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

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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.

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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.

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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.

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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.

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Could you break down the 8000 rebate? Thanks

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$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)

Thanks

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Are Texas taxes not lower on one pay’s?

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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.

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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!

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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)

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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:

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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)

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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 …

Thanks

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Yes, AFAIK rebates are not taxed in TX

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Well they tax the whole car, right? I’m guessing that would be double dipping if they did that.

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Edited prior post to make the correction you pointed out regarding rebates NOT taxed in TX. Thanks

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Agree. But TX double/multi dips leases in different ways:
You pay tax on full Cap cost (minus rebates), rather than on monthly payments or the depreciated cost
You pay sales tax again, if you buy the vehicle at the lease end
And worse yet, if you sell your vehicle to individual party - that buyer pays sales tax
This gets interesting further - if you traded-in your leased/in-lease vehicle, you do NOT get tax-savings on trade-in price !!

Haven’t heard with certainty - if you do swap your lease to somebody else out of state, or other way around, you assume lease of somebody else from out-of-state., what would happen - do you (or swapper) owe taxes again – not clear !!

Think - there are multiple other gotcha’s regarding leases in TX, especially, if you want to swap-out or swap-in leases in-and-out of TX state. No wonder we hear rough stories on the net with no concrete evidence, nor human readable interpretation without legalese (tried to read law, looks quite vague infact, but I ain’t no lawyer/tax-expert)

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Actually, you do get tax credit on the residual or value of the vehicle when trading in. So yes, going in you will get hosed at least once, but it mitigates the tax liability on your next purchase or lease.

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Certain 99% NO on that on leases in TX. Would love to see some document of such trade-in, or the law (with lease that is; we are not talking about fully owned car).
Multiple times it was made clear by multiple dealership that: no tax-credit on traded-in value for leased vehicles when trading-in (In TX)