GM thinks Bolt will lose 70% value in 2 years with 20k miles

[joer00]

It's a few weeks ago now (before I got the M3 invite) that I went to the Chevy dealer to drive a Bolt to see if we maybe get it as a temporary solution. I will not comment on the driving experience (other than I absolutely do not understand Wozniak), just look at the crazy numbers when I asked the dealer for the shortest possible lease.

So the 24 month, 20k lease offer was 930 $ !! Let's do the math 930$ * 24 plus 7500 $ the lease company gets is roughly 30k. I did not count the interest, which is minimal, but nor did I count the down payment required. This is roughly 70% loss in two years after 20k miles, OUCH !

Looks to me like they know what happens if the M3 is available without any wait.

 

[Zythryn]

That is really warped logic.
First, leases are there to make the leasing company money. They have nothing to do with what the value of the vehicle will be.
It has more to do with playing it safe (from their point of view).

This is the same warped logic that Tesla detractors use. Please don't sensationalize.

 

[McRat]

2018 Bolt - $0 down, $0 security, $0 first payment, no GM Card, no dealer contribution, not counting state or utility credits, $413/m for 30,000 miles. I can get it a lot cheaper, but that's the most you would pay if you don't know what you are doing.

Model S stripper is $75k, so we will divide everything by 2 ($37,500) for the same 30,000 mile lease:

$3,300 at signing and $450 per month for a $37,500 car.

BTW to the OP, there is no Model 3 wait for you. Get one. Only new owners have to wait.

 

[Reciprocity]

Leases confuse me. We leased a mini van for my wife for 335/mo that had a retail price with taxes and all was about $34k and the lease payments add up to $12,060. I have one year left on the lease. Just looking at the value of the previous years model and they are selling for $15,000. I have no idea how Nissan is going to make money on this lease. That's about a $7k gap at a minimum.

I was looking at a lease for my second Tesla and they were going to raise the residual value by the Fed Tax credit amount so that I would be able to take advantage of it. The monthly lease payment was very nice, under $1,000. I decided I wanted to put tons of miles on it and I wanted to own it more then 3 years so I bought it for $1300/mo. I wanted the tax credit as well because of my high taxes that year. At the end of the day, after 3 years I will be under water even paying 30% more per month. How is the lease company, Tesla, not under water when the credit for residual is $7500 higher.

I usually think I am pretty good at basic math, but I dont get it. Leasing cars can be very good value. Nothing worse then buying a crappy ice vehicle and by the time you pay it off, it constantly needs fixes that cost more then the payments did.

 

[McRat]

Example: Rydell is not the cheapest, but they are really honest, no haggling. I can get a Bolt today for $32,478 x 7.75% tax = $34,995 - $1000 GMC, $10,450 gov't = $23,545 total price. Finance it yourself, it's about $1000/m for 2 years or $500 for 4 years or $250 for 8 years. But you get to keep the car.

 

[RobStark]

They have nothing to do with what the value of the vehicle will be.

Residual value has a lot to do with setting a lease payment.

Yes, the OP did not include profit margin for GM and Leasing company.

 

[Zythryn]

Residual value has a lot to do with setting a lease payment.

Yes, the OP did not include profit margin for GM and Leasing company.

Sure it does, but it isn’t the only component.
Leases can vary wildly depending upon many factors.
Some leases are subsidized, others are not.
I’ve seen 36 month leases that are subsidized and 24 month leases that are not.
Concluding GM believes the Bolt will lose 70% value because of the cost of the lease is groundless.
Would it also follow that you could determine what GM believes the value loss of the Bolt would be in three years, from a GM financial 3 year lease?

 

[RobStark]

Sure it does, but it isn’t the only component.
Leases can vary wildly depending upon many factors.
Some leases are subsidized, others are not.
I’ve seen 36 month leases that are subsidized and 24 month leases that are not.
Concluding GM believes the Bolt will lose 70% value because of the cost of the lease is groundless.
Would it also follow that you could determine what GM believes the value loss of the Bolt would be in three years, from a GM financial 3 year lease?

Subsidized lease is another form of discount and indicative of the car not being worth the MSRP.

Residual value is not an insignificant part of setting the monthly lease payment.

 

[number12]

The real question is why would anyone buy a bolt over a leaf?

