New Volt Leasee -- I think I got a good deal

[bowulf]

I had a dealer 180 miles away willing to quote me a price of $267.44 for a zero-down 24 mos/30,000 lease on a 2012 car. This is my first lease ever, so I am a bit confused over residual values, but the dealer being that far from home had me asking local dealers to match. The one I went to initially did not or would not get any 2012 in stock to match the price.

The second one I went to today did. Same exact car with only tax, title, doc, first month, and security deposit ($275) at signing $1636. I am pretty excited to get the Volt especially after my current commuter vehicle (minivan) just cost me 1/4th of a monthly payment in gas for less than a weekly commute. I won't be getting rid of the minivan for family trips - having a family of 6'+ teenagers (girls and boys) will make the minivan still a necessity, but it should prolong its life too.

The only question I have left is should I get the Smart Protect Lease program from Ally. How painful is the turn-in process?

[lawjds]

What is the Msrp on the car? I would not get the smart if you keep the car in reasonable shape you will have no issues on turn in.

[DonC]

Congrats on your new car. I'm sure you'll love the Volt.

Lease deals are complex and you need a lot of info: MSRP, downpayments, etc. etc. If you're happy with the lease go and enjoy your car. You'll probably be able to make your monthly payment with your gas savings.

[joetoocool]

That sounds too low for a $0-down lease. The nationally advertised lease rate from GM is $249/month, $2.7K-down. It's listed on the Chevy Volt home page, here.

Here are a few things to check:
- Miles-per-year quota. 12K miles/year is minimum; 15K miles/year is pretty standard for CA. $0.20c per each mile over the quota (expensive). Be vary careful to lease with enough miles to cover your commute.
- Is the Volt eligible for the CA carpool sticker? Chances are he's selling a pre-CA-emissions Volt, the model that doesn't get the carpool sticker. (Only applies if you live in CA, which you don't.)
- Residual: that's what you'll pay if you choose to buy the car at lease-end. 40% of the MSR is about right. If his residual is 50% or higher, it means you'll get stuck with an expensive buy-option in just 2 years. Better to pay a little more now and have a decent residual at lease-end in case you choose to buy.
- Finally, a 2-year lease is very short. 24 months go by quickly. Leases are nice in that they get you into a car quickly. But at lease-end, you own nothing. You're options are to lease another car; buy a car (like this one); or catch the bus. Go for a 3-year lease, which is more typical.

I suggest shopping around some more and comparing local dealers.
Hope this helps.
- Joe
___________
2012 Volt
VoltStats: ClubLongo

[bowulf]

The three year lease was $297 (~$30 more per month) for that same 15k miles/yr Volt. The dealers seemed motivated to get rid of the 2012 remaining Volts. I understand wanting to spread the title/doc/tax fee ($1100) over more months, but you would pick:
3 yr / 45,000 mile lease for $297/month with $1665 at signing ($11760 total payments (not including security deposit) - $326/month)
vs.
2 yr / 30,000 mile lease for $268/month with $1636 at signing ($7530 total payments (not including security deposit) - $313/month)

I understand two years going by with nothing to show for it, but unless my math is wrong, the two year lease is lower effective cost per month. I appreciate the help. I am just trying to figure out how to compare lease terms (longer shorter). My intention ultimately is after the lease term to probably lease / purchase a newer generation (longer range as 40 miles is cutting a day's driving close) if similar deals existed then.

[lawjds]

Two year for sure not even a question

[DonC]

Ask if you can extend. Many times you can add six months on to the lease.

Two years is cutting it close. The next gen Volt is due out in 2014 but supply might be limited at first and prices high. I don't know of any other cars coming out. The Model S is pricey. The Leaf may not be out then. The i3 will be pricey. I guess the ELR would be out. Anyway, if it's not clear you can extend I'd go with the longer lease term. I know that's not intuitive. More an insurance issue than anything. Three years is not a long time to own a car. Having done leases, when the lease comes due you are on the clock and you have to buy/lease something else in an extremely short time window.

But if you can extend then go with the two year.

[lawjds]

Why would you pay more to commit to longer? That's counterintuitative.

[Jerry Garcia]

Is the first car's price including taxes. etc? Seems like an amazing deal with zero down. I can't figure out the significance of the "residual" when leasing. Whether it is 60% or 70%, most of us will not buy the volt in 2-3 years with the future upgrades and extended range that is promised. The dealer make a big deal of calculated the residual, and I can't figure out the numbers. All I care about is the car (how it is equipped, MSRP), monthly OTD payment, milage per year, and down payment. Just compare these numbers and forget the rest. Several posts have compared cars and deals that are not exactly the same, you did not give us the details on the second dealerships lease deal. How much a month is it?

[lawjds]

I agree with Jerry the residual means nothing if you are going to buy a car you should buy it at the beginning to obtain the tax credit makes no sense to buy it off a lease.