NJ - is this a good deal for the lease? I’ve never leased before and have read almost too much information at this point. The lease option got an additional $5k lease cash. I’ll make 3 lease payments. My credit union will treat the loan like a new auto loan and I’ll have a 4% rate. I know I will have to pay a $300 lease buyout fee and possibly some double tax but not enough to wipe out the whole $5k extra.
2025 EV6 GT Line
This is for a 24 month / 10k miles. Thanks for all the help.
It’s not exactly free optionality because you lose the ability to get a “new car” loan and an APR lower than a used car loan (when you wait until the end of the lease).
But yeah I’d check out prices of used EV6 GT, MME GT, etc before going through with this
True, but practically the APR difference is not usually substantial. OTOH, the ability to just return the car is basically a put option. Giving that up early on is also foregoing some value. All-in-all, people who understand these details are not asking questions like this haha.
Why do you want to own this EV rather than give it back in 2 years? You risk further residual value risk by buying it. Just look at what happened to used Tesla values when Musk dropped MSRP on Teslas. I suspect Hyundai/Kia will eventually do the same on these EVs. They already have to offer huge rebates to move them after lowering MSRPS.
This is the answer. From a dollars and cents perspective, you need to be saving thousand of dollars to give up that option.
Say you get in a bad accident but the car isn’t totaled, you turn in the car and aren’t stuck with the diminished value. New EV tech in next two years increases the already severe depreciation of EVs- turn in car and walk away. The car has mechanical issues but can’t be lemoned - turn it in and walk away.
And if non of these occur and you love the car, buy it out in two years.
These and what everyone else said are all really great points. I guess I got so in my head about more cash incentive this way. It’s why I asked to become informed!
I’ve actually decided to look at used EVs because the pricing is just so much better.
Yes, resale value risk as the RV is fixed at contract signing. I like the Put option analogy. The only time a lessee is ahead is when the value of the car is below RV at the end of the lease. That means they paid less than they should have to use the vehicle. Many think they are ahead at the end of a lease when the market value of the vehicle exceeds the RV. In reality they simply overpaid for the use of the vehicle and are getting some of that expense back. It is a nice little bonus at the end of the lease.
