Chevy Lease Terms

[1ch4b0d]

Thought I'd pass along the official dealer flyer. I'm not sure I'm supposed to have it, so I've tried to remove any identifying info from it.

I hope it is useful!

I've been to a few dealers, and it's become quite clear that dealers aren't bound to offer these terms, but it may be helpful anyway to see how the official leases are broken down.

These terms change every few weeks, and it never hurts to ask a dealer if you can get a copy of the current one.

Good luck!!!

 

[EVlearner]

Great find!

Interesting that the 7500 credit not shown in column 1 and 3. Looks like you can take it off the residual if you decide to purchase at end of lease, as in example column 2....

 

[1ch4b0d]

I forgot to mention that - I actually called in to ask about the "credit" term for the US Bank lease, and the answer was "yes", you do have to return the credit if you purchase at the end, so the really the effective residual is the sum of the "credit" line and the "residual" line for the US Bank lease, or $17123.25.

 

[EeveeDriver]

Capitol Chevrolet, San Jose does NOT offer these lease terms. They said they cannot make any profit on these lease deals.

 

[fengshui]

I forgot to mention that - I actually called in to ask about the "credit" term for the US Bank lease, and the answer was "yes", you do have to return the credit if you purchase at the end, so the really the effective residual is the sum of the "credit" line and the "residual" line for the US Bank lease, or $17123.25.

My US Bank lease has the credit included in the residual, so they do it differently sometimes.

Does anyone know why you have to return/pay the credit? They've gotten the $7500 from the feds. Why do we need to pay it as well?

 

[switters]

What do the tiers refer to?

And where is the money factor?

I'm new to leases!

 

[TonyWilliams]

Guys, the $7500 federal tax credit is to the OWNER of the vehicle. Nobody "pays it back" unless they're stupid enough to actually hand somebody the money.

If you purchase the car, you are the OWNER, so when you file your taxes, also file form 8936 to get the credit, up to $7500 depending on your individual tax situation.

If you lease the car, the leasing company is the OWNER and they keep the $7500. This is generally offered as a capitalization reduction, however only the US Bank deal offers that. The other company, Ally and GM financial are taking the $7500 and keeping it.

This is a "scam" that Toyota was doing to their CARB-ZEV compliance car, the Rav4 EV, until this summer. Needless to say, few people leased one (unless they didn't know any better).

Another scam from these dealers is selling you a used car with only a few miles on it so that they claim and keep ALL the tax credits /rebates and you get none.


http://www.irs.gov/uac/Form-8936,-Qualified-Plug-in-Electric-Drive-Motor-Vehicle-Credit

 

[TonyWilliams]

What do the tiers refer to?

And where is the money factor?

I'm new to leases!

The tiers have to do with your credit worthiness. The better your credit, the better your deal on financing.

The money factor is the interest rate; just multiply it by 2400.

 

[switters]

What do the tiers refer to?

And where is the money factor?

I'm new to leases!

The tiers have to do with your credit worthiness. The better your credit, the better your deal on financing.

The money factor is the interest rate; just multiply it by 2400.

I understand that you can calculate the interest rate by multiplying the money factor by 2400. Or get the money factor by dividing the interest rate by 2400. But I don't see the interest rate or money factor listed?

Also, now that it's November, anyone know whether this deal is still available?

 

[GeorgeChevy]

switters: The new lease program for November is a little bit different than the one posted for October, with lower residual and higher money factor but also more lease cash. However the payments are still pretty similar.

 

[fengshui]

switters: The new lease program for November is a little bit different than the one posted for October, with lower residual and higher money factor but also more lease cash. However the payments are still pretty similar.

Care to post the flyer?

 

[GeorgeChevy]

Care to post the flyer?

Here you go, US Bank is still the way to go. Again, bear in mind this is not including sales tax.

 

[dutyfree]

Care to post the flyer?

Here you go, US Bank is still the way to go. Again, bear in mind this is not including sales tax.

This is a good lease deal for an EV, and very close to what I got at George Chevy.

 

[SittingBull]

I read that a 'closed end' lease, where you can't buy the car at the end, is a rental agreement in the eyes of the law, but an 'open-ended' lease, where buying is an option at the end, is actually a purchase agreement, making the lessee the 'owner' from day 1 of the lease. You should be able to file the tax credit form, but only include what you've paid that year as a credit. The credit, like solar credits, can be rolled over into future years, I think there is also a limit of two vehicles per person, so you'd get "up to" 30% or $7500 which ever is less, for each car, and you'd deduct credits from taxable income as you pay.

So the US Bank lease would allow that? And the other two lease plans would not, because they (the leasing companies) have already claimed the tax credit? How can that be? There can only be one owner?

These are the kinds of questions (and many more technical questions) that I asked and no one knew about. I asked "where does the $7500 tax credit go when you lease?", and Diamond Hills Chev said, " Take the US Bank offer and you'll get the $7500 if you buy the car at lease end". Then they substituted another lease without that option two hours before I showed up for the car, saying the US Bank lease terms were no longer available. That was one of the lies. Beautiful car, neanderthal dealer. During that two month or so period, I tried to access various Chevrolet and GM customer service/support/questions chat rooms and telephone numbers. I got really wrong information continually. 1-855-477-2754 is a number given to me by a GM support service one Saturday. The fellow said to me," We don't have any technical information, nor can we send or receive email, but you can call this number Monday morning, 9 to 5 EST, it's a special number just for Spark EV owners with technical questions". Perturbed that I had to wait 36 hours, I called first thing Monday and was told that the Spark EV would only charge on 110V level I chargers, period. Wow.

