do we get 2 cars? only way this makes any sense to me…
RV is not negotiable. It is set by the bank. RVs on the same car can change from month to month and RVs can vary based on the trim of the car.
I assume that less trim has higher RV because those trims depreciate the most.
Another weird thing is that dealer gave me two different APR for 2018 and 2019 both new cars.
For 2018 it is around %2.49 and for 2019 is $10.49.
How is it possible? do not they use the same source to lend money?
It’s not consistent that all lower trims have higher RVs, but that is definitely the trend based off everything I’ve seen.
They may be using the same source to lend money but that doesn’t mean the APR has to be the same - it makes perfect sense that the APR would be higher on the new model year.
Well I guess I put hold on my corvette hunting until end of year. Maybe better deals.
1 Like
I think his question is a good one though…why would the residual be set lower than the real residual? As I have been following this forum, I’ve been thinking all of the cars that are “bad” leases should be great 3 year old purchases since most of the reason why they are “bad” leases is because of low RV%. What is the motivation to set RV at 55% if true RV is 65%? Curious to see communities thoughts.
Because setting residuals is not simple math. What about when banks set them high and market value drops and banks lose money? I dont understand this guy saying give me a 3 year old one at 33k because that is residual today. How do you know that was residual 3 years ago set by GMF? Also, why would dealer give it to you for cheaper than market value?
Of course it’s not simple math but they should have well paid accutuary teams devoted to getting that right. I could see them being off a point or point and a half but not 8-10 points. Also I understand that you may inflate the residual to move leases, but what would be the logic to artificially suppress residuals?
I also agree that today’s residual is not relevant to buying a 3 year old car…you’d want to know what the residual values were 3 years ago when the car was leased originally
I was reading Corvette Forum market place last night. Thousands of adds.
You can never find anything less than %65 residual value. And they sell it in few days.
So for sure the RV is way below the market.
People saying below 35k you can find salvage title only.
And I agree about your argument about bank not risking it. There is no guarantee that for example Volvo does not depreciate a lot but still they put high RV for that. How come they risk it on those cases then? They are not stupid people. Tons of statistical data. For sure that value for corvette does not make any sense.
I think it is more than that! GM just do not want to lease corvette easily. But I do not know why. That is stupid that RV is %10 lower than market. I can get %2-3 but not 10.
I read in corvette forum also that some dealers were giving %25 off MSRP last year and it went to $43k for new base model. And people were selling old C7 corvette higher than new price or comparable price.
I think GM corvette leasing center needs a good clean up. Either they do not know what they are doing or there are some secrete policies that we do not know.
You’re entire argument is ridiculous. Residual Value calculations aren’t an exact science. Banks calculate (guesstimate) the RV in a way that helps them minimize their risk of being upside down on the vehicle when it is given back to them at lease end. If a borrower is lucky enough to have positive equity in the vehicle, that’s money in their pocket if they realize it. Otherwise its profit in the lenders pocket. What role did you play in the transaction that makes you think you’re entitled to it?
And from where do banks get their information to calculate RV?
Few years trend shows that for base corvette, market price after lease is more than %65. You can argue that nothing is predicted in market and it can be changed anytime. But that can be the case for any vehicle.
I am getting quote for 2015 base models around 42-45k while end of last year dealers gave huge discount on new models for purchase to get it for 45k. That is ridiculous.
There is no way to get a good deal. People tell you that corvette lease sucks because of low RV and big depreciation. And you say fine I go and get a 3 yeas old model with the hope of huge depreciation and still price are high. Your argument makes sense when I see low price for old corvettes.
If 3 years old corvette price was like Alpha romeo models that someone shared today and showed huge depreciation even after 8k miles I would buy your argument. My whole point of argument is that corvette is popular and will have a good market price after leasing, there is not too much risk for banks.
I believe I’ve seen no money down lease deals on corvette forum at 459 a month but don’t quote me on that.
My suggestion would be to contact a corvette forum c7 s3ction for sale by dealer and see what comes back…
Good luck
If you’re really interested in how residual values are calculated, Google is your friend. There are plenty of good deals to be had on Corvettes, they just require patience and timing. A few months back there were 2017s, 2018s, and 2019s on dealer lots. That seemed to be the perfect storm for getting steep markdowns on the 17s. I almost purchased a 17 Stingray in April for $43k that was marked down from $58k, but I decided I really want a Grand Sport.
Sorry for thread hijack!
1 Like
Yeah I think purchase is the best option.
I have time and no rush. So can wait for a good deal.
Please let me know if you see one of those 43k sweet deals again.