2018 Buick Encore Preferred $2449 OnePay drive-off ; 24 months 24K miles (Updated ..)

We bought 2018 Buick Encore Preferred 24 months 24K miles - its an exec demo with under 5K miles on it - never-titled/New, Full manufacturer warranty, and the standard 2-free services still applicable. We chose to do Full-Pay of $2449 (instead of approximate total of $2800 divided into 24 equal monthly payments; OnePay reduced Money Factor by some, saved about $250 on interest/rent-cost)

If you decide to go with high miles, 15K miles/year – Encore is one of the best ones to lease. Residual drops only by 1% (from 0.63 to 0.62); adds approximately $10 a month. We don’t drive much our second/third cars, so we chose 12K miles/year option (guess 10K/year is a bit too close for our comfort level)

We were told GAP insurance is included/built-in to the Buick leases, that is the good part.

Caution with OnePay/FullPay with GM/Buick: From what we were advised - Buick/GM’s financial may eat any remainder of OnePay amounts if there is a vehicle Total incident. Most of the other luxury car-makers return prorated amount based on remaining months upon such events., NOT thus so with GM/Buick – you ought to take chances. Given that our amount is such a small amount, good/defensive/safe driving, we chose to accept this minimal calculated risk, especially considering our great Insurance carrier/coverage.

If we went with non-exec demo, we expect to pay an additional $1250 more (guessing)

The following Lease Calculator numbers are slightly nudged to reflect as close to actual numbers.

Year, Make, Model, and Trim: [2018 Buick Encore preferred front drive, MSRP]
MSRP: [$25,395]

Selling Price: [$22,920] (about 10% discount) <-- we qualified for GM Supplier discount, you be surprised how many companies are eligible;
Rebates: $8000 [do not recall all rebates, we could definitely see about 5 of those discounts applied, no college/recent-grad discount though]
Trade-in: [$0]

Months: [24]
Annual Mileage: [12,000]

MF: .00098 <-- ball-park number to meet leasecalc (actual is 0.00079 believe), this came down from 0.00131 (?) due to OnePay
Residual: [.63] <-- if we were to chose 15K miles/year, its only 0.62 residual, not much drop – would add about $10/month …

Security Deposit: [$0] <-- we did OnePay
Drive-off: [$2449.00]
Monthly Payment (incl. tax): [$0] Onepay <-- OnePay drive-off $449.00

Sales Tax Rate: [6.25] <-- on Cap cost minus $8K rebates: $922

Leasehackr Score: [19 years] (based on zero drive off/monthly expected payments of $102/month; but we chose to do one-pay option instead, hence $2449)

Total Lease Cost: [$2449] (plus any Future disposition fees at the end)

This is at renowned family dealerships near Dallas Love Field airport. Great team of folks to work with including Ms. Vivian.

One word of wisdom - Do definitely check-out GM supplier discount program, many large companies, and most auto related companies should be eligible (may be your spouse, may be your School-district, may be some of the banks/credit-unions you may be member of). This saved about $400 total, about $18/month, not a great amount as such, but hey - when is the last time any of your buds paid your $400 party bill or two !?

In TX, the sales tax applies on adjusted Cap-Cost (ie: cap-cost minus rebates). this need to be paid in-full. GM doesn’t have enough Sales Tax credits to give away in TX, those Credits are saved for pushing the pricier Cadillacs! Worse yet, many of other luxury manufacturers waive Sales-Tax, if you go with OnePay lease. Also, Lexus cuts money-factors to near-zero (0.00001 or something), further reducing Total-Owed compared to the usual monthly payments lease. Buick/GM only reduced money factor some, I suppose 0.00050 reduction, but not-all-the-way-down to MF of 0.00001 like Lexus does (in-addition to Sales Tax credits/waiver by Lexus FS, seeet!)

FYI - for detail oriented folks: when we’ve take out Taxes/Fees and Interest/Rent-charges, only $538 was depreciation+lease costs on this 2 year 24K lease.


Why are you tagging Lexus for this deal? I removed it from your original post and you re-added it? :man_facepalming:

If you want people to know about LFS one-pay MF reduction, make another post dedicated to it. Doesn’t make sense to throw LFS info into a post about a Buick Encore deal.


Removed not-so-related tag. Thx

Great deal. You should have tried to waive the $650 lease fee for an additional .00075 and see if it saved money. It should have.


finally a great deal in Texas. will check this out.

If you are doing 3 year lease - the Encore’s finance rate MF gets better (which is unusual - usually longer the term, MF gets worse; odd in this Encore case) thus amortizing $650 over 36 months works our better (lesser MF on 3-years only make payments sweeter further).

On 24 months this tradeoff is a wash. Besides - which Finance director (in sane condition) signs papers with no depreciated cost (actual -$13 depreciation-cost ie, factory giving money-back to you to drive that vehicle!) and only with Rent-charges (plus taxes going to gubmint) being paid for!

Thanks for heads up.

I’m personally not a fan of one pay unless the savings are huge. Pretty sure gap insurance do not apply to one pay and in a total loss you’d just lose your entire payment.

$250 saving over two years on $2500 is only a 5% return per year.

