Lease or Buy?

Discuss here where you plan on buying a Volt, good and bad dealers as well as how to get rebates and incentives for the Volt!
frede
Posts: 15
Joined: Sat Jul 31, 2010 2:49 pm

Lease or Buy?

Postby frede » Sat Jul 31, 2010 3:40 pm

Just curious if others are leasing or buying? At $2500 down and $350/mo( (plus sales tax, so in California it would be more like $380/mo), it comes to $15k for 3 years, which is about the same $5k/yr that my Jeep Grand Cherokee has cost me over the 12 years I've owned it, including purchase cost plus maintenance. Don't have to decide on lease or buy until you drive the car off the lot, so there is plenty of time to decide. Pros and Cons to leasing over buying:

Pro: there will be alot more electric cars to choose from in 3 yrs, so get a chance to trade up to something better, including the 2014 Volt which will I'm sure have plenty of improvements over the intro model (including the ability to drive it in the carpool lane in California).
Pro: trade up to a new Volt in 3 years. The new Volt will likely have a lot of improvements including the ability to drive it in the carpool lane (intro Volt doesn't qualify for California emissions apparently).
Pro: don't have to part with $45k in one fell swoop at purchase time
Con: the intro Volt could become a collectors item!
Con: have to keep mileage under 12,000/yr otherwise have to pay a big premium per mile over. Similarly have to worry about wear and tear to the interior/exterior.

Probably more that I'm not thinking of, I've never leased a car.

PatrickZWang
Site Admin
Posts: 108
Joined: Sun Jul 11, 2010 9:48 pm

Re: Lease or Buy?

Postby PatrickZWang » Sat Jul 31, 2010 7:09 pm

I've also never leased a car, buy i suspect the biggest thing that will make or break whether I do a lease is the "Lease to Buy" Terms. What premium do I have to pay at the end of the lease?

Ultimately, Buying the Car outright has the initial cash outlay, but if you believe that the car will retain it's value like GM thinks it will, it should be a wash to lease or buy.

However - there must be some "risk premium" built into the lease.

If the buyout terms on the lease are bullet proof, I'd hop on it right away. But I'm also ready to go either way on this one.

Patrick

foxnegaunee
Posts: 9
Joined: Thu Mar 24, 2011 9:33 am

Re: Lease or Buy?

Postby foxnegaunee » Thu Mar 24, 2011 11:45 am

Hey! I work at a chevy dealership in MI. The lease on this is incredible as far as the whole "DEAL" goes. Considering a 40K vehicle would be 700-800 payment. Did You get one yet??!

hodad66
Posts: 5
Joined: Fri Sep 30, 2011 12:01 pm
Location: Indialantic, FL
Contact:

Re: Lease or Buy?

Postby hodad66 » Fri Sep 30, 2011 12:25 pm

the new "deal" is $399 for thew base 2012 Volt.... I took it!

Victor
Posts: 24
Joined: Thu May 12, 2011 2:22 am

Re: Lease or Buy?

Postby Victor » Tue Oct 04, 2011 3:30 am

I did the lease. As it stands now, I am going over my miles, and I do regret leasing this car. I wish I had just bought it.

Within the first year of ownership, (before next June) I am going to look at my options of buying it out at the end, or trading the car in on a purchase. I will have to wait until supply is greater than demand in hopes of a good deal.

Congrats on the 2012!

Vic

OregonDuck
Posts: 1
Joined: Sat Oct 22, 2011 7:20 am

Re: Lease or Buy?

Postby OregonDuck » Sat Oct 22, 2011 7:28 am

I have a lease vs buy question not related to the pricing. I think the 399 plan is a good deal (although with options it's more) and with the dealing of the 75000 at US bank it benefits me

My issue is I prefer to buy but I have real concerns of the car value in 2-3 years. They don't seem to be flying off the lot right now, they are expensive in comparison to alternatives. I am assuming battery technology in 3+ years would make the "new" Volt and competitors a 70 plus mile EV.

Would I be correct that USBank and Ally feel this car is worth $17500 (base model) in 36. Months ? given that, does it not seem that a lease is the smarter way to go ?

Joule Thief
Posts: 8
Joined: Fri Sep 30, 2011 12:20 pm
Location: Santa Cruz, CA

Re: Lease or Buy?

Postby Joule Thief » Sun Oct 23, 2011 10:10 am

OregonDuck wrote:I have a lease vs buy question not related to the pricing. I think the 399 plan is a good deal (although with options it's more) and with the dealing of the 75000 at US bank it benefits me

My issue is I prefer to buy but I have real concerns of the car value in 2-3 years. They don't seem to be flying off the lot right now, they are expensive in comparison to alternatives. I am assuming battery technology in 3+ years would make the "new" Volt and competitors a 70 plus mile EV.

