Chevy just released lease program details!

[michael]

Personally, I think I'll let somebody else eat the 40-60% depreciation for those first 3 years and buy used instead (after the feediing frenzy is over). Now if I could expense it to a business, I'd get one in a flash.

If this were just another car, I would agree with you. I bought a three year old BMW for $20K that had an original price near $50K. The used one had a six year, 100K mile warranty, better than the new one.

But I can't buy a three year old Bolt. They don't exist. What shall I do for the next three years? Continue to drive a Volt? Get a Leaf?

What if three years ago I said, "I don't want to pay for the Focus Electric...I'll wait three years and buy it cheap". Well, yes, I surely could buy it cheaply today, but who would want it? And what would I have done for the last three years? Drive the BMW?

I DO agree about waiting for the short term feeding frenzy to end. But not to wait three years.

Sometimes you can't be controlled by money alone. We don't live forever. Want a 200 mile EV? Well now you can have one without paying $70-100K for a Tesla. I sure plan to.

 

[SeanNelson]

I leased my Spark EV in October, 2013 and only have 20,428 miles. I expect I will get the 10k/year lease.

The Bolt has so much more worry-free range that you may find yourself driving further in it than you did the Spark.

 

[SparkE]

Yeah (michael), I get your point. I just don't *need* (and can't really justify to myself) paying top dollar for a 200-mile EV. Would I *like* one? Oh yeah! But 80 mi covers 90% of my round trips. As I said on another thread, I'll just buy a used 100-mi (or 85, or 95 mi) EV when my lease is up. Prices were pretty low before, are even lower now, and will probably continue falling for 3-year-old, low mileage 80-mi EVs. A *huge* number of lease returns are going to hit the market over the next 18 months, and a bunch of those people won't settle for anything less than a 200-mi EV. (I just did a search and there are almost 30 3-year-old EVs with fewer than 20k miles for less than $9K within 100 miles of me - right now today, on just one site. Many more than 30 if I up the max miles to 25k)

But then I have the 'luxury' of already owning a 20-year-old corolla (first time I've ever used 'luxury' to describe a 20-year-old econo-box!). I rarely use it (?four times a year? six?) but it's there if I have to drive over 100+ miles away. (There are enough DCFCs around me for me to easily make a 200-mi round-trip with no hassle - except if I want to drive to Monterey.)

I have rarely been a 'must have the latest and greatest and I'll do anything to get it' kind of guy (my wife was the exception). I generally settle for "pretty darn good AND a good deal". So between paying $14K to drive the first (somewhat) affordable 200-mi EV (and then give it back, and pay for the privilege of doing so) OR buying a used 80-mi EV, *and* paying for all electricity and maintenance and insurance and licensing for 3 years, *and* having a car to sell to somebody else at the end for less than a $14K outlay ...

But that's ME - other people have valid reasons for doing what they do. I don't have a 50-mi commute, my winters don't lose me 40% of the range, I have public charging spots out the wazoo, etc. Other people have different motivations and situations.

 

[JupiterMoon]

I just checked the Chevrolet.com web site and the Bolt "Build and Price" and lease calculator are both working again. It appears they may have sweetened the pot again with a higher residual, larger cap reduction rebate, lower money factor, or a combination of all three.

There is also a lease on the Chevy "Offers" page that gets a base bolt to $359/month, $1099 drive-off, + taxes and fees. 36 months, 45,000 miles. This would equate to a $4000 cap reduction rebate with a 58% residual and a money factor of 0.0005.

Does anyone have an actual executed lease agreement yet?

Isn't a lease quote based on zip code?

I just went through the Build & Price for an Arctic Blue basic no options Bolt for an MSRP of $37,495 and the lease offer shows $277 for a 10k/year lease.

I leased my Spark EV in October, 2013 and only have 20,428 miles. I expect I will get the 10k/year lease.

Also I leased my Spark EV because, at the time, I wondered what electric cars would be like in 3 years. Further, if there were advances, such as we have seen with the Bolt, I did not want to try to sell my Spark EV against those AND try to make up the difference between purchasing vs leasing. Glad I leased. Look forward to leasing again for 3 years. I wonder what EV choices we will have in January, 2020.

Be careful with the final payment number. How much down. I don't recall who said it here on this thread but I agree 100%...NEVER EVER put anything down on a lease if you can avoid it. It's throwing money away.

I'd imagine for $277 (+tax??) is with hefty drive off.

 

[leodoggie]

It appears that there are a lot of experienced lessors in this forum. Perhaps one of you gentleman could write a short primer on the dos and don't of leasing. For example I have heard often "don't put anything down". Anyway it would very useful for people like me who have never leased a car. Thanks in advance.

 

[Schnort]

https://leasehackr.com/leasing-101/

is useful

 

[michael]

It appears that there are a lot of experienced lessors in this forum. Perhaps one of you gentleman could write a short primer on the dos and don't of leasing. For example I have heard often "don't put anything down". Anyway it would very useful for people like me who have never leased a car. Thanks in advance.

Suppose you put $5000 down on a lease. Roughly (disregarding the interest that is built into a lease) this would reduce the payments by 5000/36 = 138/month. Actually a bit more due to the reduction in interest you pay.

But what happens if the car is totaled or stolen the next day, for example? Insurance company pays off the leasing company. You get nothing. Your money is gone.

What happens if zero driveaway and car is totaled next day? Insurance company pays off the leasing company. You walk back to the dealer and get another car just like it

 

[GetOffYourGas]

So putting money down on a lease isn't throwing money away, but it is taking a large gamble in order to save a small amount of interest. Penny wise / Pound foolish.

 

[michael]

That's the way I see it.

 

[dan2112]

So putting money down on a lease isn't throwing money away, but it is taking a large gamble in order to save a small amount of interest. Penny wise / Pound foolish.

