Last post on Nov 14, 2013 at 12:00 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Chevrolet Volt, Car Buying, Car Leasing, Sedan
#368 of 482 Dealers complicating the residual value of the Volt
Aug 11, 2013 (9:52 pm)
Since 2007, I have been a follower of yours and have so far bagged 2 great lease deals over time (2007 VW Beetle Conv. and 2011 BMW X5 Diesel). You Rock! I am back again in the market, this time for a 2013 Chevrolet Volt, with an MSRP of 44,945. I am in the San Francisco Bay Area.
The best price I got is $4,588 dealer rebate + $5,020 factory rebate + $1,000 lease conquest rebate (since I still have the BMW lease) for a selling price of $34,337. The residual is 56% on a 10K/36 lease and the rate is 0.85%. That's a good sized cut (2014s are here in only 2 weeks and they are $5K cheaper, some dealers are sitting on huge 2013 inventories). The lease factors match with what you said on your latest post on this subject. All good.
But another dealer is offering a 59% residual (but less rebate on a different, but close enough configuration) and told me that the residual is actually 42% + $7,500 federal rebate (which works out to 59% for that particular car) which means the lower the MSRP is, the higher the effective residual will be. That makes sense.
Yet another dealer, who also told me the same 42% + $7,500 story about residuals gave me a quote with a residual value of close to 56% for an MSRP of $45,605. When questioned, he told me that there was a 'cap' of $43,800 on how much they could 'residualize' and that anything over that I had to pay out of pocket and that's what brings the effective residual down. It doesn't sound very clear (the numbers he gave me did not really add up to that explanation) and I haven't been able to cross check this.
Would you please share your thoughts on this? From what you told me 6 years back on this forum, 'Residual values are essentially set in stone and dealers really do not have the ability to alter them'.
#369 of 482 Re: Dealers complicating the residual value of the Volt [apudiyap]
Aug 13, 2013 (7:12 pm)
Ajeer - From what I'm reading earlier in this thread - See Post #275 - that residual max is true.
What may be set in stone for regular cars, may not hold true here. The numbers with these hybrid/electric-/pug-in cars is all a game to get inventory to move.
There is a good chance the dealer who originally quoted may have looked it over and would have been brought up during the final paperwork.
#370 of 482 Re: Dealers complicating the residual value of the Volt [mung35]
Aug 13, 2013 (11:02 pm)
Thanks mung35 for the reference to #275. So the residual cap was not totally made up!
According to that post, the residual on 10K/36 is 44 + 1 = 45%. At the 43,800 cap, residual = 43,800 X 0.45 + $7,500 = $27,210.
I have one dealer website here advertising $26,772 residual on a $43,950 MSRP on a 10K/36. That is 44% of $43,800 plus $7,500. So may be residual value dropped by 1% since #275 was posted?! Could be.
But on the $44,945 car that I looked at, the effective residual percentage should then be $27,210 / $44,945 = 60.5%. So why the 56% or the 59% that I have been hearing? Looks like the heavier dealer discount is coming at the expense of lowering the residual. Bad dealers!
#371 of 482 Re: Dealers complicating the residual value of the Volt [apudiyap]
Aug 15, 2013 (8:33 am)
Based on those numbers, it looks like your Volt lease would be $0 down and payment in the mid $200's?
Also, anyone have residual and MF for 24-month leases?
#372 of 482 Re: Dealers complicating the residual value of the Volt [mung35]
Aug 15, 2013 (1:56 pm)
Their advertised offer is $259/month with $2,499 drive off for $43,950 MSRP for 10K/36.
#373 of 482 Re: Dealers complicating the residual value of the Volt [apudiyap]
Aug 16, 2013 (2:16 pm)
Your incentives should get you in that payment neighborhood with $0 down, right?
Negotiated Price: 34337
Term: 36 mos.
Residual: ~58.6% = (42%= 18877) + 7500 = $26376
With no additional cap cost adjustments (pay fees and first month on acqusition), you should be able to get $222 + rent charge $21 for a total payment of ~$243
That seems like the best deal I've seen on here thus far - or am I missing something?
#374 of 482 Re: Dealers complicating the residual value of the Volt [mung35]
Aug 16, 2013 (3:27 pm)
This is what you are missing: The dealer who is offering a $4,500 dealer rebate (which brings the negotiated price to $34,337) uses a residual of 56%. The dealer who uses a residual of 42% + $7,500 (for an effective residual of close to 59%) gives only a $3,000 dealer rebate. So either way, the payments are in the upper 200's... This is why I wanted to know the truth about residual on the Volt.
$2,499 drive off includes about $400 of cap reduction, about $700 of taxes (they tax the $5020 GM rebate, and it still looks high to me. Sales tax rate here is 8.75%. Does anyone know if this is how it should be?), about $400 DMV fees, about $600 lease acquisition fee, about $300 first month payment and about $100 documentation fee.
Aug 19, 2013 (2:21 pm)
I will be watching your success.....
I had hoped to lease another Volt, but this one with Nav and the safety package 2 for the mid-200 range with no money down.
#376 of 482 I pulled the Trigger!
Aug 20, 2013 (2:31 pm)
Pulled the trigger on Sunday. Got a slightly better deal (with a some what different deal structure) from the dealer close to my home for an identical car (but with a dealer added $60 cargo net). I think the deal is one of the best I have seen so far.
2013 Chevrolet Volt
Premium White Diamond Tricoat
Premium Trim Package
Enhanced Safety Package 1
Enhanced Safety Package 2
Chevrolet® MyLinkTM radio with navigation
Premium Bose® Energy Efficient Series sound system
Cargo net (Dealer-installed)
Total Due at signing: $2,799 (includes $650 California sales tax, which may not apply to you).
Monthly: $239 + tax 8.75% = ~ 260/month
(I'll post the detailed break down if anyone is interested)
California is processing my application for $1,500 rebate and an HOV sticker. So that will bring my effective payment down to $218/month. That's like $199/month + tax on a $45K car! Or $239 + tax with only $1,299 total due at signing (of which $650 would still be California sales tax. Talk about chasing your own tail. Lol!). Not bad whichever way you look at it!
We took $20K off the MSRP! $5K negotiated savings, $5K GM rebate, $1K GM Lease Conquest rebate, $7500 federal rebate, and $1500 California rebate.
At only $25K, this is cheaper than a gas car with leather seats, leather steering, heated driver and front passenger seats, 7 inch touch screen, navigation, onstar, 7 speaker Bose audio, satellite radio, bluetooth (pair upto 5 devices), on board Pandora, gas prices finder and other apps, USB storage port, auto dimming mirrors, rear view camera, keyless entry, push button start, smartphone vehicle monitoring and control app with navigation input from phone, front and back parking sensors, *active* cruise control, lane departure warning etc.
I have been thrilled at how this car drives. This is a fun car. It doesn't drive, it wafts! I'll save my electric rants for a different forum. But I'll just say this car is American ingenuity at work! At this price, its a no brainer!
#377 of 482 Re: I pulled the Trigger! [apudiyap]
Aug 20, 2013 (4:00 pm)
Hi apudiyap ,
can you please send me the break down to skalties at gmail dot com , I want to pull the trigger tomorrow .