 

[xylhim]

I got a quote from one dealer from US bank that said the residual was only ~$10000 after three years, with a $199 per month lease by going with US bank. I have a feeling that this was incorrect information, but if true would represent that US bank was taking the federal credit and applying it to the balance of the vehicle cost and not gobbling it up.

 

[gatedad]

Sitting Bull:
The car definitely can charge on Level II 240V. Probably what you were being told was that there is no Level III/QC option on most of the Spark EV's out there(not yet anyway) and that there will not be many opportunities to actually charge at Level III even if you do purchase one with the SAE standard QC option(due to the fact that there are barely a few Level III SAE units available in the country). Unless your "Wow" was exasperation that the Chevy people were so uninformed and did not even know that the Spark EV can Level II charge...

Lou

 

[GeorgeChevy]

I read that a 'closed end' lease, where you can't buy the car at the end, is a rental agreement in the eyes of the law, but an 'open-ended' lease, where buying is an option at the end, is actually a purchase agreement, making the lessee the 'owner' from day 1 of the lease. You should be able to file the tax credit form, but only include what you've paid that year as a credit. The credit, like solar credits, can be rolled over into future years, I think there is also a limit of two vehicles per person, so you'd get "up to" 30% or $7500 which ever is less, for each car, and you'd deduct credits from taxable income as you pay.

So the US Bank lease would allow that? And the other two lease plans would not, because they (the leasing companies) have already claimed the tax credit? How can that be? There can only be one owner?

These are the kinds of questions (and many more technical questions) that I asked and no one knew about. I asked "where does the $7500 tax credit go when you lease?", and Diamond Hills Chev said, " Take the US Bank offer and you'll get the $7500 if you buy the car at lease end". Then they substituted another lease without that option two hours before I showed up for the car, saying the US Bank lease terms were no longer available. That was one of the lies. Beautiful car, neanderthal dealer. During that two month or so period, I tried to access various Chevrolet and GM customer service/support/questions chat rooms and telephone numbers. I got really wrong information continually. 1-855-477-2754 is a number given to me by a GM support service one Saturday. The fellow said to me," We don't have any technical information, nor can we send or receive email, but you can call this number Monday morning, 9 to 5 EST, it's a special number just for Spark EV owners with technical questions". Perturbed that I had to wait 36 hours, I called first thing Monday and was told that the Spark EV would only charge on 110V level I chargers, period. Wow.

I got a quote from one dealer from US bank that said the residual was only ~$10000 after three years, with a $199 per month lease by going with US bank. I have a feeling that this was incorrect information, but if true would represent that US bank was taking the federal credit and applying it to the balance of the vehicle cost and not gobbling it up.

If you lease through US Bank, they are going to take the tax credit, so you won't be able to apply for it for your federal taxes. However, they take the full amount ($7500) and apply it to the residual value of the car, which you can see from the picture I posted previously. It actually works out better as you will take advantage of the full amount, whereas not everybody owes $7500 on their federal taxes.

 

[xylhim]

Yes but it's the contract residual value that must be paid if you were to buy at the end of the leasing period, correct? It seems as though (after reading: http://gm-volt.com/forum/showthread.php?6438-US-Bank-Lease-7500-Tax-Rebate-and-Residual-Value-Questions) that US bank is actually keeping the 7500 in order to make payments low, but you won't actually recieve the benefit of a reduced price once it's time to buy.


So the question is then, if Ally and GM aren't taking the credit, can you then apply for the credit after the lease is over? I'm guessing not since it would be considered a used car at that time. This is also assuming that in three years there will still be any kind of credit even left for EVs.

 

[GeorgeChevy]

Yes but it's the contract residual value that must be paid if you were to buy at the end of the leasing period, correct? It seems as though (after reading: http://gm-volt.com/forum/showthread.php?6438-US-Bank-Lease-7500-Tax-Rebate-and-Residual-Value-Questions) that US bank is actually keeping the 7500 in order to make payments low, but you won't actually recieve the benefit of a reduced price once it's time to buy.


So the question is then, if Ally and GM aren't taking the credit, can you then apply for the credit after the lease is over? I'm guessing not since it would be considered a used car at that time. This is also assuming that in three years there will still be any kind of credit even left for EVs.

That's correct, you wouldn't be able to apply for the credit after the lease expiration and you buy out. The reason is only the original registered owner of the vehicle can take the credit. Even if the original owner didn't apply for the credit, the second owner can't apply for it. When you're leasing, you are not the registered owner, the bank is, so you can't take the credit afterwards.

This article from Edmunds explains it pretty well: http://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html

 

[GeorgeChevy]

Just FYI for those of you that are still looking to lease, the lease terms are unchanged for this month, and the terms are good till Jan 2.