# Two approaches to lease structures (2017 Chevy Volt numbers)

Hello Hackrs!

So I’m trying to lease for the first time and it’s been incredibly fun learning. I’m now in dialogue with a dealership on a Chevy Volt (thanks Anthony for the response, will get final numbers from ya before I execute on anything). I shot out my numbers and received a quote that works out like this:

Sales tax is 8% & 50% residual for reference

MSRP - \$35,235
Sales price - \$31,735
Incentives - \$7,860
sub upfront fees - \$1,556 (acquisition, doc, dmv, tax on cap cost & doc., misc.?) + first months (\$260.95)
net cap cost - \$25,691.95
residual - \$17,618
depreciation payment = \$8,073.95 plus lease payment \$25,431 + \$17,618 = 43309.95*0.00040 = \$17.32 or \$623.66
\$8,073.95 + \$623.66 = \$8,697.61 * 1.08 = 9,393.42 / 36 = \$260.92 per month
With the disposition fee waived.

Those were the dealerships numbers presented and I worked out the maths.

Now I’m confused because the first month’s payment \$260.95 is included in the upfront along with the tax on cap cost reduction \$614.60 + \$80 doc + \$260 dmv fee + \$6.40 tax on doc fee + 595 acquisition fee which the dealership shows as lowering my total cap reductions from \$7,860 in incentives to \$6,042.64 therefore increasing my net cap cost and creating higher interest payments. But also I’m stuck in a circular logic crash here, if I’m already paying the first months payment upfront wouldn’t there be only 35 payments remaining requiring an adjustment on sum payments?

How I presented it to the dealership was like this:

MSRP - \$35,235
Sales price - \$31,735
Incentives - \$7,860
Acquisition fee - \$595
net cap cost - \$24,470
depreciation payment = \$6,852 plus lease payment \$24,470 + \$17,618 = 42088*0.00040 = \$16.84 or \$606.07
\$6,852 + \$606.07 = \$7,458.07 * 1.08 = 8054.71 / 36 = \$223.74
Add in tax on cap cost reduction & doc fee (\$7,860 + \$80) = \$635.20, add doc fee \$80, add DMW fee \$260 = 975.20 / 36 = \$27.09 + \$223.74 = \$250.83 x 36 = \$9,029

That’s a \$360 delta over the term between the two approaches… this being my first time leasing, I believe I may have it wrong but I can’t seem to get past the circular logic in the dealer presentation.

Can you break out the incentives you are receiving? Assuming you are in CA, there is \$6,860 lease cash available, so it looks like you are getting an extra \$1k from somewhere…online private offer?

On the surface, that looks like a solid deal. I got similar numbers to the \$260 dealer figure, btw. Push to have them waive the first month’s payment. The national lease offer includes waiving the first payment.

That’s right, \$6,860 lease cash plus \$1,000 online private offer.

Here’s the a different dealer’s offer, different car (no Bose or comfort package)

MSRP 34 155
Selling Price before rebates - 30487
Rebates based on your information and manifest list - \$7860
I came up with toal drives at \$1387.58
there is a Elec Filing fee and waste tire disposal fee just to start but we are happy to break it all down for you
If we roll the Drives into the payment and you do 12k a year 36 month (you are right the money factor is .0004 and the residual is 50% on that lease through GM) I come up with \$243.96 after taxes in OC
and you can have any color that you want at that msrp we have like 8 white at that price.
I am sure you know, you seem to know a lot, I am selling the car at \$3000 Under invoice and the holdback is only \$998.40.
This is the deal​ we are propared to do for you, but with no rate markup and no aftermarkets it is as far as we will go.
If you want to let me know,​ we are happy to do the calculations with you but we are not going more than 2002 \$ in the black on a 2017 car.​

Send me a email if you ever have any questions.

Give me a call (408) 464-6499 OR paul.duran@dgdg.com

Paul Duran
Capitol Chevrolet
Internet Fleet Manager
905 Capitol Expressway Auto Mall
San Jose, California
95136
408 464-6499
paul.duran@dgdg.com

Hi everyone,

To give some resolution to this thread I ended up leasing a Volt from Simpson Chevrolet in Garden Grove (Gilbert Fierros is a great sales contact to work with).

Here is a picture of the lease agreement

The amount due at leasing signing or delivery was \$8,360. All in all \$240.02 per month for 35 payments (first payment was paid for, unsure if that’s a GM incentive or dealership’s) zero out of pocket from us, so we’ll be getting a bill in the mail in one or two months from GM. If California releases additional green tax credits that’d be another \$1,500 or \$40 off per month. All in all I’m very happy with the car and thrilled with the dealership especially coming off of that horrible experience with Cerritos Kia. The Volt is white with leather and comfort pack (heated seats & steering wheel). I’ll be using the car for work and for that it’s a fantastic car, I really dig the whole left paddle regen braking setup. I would have a hard time between purchasing this LT with leather at \$20,600 (few more rebates on finance/purchase) or a Prius Two at \$22,700. I imagine the Toyota would hold its value better in the long run but I really like the Chevy, and that it leases relatively well, I think it’s a slam dunk.

MSRP on the car is \$35,455. I used \$1,000 private offer from Chevy website, the \$6,860 lease cash and that’s it, The rest was dealership discount. Based on 50% residual value for 36 mo/12k year with 0.00040 MF.

Thanks all!

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