Considering giving up my lease to purchase

[Sesamecrunch]

I'm loving my Spark EV so much that I'm putting way more miles than my lease will allow. I'm also very confident in the car after 4 months of ownership, so I think I will buy one outright. With the 8 year, 150K mile warranty that comes in California, I think the post-incentive prices of $19K is well worth it.

I am thinking of just letting someone assume the lease payments of $237 per month, for the remaining 32 months. I put $2500 down, but got that back in CA credit. Does that sound like a fair deal?

Is anyone here interested in assuming that lease on a Granite 2LT trim? 5,300 miles on it. Got the HOV stickers. Like new shape. I'm in the SF Bay Area.

 

[NomadMac]

I'm loving my Spark EV so much that I'm putting way more miles than my lease will allow. I'm also very confident in the car after 4 months of ownership, so I think I will buy one outright. With the 8 year, 150K mile warranty that comes in California, I think the post-incentive prices of $19K is well worth it.

I am thinking of just letting someone assume the lease payments of $237 per month, for the remaining 32 months. I put $2500 down, but got that back in CA credit. Does that sound like a fair deal?

Is anyone here interested in assuming that lease on a Granite 2LT trim? 5,300 miles on it. Got the HOV stickers. Like new shape. I'm in the SF Bay Area.

Keep the lease and pay the overage. Depreciation, battery and range degradation, and technology advances over the next three years will bite you in the end. After the lease is done, there may be a Tesla in your future.

The quote I got with the same down, out the door, was substantially less. Sorry to rain on your parade.

 

[markcmann]

I'm loving my Spark EV so much that I'm putting way more miles than my lease will allow. I'm also very confident in the car after 4 months of ownership, so I think I will buy one outright. With the 8 year, 150K mile warranty that comes in California, I think the post-incentive prices of $19K is well worth it.

I am thinking of just letting someone assume the lease payments of $237 per month, for the remaining 32 months. I put $2500 down, but got that back in CA credit. Does that sound like a fair deal?

Is anyone here interested in assuming that lease on a Granite 2LT trim? 5,300 miles on it. Got the HOV stickers. Like new shape. I'm in the SF Bay Area.

Don't forget that in order to keep the $2500 California rebate you must have ownership of the car for 36 months otherwise you are required to return it (I believe at a pro-rated amount). Check the website for details.

 

[iletric]

See if you can change the lease to 15,000 miles per year (250 bucks per month).

 

[Sesamecrunch]

Don't forget that in order to keep the $2500 California rebate you must have ownership of the car for 36 months otherwise you are required to return it (I believe at a pro-rated amount). Check the website for details.

Oooh, that's a compelling argument. Thanks, I'll look in to it.

 

[Sesamecrunch]

Keep the lease and pay the overage. Depreciation, battery and range degradation, and technology advances over the next three years will bite you in the end.

These were the reasons I leased in the first place. But now, knowing much more about the car and about actual user experiences with long term EV usage, and with the 8 year/150,000 mile warranty on California cars, I think $18K is a better deal than the lease.

The quote I got with the same down, out the door, was substantially less. Sorry to rain on your parade.

Eh. Glad you got a better deal. But honestly, with all the benefits of this BEV along with my solar panels, I don't sweat $10 or $20 a month difference in the lease terms. I was just darn glad to get one of these fantastic cars.

 

[Oberon]

But honestly, with all the benefits of this BEV along with my solar panels, I don't sweat $10 or $20 a month difference in the lease terms. I was just darn glad to get one of these fantastic cars.

+1000.

 

[GeorgeChevy]

You can just buy out the lease at the end for the contracted residual price regardless of your mileage or any damage-that's the beauty of a lease! I would just keep driving and not worry about it till then!

 

[fengshui]

You can just buy out the lease at the end for the contracted residual price regardless of your mileage or any damage-that's the beauty of a lease! I would just keep driving and not worry about it till then!

Jeffrey, can you break down the costs for this on the standard Chevy Lease? Last time I looked at those numbers, the lease residual didn't reflect the federal tax credit that the Lessor got.

 

[GeorgeChevy]

It depends on the bank you finance with, Ally and GM Financial do not give you the federal rebate but US Bank adds it back to the residual to lower your payment (so it's the reverse of a cap cost reduction but the effect is the same). However, all banks give $3575 lease cash this month as a cap cost reduction, so you are getting some money but not all of it in the case of Ally and GM Financial but you're getting more from US Bank.

When you exceed mileage on a lease or damage the car but you buy the car at lease end, you don't incur extra charges, you just pay the contracted residual value that was set at the beginning of the lease. You only pay charges if you return the car at lease end. This is true for all closed-end leases.

Assuming you do qualify for the full $7500 federal tax credit, it would be cheaper to just buy the car outright in the beginning vs leasing and buying at lease end. However, you get to take advantage of a low interest rate with the lease, and you have the option to just return the car at lease end.

This is my personal opinion but I would rather pay mileage overage than buy the car outright, as I can calculate exactly how much I would owe versus the unknown of resale value in the future (with extra mileage vs other off lease Spark EVs). However, I also have a 2nd car so I can just drive that if I am going over on mileage.

I can see a purchase making sense if you are going to drive it to the end of its usable life but otherwise the lease is just more cost effective and gives more options for most people.

 

[Sesamecrunch]

Thanks for the info, Jeffrey. I do have US Bank, so maybe a purchase at the end of the lease is feasible.

I do plan on driving until end of life, so purchase makes better sense in retrospect.

 

[fengshui]

It depends on the bank you finance with, Ally and GM Financial do not give you the federal rebate but US Bank adds it back to the residual to lower your payment (so it's the reverse of a cap cost reduction but the effect is the same). However, all banks give $3575 lease cash this month as a cap cost reduction, so you are getting some money but not all of it in the case of Ally and GM Financial but you're getting more from US Bank.