Would I be correct that USBank and Ally feel this car is worth $17500 (base model) in 36. Months ? given that, does it not seem that a lease is the smarter way to go ?


KBB has the Volt resale value at $17k after 36mos, about 42% of the $41k MSRP. If you factor in the $7.5k subsidy, then you pay $33.5k for a base model and retain 51% of the value in 36mos. The Prius retains 46% for comparison. However you choose to look at it, the Volt is predicted to hold its value about as well as any other car - which isn't very well.

The KBB number is just a guess since the Volt is brand new. Other factors such as cost of gas and electricity as well as competition from new BEVs and PHEVs (including next gen Volts) will greatly affect the Volt's resale value.

Cars are simply not good investments which is why resale value honestly does not factor that much into my buying decision. Ultimately, I buy a car that I like and will enjoy driving for several years based on reasons that matter to me. I intend to keep my Volt for much longer than 3yrs (at least 6) at which point the resale value will be nilch. But if you think you'll want a different car in 3yrs than the lease may be a better option for you.

After having my Volt for a week now, I can say hands down this is the best vehicle I've ever owned. It's amazing to drive, packed full of tech, the Bose sound system is phenomenal, and I love the smooth tourqy feel of the silent electric motor in L mode that you simply don't get with an ICE. Almost never having to stop at gas stations is nice too :D In a sense, I think it's this "experience" that I'm paying for while I own the vehicle that matters, not so much what its worth when its over.

Regarding whether or not Volts are "flying off the lots", don't be surprised when you go to get one if the dealers in your area don't have any and/or charinging $5k or more over MSRP. The demand is greater than supply at the moment, but its getting better now that GM is cranking them out again. They shut down the Volt plant for a month in July to re-tool it for increased capacity. Now they are building at a clip of 650/wk or so and approaching 10k.
MY12 Volt C-5274
Viridian Joule Blk Leather
08/24/2011 (1100) Order placed at dealership.
10/16/2011 (6000) Vehicle delivered to customer or dealer has completed customer paperwork.

Vincesy
Posts: 4
Joined: Sun Nov 20, 2011 10:07 am
Location: Bay Area, CA

Re: Lease or Buy?

Postby Vincesy » Wed Aug 01, 2012 2:49 pm

This is my first lease at $290/ mo ($315 with taxes) with $2500 down for a fully loaded (HOV) 2012 model with Viridian Joule but no Nav.
No one knows what the battery will be like 3 years from now or what batteries will cost.
With a lease, GM is taking the risk. If cost of batteries do not drop or if gas prices go up, you can always recalculate if the residual makes sense.
The lease costs less than what I pay for gas right now and since theoretically I can do my daily commute on EV, the car is basically free.
I also don't have to worry about depreciation or maintenance of an ICE car.

Leasing also takes the worry out of the $7500 federal credit. You still get the benefit but the leasing company claims it on your behalf.
CA clean air rebate still applies for 3 year leases.

If this works out as it should, I'm not going back to an ICE car.

To do list:
1. Install 240V charger at home
2. sell my Mercedes E class.

soxfanben
Posts: 2
Joined: Mon Aug 13, 2012 1:55 pm

Re: Lease or Buy?

Postby soxfanben » Mon Aug 13, 2012 2:06 pm

I am in my 2nd month of a lease on a base 2012 Volt. Very glad I leased. I love the car and I will either buy it at the end or lease/buy another one, but with the rapid changes in technology (especially the capacity of the battery) I don't want to be the one taking the risk on the resale value. For example, GM thinks they may have a breakthrough that would dramatically increase battery capacity within 2 to 4 years:

http://www.mlive.com/auto/index.ssf/201 ... c_car.html

I think the smart move right now is a 2 or 3 year lease and put all the money you save on gas in a savings account so you can buy a 2014-2015...

Ben
Chicago

simscottsim
Posts: 2
Joined: Thu Aug 23, 2012 11:13 am

Re: Lease or Buy?

Postby simscottsim » Thu Aug 23, 2012 11:21 am

Greets,

First post here....big fan of EV's and PHEV's. Selected a lease on a 2013 Volt as the most viable option...got an incredible deal from the Ukiah dealership. Pick up car tomorrow...I will be active on this forum.

Scott

In a previous life: http://www.smilingdogsranch.com/priusblog


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