Eww, that’s almost 2% of the monthly payment, nowhere close to a fruitful lease…
Btw the latest poster likely got a quote using GM Financial numbers, however Ally Financial has a very different set of numbers.
Also, there are big discounts to be had on these cars. My local has so many they don’t know what to do with them all. They started by offering $10k off without any negotiation. They may well have been 2016 models but as I understand there is not much between the 2016 and 2017.
Corvette leases ALWAYS suck. For two reasons
- Residuals BLOWs
- Money factor with no mechanism for MSDs BLOWS
Will
Can you expand on what you mean about 2% of the monthly payment? Also are Ally bank lease rates better than GM? Do you know those numbers?
Also this lease is a business write off…its a lease for a board member. So it makes sense in terms of the deduction on the lease payments.
It never makes sense to overpay for anything.
True True- but it’s a Corvette. Pricing is not always a deal killer when it comes to a true sports car.[quote=“jonahmils7, post:17, topic:7326”]
Will
Can you expand on what you mean about 2% of the monthly payment? Also are Ally bank lease rates better than GM? Do you know those numbers?
Also this lease is a business write off…its a lease for a board member. So it makes sense in terms of the deduction on the lease payments.
[/quote]
@jonahmiles7 I believe he is talking about how one calculates the best lease deal- generally the rule of thumb for monthly lease payments should equate to 1% or less of the sales price . @willwar14 is saying that the corvette lease payments are at 2% per month of the car’s price which surpasses by double the 1% formula.
When it comes to business write off- I would highly recommend you talk to a tax adviser or an accountant- there are options that can help you determine a better tax incentive- take MB for example - they have lease, financing, and balloon financing .
Cool thanks. That makes sense from an individual level. Corporate tax rates @ 34% tho - take the deduction and that’s over $15K in tax savings over the term - not to mention the earning potential of that $15K invested. So the true cost to the business is about $28K plus the buy out at the end. So it’s not exactly overpaying - however I do agree from an individual level I would never lease a corvette. From the business standpoint if you’re comparing it to the loan - this is much better deal.
Another way to look at it is it wouldn’t be 1197 a month cause you’re saving 15K over the term. The payment is closer to $780 with the tax savings
I’m glad you find my advice helpful. Due to a conflict of interest with my job in the finance field- I will refrain from answering specific pricing/tax questions. Thanks for understanding. In regards to how you’re going to report - I highly highly highly recommend you go to a tax adviser/accountant, I cannot stress that enough. Good luck!
@aeljizi Please follow forum rules for requesting RV, MF, etc. information. Ask the Hackrs is not the right place to post this question. Thank you and welcome to the LH community. Please refer to:
How can the same rule of thumb apply to sedans and compacts (low demand), SUVs and crossovers (high demand), and sports cars (luxury item)?
Not sure my friend. The 1% rule was created by either the forum or its members- it is based off of the more popular leases.
A monthly payment of 1% of MSRP indicates a hackr score of 8.33 (100 months divided by 12). It is just a general gauge to judge if you would be better of buying or leasing the same vehicle. It has nothing to do with demand. Some vehicles lease better and some vehicles purchase better. That is my opinion, anyway.
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I feel like, the vette is selling at a really great price now, especially with the Grand Sport just coming out. A local dealer here is advertising $8500 off of MSRP for a Z51, so figure much more is achievable…It might lease poorly, but it buys well!
Hey guys, I’m new to site and leasing… I was looking at a vette recently … MSRP 63k… $3500 down, 7.5 miles a year 3 yrs and the payment was at $780… lowest I’ve found but still high… any tips? Should I just finance? Thanks fellas… really appreciate any help…
What is the MSRP, Selling price, MF and state taxes?
63k MSRP
58k selling price
MF?
MF is the Money factor (Interest rate) of the Lease.
I would push for a bigger discount, in LA they are hanging around like a bad smell on the dealer lots.
Likewise in my neck of the woods. Made too many.
Check Kerbeck Chevy’s advertised pricing - I believe they are highest volume Corvette dealer in the country and that will give you an idea of how low your dealer can go.
Once again the issue with leasing a corvette is the Residual, the MF, and the lack of an option to put down MSDs to reduce the MF. Not the discount off MSRP
Jaguar coupes lease much better because their Residuals are much better than the rest. The selling price to lease payment are bad with vettes, sucks because the current gen is great. Get your 10-13% off MSRP and then get low financing through a credit union. PURCHASE MAKES MORE SENSE HERE…