Looking at buying vs leasing - never leased before

[JerryBob]

https://insideevs.com/chevrolet-mightve-revealed-2020-electric-crossover/
Is it worth it to lease for 3 years and upgrade to a possible next generation or buy now? A lot of manufacturers are claiming to have new EV's out by 2021.

 

[michael]

http://www.qualitychevy.com/VehicleSearchResults?search=all&make=Chevrolet&model=Bolt+EV&trim=LT&year=2017
This is a dealership in Escondido, California. As predicted by oilerlord here is a $6,500 off MSRP sale on 2017 Bolts. I called the dealership and they said it apply's to sales as well as leases. The tricky part of leases is the turn in ceremony and not knowing what excessive wear and tear charges will be added.

The fine print says...

OFFER INCLUDES DISCOUNT BELOW MSRP AND CASH ALLOWANCE. NOT AVAILABLE WITH SPECIAL FINANCING,LEASE OR OTHER OFFERS. MUST FINANCE WITH GM FINANCIAL. INCLUDES CALIF CLEAN AIR REBATE.

So the real discount is $4000 which has been widespread. They are claiming the $2500 as if an actual discount

Fine print or not they are offering the best deal I've managed to find lately. It was $245/month with nothing down. At least that was what was quoted to me (didn't go through with the lease). At least among So. Cal dealers I didn't manage to rustle up anything better. Rydell was asking $290 after tax. Community Chevy came back with an insane $386/month (not sure what the guy there was smoking).

Unfortunately, when I sat down in the Bolt LT I discovered the complaints about the seats weren't an exaggeration. The car had literally the most uncomfortable seats I've ever sat in before. Part of the problem might be that I'm tall, but there was almost no padding and the seat was pushing into the upper part of my back in an extremely displeasing way--the support just wasn't in the right place. I also tried a Premier and the seats were better--only mildly uncomfortable rather than bed of nails uncomfortable. :? Either way, I'm afraid I have to rule the Bolt out over this (200 mile range isn't much use if you don't think you'd even want to ride 20 miles in it).

If the 245 presumes that they, rather than you, keep the $2500 then it's really more like 316 (2500/35 = $71) which is NOT a great lease for an LT. We got a Premier, well equipped, 15000 miles, zero driveaway for $360 including sales tax ( about $328 before tax)

 

[DucRider]

If the 245 presumes that they, rather than you, keep the $2500 then it's really more like 316 (2500/35 = $71) which is NOT a great lease for an LT. We got a Premier, well equipped, 15000 miles, zero driveaway for $360 including sales tax ( about $328 before tax)

The lease price on the site is $169 for an LT.

 

[Nagorak]

I didn't get far enough in the process to verify for sure, but my impression wasn't that they would keep the $2500. The official deal is $169 + $1995 + tax/lic/etc. But with no down it went up to $240/month. I didn't get the feeling they were trying to pull any funny business.

Either way, I'm off the Bolt train for now. I'll hope the EV deduction survives and reassess next year. The seats were really bad for me, and I'd prefer not to have to go to the hassle of modding them. Meanwhile, GM is supposedly coming out with some more BEVs, so there may be more options available soon.

 

[michael]

If the 245 presumes that they, rather than you, keep the $2500 then it's really more like 316 (2500/35 = $71) which is NOT a great lease for an LT. We got a Premier, well equipped, 15000 miles, zero driveaway for $360 including sales tax ( about $328 before tax)

The lease price on the site is $169 for an LT.

Don't be naive

Here's from their web site


1Prices do not include additional fees and costs of closing, including government fees and taxes, any finance charges, any dealer documentation fees, any emissions testing fees or other fees. All prices, specifications and availability subject to qualifications and may change without notice. All discounts are after manufacturers discounts and do not include dealer installed options. See Dealer for details. Must purchase by 11/30/17. OFFER INCLUDES DISCOUNT BELOW MSRP AND CASH ALLOWANCE. NOT AVAILABLE WITH SPECIAL FINANCING,LEASE OR OTHER OFFERS. MUST FINANCE WITH GM FINANCIAL. INCLUDES CALIF CLEAN AIR REBATE.
22017 BOLT EV LT STOCK #172284 MSRP $ 38,705 36MO /10K $169 PER MO $19995 DUE AT SIGNING/ PLS TX AND LIC MUST HAVE


Do you see that? $19995 DUE AT SIGNING! It's a total non-offer. It's just a bait and switch to get you in to talk about the real offer .

