I’m coming off a loaded 2020 Silverado Trail Boss lease ($475/mo ending in January) and have loved the truck so was going to just buy out the lease ($35k buyout). But after doing the math and seeing how much the monthly payment would be double with the high interest rates I figured it was time to go back to work to see what was doable on a new Trail Boss lease.
Utah market is silly for trucks and I quickly learned dealers still have the upper hand at the moment as inventory is still slim.
A dealer in Boise had a ZR2 with a 7% discounted posted on their website so I quickly hit them up Thursday evening. Ran a quick buyout estimate online with Carmax ($41k offer) and texted the dealer the screenshot and they countered at $40k. Researched the available incentives, ran the calculator and shot them this offer and drove 11hrs round trip to pick it up yesterday.
All things considered thanks to the horrendous interest rate times we’re in & the magical Matrix lease equity I had I’m stoked to only be paying $120 more a month for a $20k more upgraded truck.
Year, Make, Model, and Trim: 2023 Chevrolet Silverado ZR2
MSRP: $74,670
Sale Price: $69,170 (7.3% off)
Monthly Payment: $595
Drive-Off Amount: $3450 (acq, taxes & fees, first mo payment)
Lease Equity: $4600
Months: 36
Annual Mileage: 10k
MF: .00180
Residual: 64%
Incentives: $1500 Loyalty, $1000 Costco, $500 chevy red tag
Region: Utah/Idaho
Leasehackr Score: 8.2
$722/mo with the equity included for a $74k car. A lot of people are paying a lot more for the same or even less MSRP, so really this isn’t the worst imo, and it’s a sharp looking truck. Congrats!
You can put the equity down on a finance if you want to.
Is the equity fairly valued?
Ofc the monthly payments are going to be higher to finance the buyout. You are paying for ownership. You’ll own the equity. It’s like comparing renting a house to buying it.
You don’t compare monthlies. You compare TCO against TCO.
I know, like I said I was getting $722 with just the equity included, I wasn’t counting the rest since there was no CCR, but yeah, I get it, technically $802.
Does money just magically not exist if fees are paid upfront instead of capitalized? What is the point of just ignoring thousands of dollars of the cost?
It’s just a different way of looking at the payment. I’m not saying it doesn’t exist, but taxes just are what they are, everyone has to pay them. Obviously it’s part of the total cost of the lease but I was mainly curious at seeing how much his equity was lowering the payment by. That’s all. I am obviously fully aware that the money exists.
My bad, didn’t realize the equity is considered part of DAS.
Either way yeah it’s an expensive truck, if I was looking for a cheap lease this would probably have been another Frontier post.
The point of my post was to hopefully shed light to those on the full size truck hunt of what discounts/incentives are attainable for a truck that in a lot of markets is still selling over msrp.
Obviously my equity situation is unique but like I mentioned in my original post being able to upgrade for a very minimal monthly increase and be at 1.07% is a W.
I thought that was a great price for the car.
I also thought dealers are charging markups on this thing… I really am wrong… It was a healthy discount. Congrats!
If your car is stolen or totaled… no bad mojo intended any DAS is dust in the wind and not covered by insurance of any kind that I am aware of.
Additionally, if you are using large DAS to further reduce pay
Ent to “ afford” car majoritiy you, me, anyone should not be on that deprecating asset. Put it in a greater mortgage or investment account.
Last round of I bonds yielded a guaranteed 10%
Gross oversimplification. For CCRs, exposure decreases every month through the term of the lease, until it’s $0 in the final month, and also depends on the sufficiency of the insurance payout.
The ceiling for this is laughably low. Do you just stop caring about returns on everything else after you max out your ~$10k in iBonds for the year?
Max out? What are you talking about. Making the amount you can invest? 10% is 10%. Amortize that GUARANTEED $ over twenty years.
If it’s your last 10k it’s still better than a massive DP on a lease.
How did FTX work out for you?
