eurostyle

Saw this on MSN Autos
•Retail price: $51,000
•Residual percentage: 55.7 percent
•Expected value after 3 years: $28,407

gthal

What car, what options? What do you think is right or wrong? Residuals are guesses at best... is this a GM lease or something else?

eurostyle

This is a C7 base car and 51K is just about right. After 3 years only worth 28K? I guess, I have to wait 36 months to get me a C7.

TOVetteFan

In Canada, residual for 36 month lease allowing 20,000 kms/year is 57%

Glenmcp

Seems like 55% is too much of a drop (assuming good condition) for a three year old. My 07 sold in 13 for a drop of 40%.

eurostyle

55% seems too much. Regarding my 07 sold in 2012 with 89.000 miles, I did better than you. Got back 52%.

gthal

You will almost always get less on residual estimates. GM uses very conservative residuals because they are on the hook for them later. You will often get much higher actual values on a private sale or even a trade-in depending on market conditions at the time.

Don't forget, a residual is what GM is agreeing to effectively buy the vehicle back for in 3 years. It will get resold... therefore, the residual will always be a low estimate and very, very often less than what you can actually sell the car for.

Zymurgy

Ally was offering a 39 mo lease with a 64% residual.

~Stingray

$600 is not bad at all.

LimeRay

Only 5K miles annually, that's a $1.60/mi if you factor in down payment, can only average 416 miles a month.

Zymurgy

My 2006 C6 has 37,350 miles after 93 months = 401.6 miles per month and it's my daily driver!

///ADMAN

I do 5K in 90 days.

v26278

Shop around, If you don't like the lease rate, purchase it outright and take the re-sale value risk yourself. Leasing companies are essentially writing futures contracts on used cars. Only time will tell if the residual is "right", no one knows now. I've always believed leasing companies know more than me about residuals, and are making money on the lease so therefor I save by buying the car myself. The only exception would be for a "fleet" car that the leasing company can buy up front for a lot less money than I can, or if the manufacturer is subsidizing the lease rate to drive sales. I don't think either case applies with the C7.

robvuk

Lease rates and residuals depend on how much they get from you at signing. If they get a larger deposit, your residual will be less. They have to estimate with the error on their side and assume you will put maximum miles allowable on it. The residual value means nothing.

Rapid Fred

Wasn't the "drop" 44%? That's how I read it...

Glenmcp

You are correct. 44% it is. I'll learn how to type in a few more years.