Does anyone here have experience leasing a car through ally bank? Are still able to get manufacturer incentives?
They have some info here: https://www.ally.com/auto/personal/
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Most (not all) rebates will require you to go through manufacturer’s financing.
I leased two vehicles through Ally, I am under impression that it was maybe still is a financing arm for GM, maybe I am wrong. Since the leases were made in 2014 I don’t recall how they were structured, but I am pretty sure I would not lease the vehicles unless I got all possible incentives. Unless there is manufacturer lease specific incentive I don’t see a reason for Ally not to apply all incentives.
Don’t you qualify for purchase incentives when you use an outside financier?
From the OEM and dealer perspective it’s an outright sale since they have no continuing interest in the car anymore.
@max_g Every incentive is unique. Some are only offered to lease deals through the captive, some only to non-captives (IDL) and others are open to any lease.
In terms of lease cash, it really depends on the OEM and their partnership with the lender. I have seen some incentive programs where the captive contributes 50% but most are much less than that. Sometimes it is rolled into the risk sharing agreement between the OEM and captive. Other times it is handled individually.
The OEM incentive planners have to divide a monthly budget into various buckets to try and maximize the sales volume. Each part of the country has a different appetite for leasing so the incentive structures in each market are customized by people in those regional offices. They usually take a national program and tweak it within some bounds to fit their interpretation of the demand in their area.
A lender like Ally was born out of the ashes of GMAC which was GM’s captive. So for a long time there was a close connection with GM. Now they are the captive for Mitsubishi and Aston Martin. They are also competing against US Bank and the credit unions for the lease volume on many makes and models that falls to non-captives due to minimal captive incentive support.
Thank you for sharing!
So the captive is a subsidiary of the OEM?
I just leased a Volt and maybe in the market for another one sometime in July/Augus. If I lease a second Volt I’d prefer to lease it through the company that is willing and able to negotiate the residual at the end of lease. I think one guy here negotiated close to $10k off his residual to buy the car from US Bank.
What would you advise, go Into next deal already knowing what leasing company I want, if yes which one? If not, how should I talk to the dealer? I don’t want to tell them upfront that I am planing on trying to negotiate the residual at the end of my lease.
Thanks!
There is no negotiation of the residual when you are leasing a vehicle. If you are in a vehicle that experiences extreme depreciation, some lenders will work with customers towards the end of the term to negotiate a reduced RV so they reduce their losses on it. It is a rare case and only a handful of lenders are set up in their technology to do negotiated purchase prices. I know US Bank has done them on some models in the past and NMAC (Nissan’s captive) did a big program on the first batches of Leafs that were looking to be $10-15k losses about 12 months before termination.
But if you are going to lease a vehicle, the RV is non-negotiable. The MF is only negotiable if you are not given the lowest rate. You will most likely not know if you are getting the lowest rate unless you compare on this forum against another lease contract in the same region in the same sales month on the same vehicle and with the same lender. Your only real ticket to drop your monthly payment is to pick a model that has some incentives in your area and then to negotiate as hard as possible on the agreed upon purchase price of the vehicle. And you can start by picking a model that has a decent RV and low MF to begin with.
Thank you RVguy, that’s exactly what I was talking about. How do I find out who are those handful of lenders that sometimes are willing to drop the RV at the end?
I shall explain my logic here perhaps.
I am almost at the max number of electric or plugin vehicles I can lease or purchase using California clean vehicle rebates.
I feel that so far one and only Volt I ever leased has a possibility of becoming a “buy at the term end” vehicle. If there is no way I can negotiate with current lease holder ACAR Leasing. I may try leasing my next Volt with another company, like US Bank.
Would that make sense?
Thanks,
You are wasting your time. The only lender that offers a competitive payment on Volt is GM Financial because they are contractually obligated to lease all GM models. GM pays GM Financial for any RV support above a certain threshold To cover additional RV losses. This likely comes out of an incentive budget to support a sales target.
Other lenders may have programs on the Volt but they aren’t setting strong RVs on it because they aren’t supported with a risk sharing agreement with the OEM like GM Financial is. Gas prices are low and aren’t expected to rise dramatically so the future outlook on hybrid demand (and used prices) is not favorable so lenders aren’t willing to take gambles on them and risk big losses.
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Thank you for your response.
So if I want to buy my Volt at the end of the term, am I better off just asking the dealer if they want to buy and resell it to me or need to go to auction to see how much it will sell for?
The RV is likely well above true market value (wholesale at auction) so the dealer won’t buy it out at the RV either. You turn in the vehicle at the end of your lease (known as grounding the vehicle) at the dealer you bought it at and it will go up for sale on GM Financial’s online portal for all GM franchised dealers to bid on it. That dealer can buy it there and then sell it to you for a healthy profit and still be below what the original RV was. Or if it doesn’t sell there it will get transported to physical auction and run until it sells. The lender takes the loss on the vehicle for whatever the difference was between the contract RV and the auction price minus and fees and transportation costs.
Thank you again RVguy!
That’s exactly what I wanted to know. Not that I must have the vehicle I drive now, but nice to have it as an option.
i am also curious about ALLY, about to put a credit app in on Aston Martin lease takeover. Anyone know how the process will compare to the other big players like MB and BMW? I heard they’re strict in comparison.
I don’t know how they would be on a Aston Martin i just used Ally on my lease at the end of last month easy as can be.
I was just told today by Ally that since they terminated their leasing relationship with Aston Martin, they no longer allow lease transfers of Aston Martins. Trying to get an extra level of confirmation on this from Aston Martin directly.
Aston’s new leasing partner, Chase bank, does not allow lease transfers at all.
Doesn’t matter what Aston Martin says. If Ally, the funder of the loan, says they won’t transfer, Aston Martin has no say.
Have you ever heard of something like this happening before? Seems very bait and switch-y to allow for lease transfers. Until the relationship between the two companies is terminated. Going to have to read through my contract to see if this kind of behavior is mentioned or explicitly allowed.
I escalated this at Ally and they called back and confirmed that they were in error – new ally leases with Aston Martins don’t allow transfers, but with their new exclusive relationship with Chase, I think they were effectively saying that Ally doesn’t do leasing with Aston anymore.
My existing Aston lease does allow lease transfers.