I bought a 2017 Nissan Leaf for $32k sticker - $10k dealer discount - $7500 fed. = $14,5K

 

[jelloslug]

That is really warped logic.
First, leases are there to make the leasing company money. They have nothing to do with what the value of the vehicle will be.
It has more to do with playing it safe (from their point of view).

This is the same warped logic that Tesla detractors use. Please don't sensationalize.

You have no idea how a lease is calculated.

 

[bro1999]

OP obviously has zero clue about the inner workings of leases.

First off, GM does not even offer anything less than 36 months for Bolt (and Volt) leases. How you got quoted a 24 month lease is head scratching, if it's even true.

Second, ALL manufacturer leasing arms set the residual value of what they think the car will be worth after 24/36/48 months (and numbers in between). For a 36 month/10k miles Bolt lease, the residual value is currently 61% for an LT trim (60% for Premier). So GM expects that a $37.5k Bolt will be worth 61% of MSRP ($22.9k) after 3 years/30,000 miles of driving.

 

[bro1999]

The real question is why would anyone buy a bolt over a leaf?

I bought a 2017 Nissan Leaf for $32k sticker - $10k dealer discount - $7500 fed. = $14,5K

The REAL real question is why would anyone buy a 2017 Leaf period. Dirt cheap lease sure, but why anyone would buy a Gen 1 Leaf outright is puzzling with its non-existent battery cooling setup that will inevitably doom it to horrible degradation.

 

[number12]

The REAL real question is why would anyone buy a 2017 Leaf period. Dirt cheap lease sure, but why anyone would buy a Gen 1 Leaf outright is puzzling with its non-existent battery cooling setup that will inevitably doom it to horrible degradation.

Daily driver. Business expense. Literally makes me money a month in gas/tax savings. Gen 2 will not be the same deal. I can get one of those used once gen 3 is there if I want.

 

[Zythryn]

As shown above, the 36 month lease shows a much greater value after 3 years, than the OP’s calculations of a two year.
Knowing dealers, I would guess the OP was being fleeced.

Again, why use the residual value after two years to determine the true value after two years, while ignoring the 3 year lease?

 

[McRat]

The real question is why would anyone buy a bolt over a leaf?

I bought a 2017 Nissan Leaf for $32k sticker - $10k dealer discount - $7500 fed. = $14,5K

You can get a Fiat 500e for even less. Or an electric scooter. Or a pair of Nike shoes.

 

[ItsNotAboutTheMoney]

That's really high, but the lease deals on the 2018 are poor right now. The deals are on stripper 2017 LTs and some Volt LTs.

It's early in the year, so they can stick to sucker pricing for now.

 

[Uncle Paul]

Nissan leases are great deals right now. Pretty much the only way for them to sell their cars is with low price.

Few people aspire to own a Nissan. Lots of better vehicles out there. They provide little driving pleasure and are behind in the technological curve to Honda and Toyota.

They depreciate quickly, but the company subsidizes the residuals to move the vehicles off the lot.

 

[Evoforce]

Nissan Leaf, just don't do it, until/unless they quit making it as a disposable car by giving the battery a TMS. A cheap used one with a brand new replaced battery, maybe. You can use it as your disposable to get you to your next electric in a few years.

 

[Cheburashka]

It's a few weeks ago now (before I got the M3 invite) that I went to the Chevy dealer to drive a Bolt to see if we maybe get it as a temporary solution. I will not comment on the driving experience (other than I absolutely do not understand Wozniak), just look at the crazy numbers when I asked the dealer for the shortest possible lease.

So the 24 month, 20k lease offer was 930 $ !! Let's do the math 930$ * 24 plus 7500 $ the lease company gets is roughly 30k. I did not count the interest, which is minimal, but nor did I count the down payment required. This is roughly 70% loss in two years after 20k miles, OUCH !

Looks to me like they know what happens if the M3 is available without any wait.

Total misinformation and BS.

The dealer was trying to fleece you. You should have seen it. The residual is way higher than what you posted in your misleading thread title too.

Here are the numbers from Chevy for this month: February

A Bolt is $359/mo with no money down.

 

[Guy Mellick]

Dealers in Texas will lease (36 month) a New Bolt for under $300/month with $2500 down and 15,000 miles a year. Premier version a little more.