This is correct. Many people don't realize there is a gap. However if you ask your auto insurance company they do offer "gap" insurance just for this case.

 

[michael]

Gap insurance doesn't pay you. It protects you from being stuck with out of pocket.

These days many (maybe most?) leases include gap insurance. What it's about is this...

In general, your insurance will pay the fair market value of the totalled car. As we all know, cars lose a ton of value the moment they are driven off the showroom floor. Lease payout declines over the period of the lease. Gap insurance covers the gap between what your insurance will pay off (fair market value) and what is still owed if you terminated the lease. Protects you from being hit with the difference.

As best I know, nothing pays your back your down payment. Say goodbye to your money

 

[leodoggie]

Great posts, thank you. Down payment bad, GAP insurance good. Any other dos and don'ts.

 

[JupiterMoon]

Great posts, thank you. Down payment bad, GAP insurance good. Any other dos and don'ts.

Avoid cars with low residuals, high cap costs. Avoid high money factors. Michael is correct about the downpayment...GAP insurance does not recoup your money down. It just covers the cost of the vehicle in a total loss.

Never settle for MSRP. Don't be one of those buyers who just has to have the latest and greatest and wait in line outside like a sheep to slaughter. There's no need, no point, and certainly not worth the loss of money. A lot of people talk about ROI, this that, etc etc...start off with not getting ripped off in the first place on the price.

It's rare to be in a situation where you absolutely need to have a car and can't wait any longer. Some end up that way due to circumstance, poor planning, whatever. But even then, everyone has a choice to buy something that they won't get screwed on. Just don't be one of those people and you'll be fine.

I have a very easy to use and basic lease calculator I created in Excel. It's super easy to figure out and frankly will get you within a few dollars of the final price of the lease the dealerships will give you. I've tested it, tried it live, and stops the salesmen in their tracks from screwing you over. They don't like it but too bad for them. If you are interested, PM me and we can figure something out for me to get it to you.

 

[Schnort]

The only time it makes sense to "put money down" is by buying "MSD"s or multiple security deposits if they allow you. BMW, for example, lets you give them up to 7 MSDs (each MSD is equal to one month payment) that reduces the money factor (aka interest) they charge you on the amount of the car in the lease.

You get the MSD back at the end, plus your reduced interest, so it's usually a good investment (I think it's ~10% return on your money for the length of the lease).

 

[JupiterMoon]

The only time it makes sense to "put money down" is by buying "MSD"s or multiple security deposits if they allow you. BMW, for example, lets you give them up to 7 MSDs (each MSD is equal to one month payment) that reduces the money factor (aka interest) they charge you on the amount of the car in the lease.

You get the MSD back at the end, plus your reduced interest, so it's usually a good investment (I think it's ~10% return on your money for the length of the lease).

That's quite interesting...how do you go about asking for that because I honestly don't think most salesmen would even have a clue as to what that is.

But come to think of it, my friend leased an i3 and put down $2800 down but he said he'll get it back...so I imagine that is what you are talking about?

Also, what happens to these deposits if the car is totaled?

 

[Schnort]

Your insurance would cover that.

The security deposit is about incidental damage (dings, scratches, stains on the upholstery, etc)

 

[michael]

Great posts, thank you. Down payment bad, GAP insurance good. Any other dos and don'ts.

Many (or most) leases include gap insurance. If so, you don't need to get it separately from your insurance company.

When someone sees the Bolt lease, they can tell us if included or not.

For example, the lease on my Volt (from US Bank) says in part...

...if you had in effect the insurance required under this lease at the time of the total loss, we will waive the gap amount...

 

[michael]

Great posts, thank you. Down payment bad, GAP insurance good. Any other dos and don'ts.

Avoid cars with low residuals, high cap costs. Avoid high money factors. Michael is correct about the downpayment...GAP insurance does not recoup your money down. It just covers the cost of the vehicle in a total loss.

Never settle for MSRP. Don't be one of those buyers who just has to have the latest and greatest and wait in line outside like a sheep to slaughter. There's no need, no point, and certainly not worth the loss of money. A lot of people talk about ROI, this that, etc etc...start off with not getting ripped off in the first place on the price.

It's rare to be in a situation where you absolutely need to have a car and can't wait any longer. Some end up that way due to circumstance, poor planning, whatever. But even then, everyone has a choice to buy something that they won't get screwed on. Just don't be one of those people and you'll be fine.

I have a very easy to use and basic lease calculator I created in Excel. It's super easy to figure out and frankly will get you within a few dollars of the final price of the lease the dealerships will give you. I've tested it, tried it live, and stops the salesmen in their tracks from screwing you over. They don't like it but too bad for them. If you are interested, PM me and we can figure something out for me to get it to you.

I would also add, don't accept the "nationally advertised lease". You can almost always do better by getting the dealer to give you some discount not already built into the nationally advertised lease.

 

[OrangeCountyCarl]

I leased my Spark EV in October, 2013 and only have 20,428 miles. I expect I will get the 10k/year lease.

The Bolt has so much more worry-free range that you may find yourself driving further in it than you did the Spark.

Yeah, I have thought about that. But trips we have taken include recharge. For instance, my wife's girlfriend has a EV. She is 61 miles away. Whenever we visit her, I just charge up at her place. Other overnight trips within 70 miles have included stays at hotels with chargers. Since we are in mid-Orange County, down to San Diego & up to L.A. has not been a problem with the Spark. We plan for the recharge. With the Bolt we won't have to. Also, I no longer commute. That is where most of one's mileage comes to play.

If somehow we do manage to reach the 30k limit before turn-in, we would just use the wife's gv. But seriously, we are not really planning to trip w/ the Bolt anymore than we already have with the Spark. We just won't have to plan for recharge to get home.