealing with as well. They appear to be giving a better deal, but I have to pursue that further. Just want to have all my ducks in a row for this quote. Thanks for any info you all can send my way.

Under Capitalization:

Doc Fee: $45
Acquision Fee $795
Licencse Fee $348
Cap Fees $348
Gross Cap Cost $39,629

Under Cap Cost Reduction:

Customer Cash $1500
Total Rebate $3370
Amt Applied Upfront $1126.97
Total Cap Reduciton $3743.03

Residual % 60%
Adj Residual $24057

Under Payment:

36 month
Rate 1%
Security Deposite $400
Advanced Payment $381.40
Total Cap Reduction 3743.03
Upfront Charges $345.57
Initial Payment $4870
Due on Delivery $1500

Base Monthly Payment: $353.97
Tax: $27.43

Total Payment $381.40

[DonC]

Most things look good. But there are three items that I'd question. One is "Cap Fees" for $348. We've seen this but I have no idea what this is for. It is definitely not a standard fee. Second is the "Upfront charges". Are those fees above and beyond those detailed elsewhere? If not what are they? We've seen this before as well but it's not a standard fee. If you find out please let us know what the explanation is.

The only other issue would be the security deposit. If it's real then it's refundable, but the 1% interest rate suggests your credit is good, and usually if your credit is good a security deposit isn't required. That's no big deal though.

To keep this in perspective, with these charges we're talking about $720, which isn't a huge amount of money. On the other hand, the dealer seems to have added that amount back to the negotiated purchase price (that's what I'm thinking I could be wrong and the upfront charges might just be the cap fees moved to another place). On the other hand, you should know that, if the dealer hits sales targets, it's getting an extra bonus of $2500 for every MY 2012 it moves. They are definitely not losing money. Seems like you might have some leverage.

Everything else is spot on BTW. No messing with the residual or the interest rate or even the doc fees -- good price on those BTW. Everything considered this seems like a decent deal. Some people have better monthly numbers but it's hard to know everything that went into the sausage, as it were. For example, one person had great monthly payments but mentioned in passing that he got a very low trade-in. Well, if you lose $3000 on the trade that is like paying an additional $85/month. You have to know every part of the lease and there are lots of parts.

Hope this helps.

[balee123]

Thanks so much for the info

[GM-4-LIFE]

balee123,

I just sent you a private message. I would give Rick at Keyes a call being you are in Southern California. Tell him you are Volt forum member and he is doing $2800.00 below invoice until June 30. He has 20 Volts he has to move and I am sure he has what you are looking for and can deliver the car to you if you can't make the trip up to L.A.

Rick at Keyes Chevrolet: 818-231-1286 is his direct cell. You can text him or call him.

Let me know how it works out. It's worth the 5 minutes of your time to call him. You will save thousands!

Shawn

[DonC]

In thinking about this, we've seen the "Cap Fees" or "Upfront Charges" on CA leases and I'm wondering if they are the sales tax due on the cap reduction/lease cash. You're buying the car for the negotiated price. CA wants the sales tax on that price. Since your monthly fees are based on capital costs after cap reduction has been applied, your monthly fee won't capture this. To make up for this CA chargers sales tax upfront on the cap reduction. I had a similar payment when leasing the Leaf. Tax was charged on the $7500 credit used as cap reduction.

If this is the case then the charge is perfectly fine.

Note that in some states if you trade a car you only pay for the difference. In CA I'm pretty sure you pay sales tax on the trade in value.

[George S. Bower]

Balee,
It's best to use a spreadsheet. I talked to my dealer and had my spreadsheet matching his quote before I went in to make an offer. Take your computer w/ you when you go and/or know what the sensitivity coefficients are at a minimum.

I just bot my Volt on an Ally sign and drive lease and I have a spreadsheet that matches my final sale. A jpg of the spreadsheet can be found here:
http://gm-volt.com/2012/06/05/a-long...-his-new-volt/

If you want the working spreadsheet send me a pm with your email address and I will email the excel spreadsheet to you.

[GM-4-LIFE]

Balee,
It's best to use a spreadsheet. I talked to my dealer and had my spreadsheet matching his quote before I went in to make an offer. Take your computer w/ you when you go and/or know what the sensitivity coefficients are at a minimum.

I just bot my Volt on an Ally sign and drive lease and I have a spreadsheet that matches my final sale. A jpg of the spreadsheet can be found here:
http://gm-volt.com/2012/06/05/a-long...-his-new-volt/

If you want the working spreadsheet send me a pm with your email address and I will email the excel spreadsheet to you.

George,

I really liked your write-up! Very nice job! Your blog made me want to go and get a Volt RIGHT NOW! Only problem is my current GM lease ends in February, so I got 7 payments left and then I am a free agent and can get a Volt.

Shawn

[sinnombre]

I'm in Texas so things are a bit different:

MSRP: $41,885
Negotiated Price: $38,950
Down Payment: $0 except tax and license
US Bank Lease Cash Reduction: $2900 + $1300 PCV rebate =$4200
Total Cap Reduction: $4200

Net Cap Cost: $34750

Interest rate: 1.78 %
Acquisition : $595

Payment: $301.30 per month.

Residual 61% = $25,510 (36,000 mile lease)