Where do these false assumptions come from? GAP is included on ALL GM leases. You also get unused lease portion refunded if car is totaled.

thanks adamcar in pointing out the one-pay-lease’s return of prorated un-used portions of upfront-monies on GM/Buick leases. Think - also found additional GM’s GAP coverage material : http://www.gmc.com/content/dam/gmc/na/us/english/index/owners/protection/gap-coverage/02-pdfs/GMCGAPCoverageSampleContract.pdf

Also - good point by Fausterion - regarding its only 5% return. I do get 2% cash back on my credit card (I paid by full amount my cash-back credit card). Guess, it makes up additional savings - lets say push it all the way upto 6% savings - tell me who is going to offer 6% CD/bond rate :slight_smile:

Now - the fine/delicate dance between GAP insurance how much it covers vs how much remainder value of the vehicle is (short of what your own insurance pays off). To the best of my understanding GAP insurance carrier is fully paid-for by GM Financial (or auto in-house lending arm GM Financial etc), is not different from typical Arbitration clauses of late - guess whom the most of the Arbitration verdicts go in favor of ? The company side, or consumer side!? If you guessed only much-less than 1% verdicts go in favor of consumer - you was right!

Working with your own insurance is hard these days (in event of large/full losses), let alone working with GAP insurance guys (which owe their dues/respect/interest to/of the Lender, than YOU the consumer). Worse yet - now the two insurance Co.s on dueling match how to protect/minimize/deny their respective share of payments. We, as consumer stand much chance? Good luck with that ! Worse yet, there is Arbitration clause layered on-top !!

Just out of curiosity - are there any larger/independent studies done on how/how-well GAP covers, or how smooth (lol, rough!) such process is ? One of Google’s first hit starts off with “The origins of GAP insurance are a little murky—the product has existed for about 25 years” (and not much known about it since) https://www.casact.org/pubs/forum/11wforumpt2/Bowron_Kerper.pdf - go figure!

Like I said - we took calculated chance with OnePay, let alone with non-luxury manufacturer. I know incidents of BMWFS, Lexus FS, and MBFS make you Whole, by returning un-used month’s prorated amounts, in such GAP involving event. Not saying one manufacture in-house lender or their GAP is worse than any other - just the risk of un-known.

Now - if you are upside down on your lease (ie., traded-in previous upside-down car/lease etc, to roll in to current lease; or you expect Car’s depreciation curve significantly worse than whats computed in lease) - I would STAY-AWAY from OnePay murkiness though! In such cases, monthly payments stand better chance … imho.

Could you break down the 8000 rebate? Thanks

$2000 - XAA - GM Financial supported lease program
$900 - XAA - GM Financial Select market incremental CCR
$250 - VAB - Eligible GM Employee, dealership, exec referral, supplier programs
$750 - LKC - GM Select Market Incremental CCR program
$3000 - LTM - Buick/GM Conquest Program

This is $6900 so far.

I believe in the pricing of the vehicle itself for “GM Supplier Program” there is about $450 savings to be had (this is different from VAB code; the price of the vehicle itself reduces approx $450 due to Supplier pricing).

Not captured detail about $550 in additional discounts applied.

Lease document clearly does shows $8000 as rebate applied. If the finance team fudging “price savings” into Rebates ?? (Do not believe in TX the rebates are taxed separately) - or is it additional Flexcash like adamcar indicated … dunno.

If the dealership pulled-in some mysterious additional rebates, those are unbeknownst to me (or to many others LH’s here who didn’t list factory/GM-Financial rebates as high as $8000)


Are Texas taxes not lower on one pay’s?

The paint (white) - think its called “Summit White” does look good - guessing the paint application is well done - and looks deep (and rich) - rather than appearing pale/thinly-coated whites of some other brands.
Very small turning radius - getting in-and-out of parking sports very easy. Starting to warm-up to the Encore.

With included two maintenance services, the two-year lease is especially sweeter …

Ideally - a bit more horseys, lane-monitoring and/or emergency auto-braking (as standard), a tad bit more trunk space could make this vehicle a hit. But pricing would increase, I digress …

Can not go wrong with lease/pricing, not a bad mini-suv for growing families, youth or the new-car needy ones.


That’s not always true. The Captive can put the most attractive MF in the term they want you to lease it at. Not always, but it happens.

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The dealer could have used “flex cash” to round up the rebate number, but you still do not know for sure how much with no baseline!

Buick/GM doesn’t have sales-tax credits built-up/available in TX (yet in about 4-years of its ‘some’ starting in TX). Whatever little they have accrued, they are apparently using towards Caddy sales.

Did mention in original post (sorry if its elaborate) – no one-pay doesn’t reduce Sales tax in Texas, in itself (unless manufacturer/its-financing-Arm chose to apply their saved-up Sales-tax credits to your sale). Many luxury manufacturers with built-in financing arms, do have those credits, and chose to apply those credits selectively. Lexus appears most generous with one-pay leases (MF nearly zero; Full sales-tax credits/waiver applied), some other manufactures reduce MF, and offers about 5% sales-tax credits to cut down to 1.5%
(instead of 6.25% owed otherwise in TX)

Good info; but look at the lousy residual on 3-years or 39 months (leading to higher monthly payments than 24 months oft posted here on Encore). The manufacture/captive mostly make up for it one way or the other :slight_smile:

Interesting, then the LH calculator is wrong for me when calculating a lease and showing only a tax payment equal to 6.25% the cost of the lease (and not the entire car)

Electric - My mistake, had to do the “reverse” math, our tax was $922, at 6.25% tax rate, it worked out to be based on sale price of $14752 - NOT on the full cap-cost of vehicle (which was 22K or 23K).

So, the rebates do NOT appear to be taxed !! This is based on revere-engineering lease doc numbers - can’t speak for the actual Sales-tax law. Throwing in my observation based on lease-docs …


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Yes, AFAIK rebates are not taxed in TX