Thanks. I was afraid that these leases didn't allow for the owner to reclaim much of the $7500 credit when the purchase option was taken. That certainly makes returning the car the obvious choice for most lessees.

 

[nozferatu]

I'm loving my Spark EV so much that I'm putting way more miles than my lease will allow. I'm also very confident in the car after 4 months of ownership, so I think I will buy one outright. With the 8 year, 150K mile warranty that comes in California, I think the post-incentive prices of $19K is well worth it.

I am thinking of just letting someone assume the lease payments of $237 per month, for the remaining 32 months. I put $2500 down, but got that back in CA credit. Does that sound like a fair deal?

Is anyone here interested in assuming that lease on a Granite 2LT trim? 5,300 miles on it. Got the HOV stickers. Like new shape. I'm in the SF Bay Area.

Just curious...how's the overall quality shaping up? Any squeaks, rattles, etc? I'm interested to know because my Fiat 500 Sport...after 18 months...has a few squeaks and rattles.

Cheers

 

[Sesamecrunch]

I'm loving my Spark EV so much that I'm putting way more miles than my lease will allow. I'm also very confident in the car after 4 months of ownership, so I think I will buy one outright. With the 8 year, 150K mile warranty that comes in California, I think the post-incentive prices of $19K is well worth it.

I am thinking of just letting someone assume the lease payments of $237 per month, for the remaining 32 months. I put $2500 down, but got that back in CA credit. Does that sound like a fair deal?

Is anyone here interested in assuming that lease on a Granite 2LT trim? 5,300 miles on it. Got the HOV stickers. Like new shape. I'm in the SF Bay Area.

Just curious...how's the overall quality shaping up? Any squeaks, rattles, etc? I'm interested to know because my Fiat 500 Sport...after 18 months...has a few squeaks and rattles.

Cheers

No problems whatsoever. Still love driving the car.

 

[nozferatu]

No problems whatsoever. Still love driving the car.

Awesome...how about charging issues? Times?

 

[Sesamecrunch]

No problems whatsoever. Still love driving the car.

Awesome...how about charging issues? Times?

No charging issues. I have a Bosch 240v charger at home, courtesy of the $500 rebate from Chevy. Friend installed it for peanuts. Charge times are as reported, 7 plus hours with 240v. I've used ChargePoint a few times on the road with no problems.

I commute 72 miles with lots of hills in SF Bay Area. Get 4.8 miles per kWh, give or take .2 miles.

 

[nozferatu]

No problems whatsoever. Still love driving the car.

Awesome...how about charging issues? Times?

No charging issues. I have a Bosch 240v charger at home, courtesy of the $500 rebate from Chevy. Friend installed it for peanuts. Charge times are as reported, 7 plus hours with 240v. I've used ChargePoint a few times on the road with no problems.

I commute 72 miles with lots of hills in SF Bay Area. Get 4.8 miles per kWh, give or take .2 miles.

That's awesome to hear. I'm really tempted. I have to say though my Fiat has grown on me...lol..it's a very characterful car. Almost feel guilty wanting to get rid of it...strange isn't it?

 

[StevesWeb]

I can see a purchase making sense if you are going to drive it to the end of its usable life but otherwise the lease is just more cost effective and gives more options for most people.

We tend to keep cars for a while, I went shopping for my EV in a 2005 Prius that we bought new in 2004. We also like unencumbered ownership, which is why we bought our 78 solar panels and our Spark EV outright.

Personally, I consider leasing unwise, so I don't do it.

 

[sparkyps]

However, you get to take advantage of a low interest rate with the lease, and you have the option to just return the car at lease end.

This is my personal opinion but I would rather pay mileage overage than buy the car outright, as I can calculate exactly how much I would owe versus the unknown of resale value in the future (with extra mileage vs other off lease Spark EVs). However, I also have a 2nd car so I can just drive that if I am going over on mileage.

I can see a purchase making sense if you are going to drive it to the end of its usable life but otherwise the lease is just more cost effective and gives more options for most people.

There is nothing "more cost effective" about a lease. You can get very low interest rates on a purchase as well, and your interest rate isn't convoluted to figure out as it is with a lease. The residual value is generally computed conservatively so people who turn in their car at the end of the lease end up losing out on the excess of vehicle value to residual value, that's not cost effective.

The uncertain resale value of EVs, particularly when you are really competing with new - $7500 tax credit is the primary reason to lease instead of purchase.

 

[nozferatu]

However, you get to take advantage of a low interest rate with the lease, and you have the option to just return the car at lease end.

This is my personal opinion but I would rather pay mileage overage than buy the car outright, as I can calculate exactly how much I would owe versus the unknown of resale value in the future (with extra mileage vs other off lease Spark EVs). However, I also have a 2nd car so I can just drive that if I am going over on mileage.

I can see a purchase making sense if you are going to drive it to the end of its usable life but otherwise the lease is just more cost effective and gives more options for most people.

There is nothing "more cost effective" about a lease. You can get very low interest rates on a purchase as well, and your interest rate isn't convoluted to figure out as it is with a lease. The residual value is generally computed conservatively so people who turn in their car at the end of the lease end up losing out on the excess of vehicle value to residual value, that's not cost effective.

The uncertain resale value of EVs, particularly when you are really competing with new - $7500 tax credit is the primary reason to lease instead of purchase.

Now that I have the Spark EV, I'm very glad I leased. I know this technology is getting better and I don't want to be stuck with a 100 mile range car when in 3 years it'll be 130 miles or more. Much of the savings of owning a car long term is psychological. When you factor in wear and tear, reduction in efficiency over time, repairs, etc...the differences are not as great as everyone makes it out to be.