 

[DucRider]

Do you see that? $19995 DUE AT SIGNING! It's a total non-offer. It's just a bait and switch to get you in to talk about the real offer .

I'm sure that's a typo and should be $1,995.

 

[michael]

Maybe, but that's the written offer so it's a non-offer. Now the buyer goes in to negotiate.

 

[rocstar]

Buying the car outright looks like it would be around $28500 (including sales tax and after the NYS rebate and $7500 federal tax credit). Is the right thing to do to subtract the total lease cost (let's say $11000) from that number, and then decide whether I think I could resell the car at 3 years for that price ($17500)? Or, close enough that I'd still feel good about it if I decided not to keep it longer?

These leases are not designed to make it appealing to buy the car. A $17,500 residual is a bit steep, so unless GMAC offers a discount you likely won't want to buy it. Still, if you treat cars gently, and want to know that a used Bolt's first owner was you, then it might be worth it for that reason alone.

Sorry, some of the context of my original post was missed when I quoted myself. The residual on the car is more like $22,500. The difference between out-of-pocket costs for buying versus leasing over 3 years was $17,500. So, *IF* I thought that I could sell the car for $17,500 after the 3 years, then buying would be equivalent than leasing, even if I did only want to keep the car for 3 years. It's hard to know what the actual resale value would be - if there are a bunch of $22-23K leases coming back, maybe $17.5K will seem like a deal! I don't know anything about used car markets, and obviously EVs are not the standard market. Everything depends on how the reliability and battery holds up (the 8 year warranty does help on that front), and what the cost and features of new cars are in 3 years. But I'm wondering if that's a reasonable way to think about it.

 

[michael]

Up until now, buying an EV has been a mistake. The cars are worth less than their residual, they are obsolete, and in most cases the battery is faded.

While it is possible that in the future the situation will normalize (particularly with the end of government price supports) and make buying more attractive, I have to go with history and lease.

 

[rocstar]

Well, I decided to pull the trigger - on a purchase, not a lease.

While it's easy to second-guess, my reasoning was:

• I can take the full tax credit now
• I didn't want the stress of worrying about some fine print I might have missed
• I don't like car shopping, and don't want to be "forced" to get a new car in 3 years if I don't have to
• The car's been out long enough and had enough reviews that major issues seem unlikely (though certainly not impossible - there are a lot of electronics, and it is still the 1st model year)
• The 8-year/100,000 mile battery warranty gives me some solace that the battery degradation/life expectancy will not be too bad
• If I really end up hating it for some reason, I can still sell it on my own (easier than selling/getting out of the lease) - though I would forgo some of the NYS rebate if it were sooner than 3 years
• I looked at the cars that are announced/expected to be on the market by the end of 2020, and don't see anything that looks like a major upgrade (I don't want an SUV)
• IF I do look at the market in 3 years and decide another car would suit me better, I think the chances are quite high that there would still be a decent market for a used Bolt - or I could give it to my parents.

I can totally understand why leasing would be the better option for many, if not most - but for me, I ultimately decided I would feel better buying. (Plus, GM Financial apparently couldn't figure out how to run a credit check using the temporary authorization code I gave them after temporarily lifting the freeze with credit companies - thanks, Equifax :x )

 

[winterescape]

Well, I decided to pull the trigger - on a purchase, not a lease.

Wow, Congratulations! you certainly did your homework in the lease VS buy decision and if it is a close call, it probably doesn't matter anyways, both good options.

Glad to hear that you picked one up, hope you enjoy yours as much as I enjoy my Bolt...