2014 Corvette Lease
 

In case this has not been reported, Ally will have a Super Ultra Low Mileage 2014 Chevrolet Corvette lease effective December 1, 2013.

Ally S and A tier SmartLease customers opting to drive 5,000 or 7,500 miles per year are eligible for additional residual increases!

That's great news for a lot of the Corvette owners that do not drive their cars much. Based on most trades we get, that will be a lot of people!

Now, we have to wait for all other details as of right now there are no lease programs showing when we pull up VIN incentives.

It might be really cool to get a 4yr 5,000 mi/yr lease.

Sounds interesting...

Awaiting more details....:bigears

any news on rate and residuals yet?

2yr/10k ????

Ready to sign up when available.
Thanks

Considering that my 2004 got 14,800 miles in 3 years and my 2011 got 13,990 in 2.5 years I could be interested in a low mileage lease as well, if the numbers work out.

In for info.

I'd use up the 5000 miles in the first couple of months.

Then this is not the program for you. ;)

I put about 35k on my daily driver every year so I understand if you don't have another car to abuse.

Anything???

Bueller.......

Still waiting on the incentivized lease. Here are the latest residuals:

CORVETTE STINGRAY (12 24 27 30 36 39 42 48 months @15k)

2dr Cpe 1LT 63 63 62 60 58 56 53 48
2dr Cpe 2LT 61 61 60 58 55 53 51 46
2dr Cpe 3LT 59 59 58 56 53 51 49 44
2dr Cpe Z51 1LT 65 65 64 62 60 57 55 49
2dr Cpe Z51 2LT 61 61 60 58 56 54 52 47
2dr Cpe Z51 3LT 60 60 59 57 54 52 50 46

Super Ultra Low Mileage options
48 Months +9pts (5k) +6pts (7.5k)
36-47 Months +8pts(5k) +5pts(7.5k)
24-35Months +7pts (5k) +4pts (7.5k)

Thanks for posting....it seems one can calculate what a potential lease cost would be per month based on this info and then factor in any incentive....I just don't know how to do it...

Anyone have any guidance?

58%, 15,000 miles/ year, 36 month residual on a 1lt is pretty nice. Should be able to work a decent # from there with a few thousand off sticker.

Based on the chart it looks like the best resale values as a percentage of purchase price are expected to be with 1lt rather than 2lt or 3lt as others have speculated here in the past.

The new incentives will be released tomorrow. We are hoping to see some lease options. If not we would have to use a standard rate with ALLY, and what that is... I'll speak to one of our finance managers.

Hmm.. color me interested.

What would the $0 down lease payment on a new 2LT Z51 NPP Black wheels carbon top Stingray run. Would be interested in 5000 or 7500 miles per year offers.

You need the missing 3rd factor in the equation...the finance rate.:cheers:

Yes, which also translates to the least depreciation if you buy and trade in the following year or two later...a nice strategy for those who get a new vette often.

You do.
You can calculate the lease payment etc with an online calculator if you know the following:

1) Selling price of the vehicle(capitalized cost).

2) Residual value from sticker for the term.

3) Interest rate(money factor as it is called in leasing).


Compare leases only as no money down, you can reduce the monthly payment with a down payment later in the evaluation process.

Currently we would have to submit the deal to Ally to get the rate as there are no incentivized rates. We have not submitted any leases yet.

As the super low mileage leases start tomorrow we think Ally/GM may give us some idea. Otherwise it will be on a case-by-case basis.

I guess I just don't understand what pleasure and "owner" satisfaction you can get from a car you don't actually own. It's sort of like bringing a "working girl" to a family reunion: she may look great, but she really is not yours

You don't own a financed car either until you pay it off. Leasing is good for people who like to dump cars after 3 years or so. Obviously the lease term has to be decent at least for it to make sense. Some cars don't lease out well.

I've bought and leased...each has strong and weak points.

Interested??

:crazy2:

Maybe as a business expense?
:iagree:

When you finance it's not yours either LOL

With a lease there's still a buy out option on most leases at the end of the term. On some cars with heavily subsidized leases it's actually better to lease as your "interest rate" can be very close to 0%.

Depends on the situation, I have a lease on a Volt and am SUPER happy I leased it as they dropped the MSRP $5k which killed resale value. If I would have purchased it I would be super pissed!

:iagree:

I've done both over the years but the only way I lease is with $0 down...

Don't know if I will lease or finance my C7...rates etc will dictate what I do when I buy in Q1 2014...

One interesting item to note from this lease chart...the residual value on z51's is 2% higher than non z51s. I knew the resale would be higher for a z51 but it's nice to see that from an outside party as well.

With an increase of 2% on the residual it's basically a free option through a lease. The 2% increase in residual gives you at least $2,700 of additional value at the end of the lease on a $2,800 option.

Good deal!

This is interesting to me as well. I've done both in the past ..Lease and buy Corvettes as well as other vehicles. I leased my '03 & bought my 2009 Z06. I'm currently leasing a 2014 LTZ Silverado & the interest rate is close to zero...It made no sense to Purchase this vehicle especially given what I got for my truck on trade! Cash is now invested..making me $$ It will be interesting to see where the lease deals come in when I get ready to purchase :o)

Your post shows that you are completely missing the entire point when it comes to reasons for 'leasing' something. The point of a lease isn't to pretend like you own it. The point is to limit the amount of time & money you are willing to spend.. while you enjoy it. When that time expires, you then have the absolute freedom to move on to something else. Case in point. You do not hire a working girl to come a family reunion. You hire a working girl for no-strings attached sex. Technically speaking you are paying her to get up and leave when you are done. Because just like most things in life, the longer she stays with you, the more you end up spending.

And thats the same point of a rental/lease. This is for someone who only wants the base Corvette experience for 2 or 3 years.. and then wants to move on to something else. Could be another brand. Could be the Z-car when its finally released. Either way, for many people a brand new car is something they want to enjoy for a couple of years and not worry about any future issues. Headaches that can come from maintenance/warranty/buying/selling/depreciation/taxes.

If they know up front how much they are willing to spend for this few years of experience and they are only interested in a long term 'rental' of a car.. then the hassle of buying & selling would simply end up being a more costly road to take.

Then you don't understand leasing. And you don't OWN a financed car until the LAST payment is made.

It's like folks that proudly trumpet about paying cash for a car, which in this era of cheap financing, is about the most financially stupid thing one can do.

Jimmy

:iagree: And it hasn't been mentioned yet but the size of your monthly payment is always less in a lease deal than in an outright buy. With 0 down on a 36 month buy (for example) your payments are huge, whereas the lease payment on the same vehicle is way, way less. Basically, you are only paying 'rent' on the value above the residual value. Best part is you can walk away after 3 years when the warranty is done. However, I will grant you this....lease deals are based on MSRP minus any incentives in place at the time of the transaction. Whereas, on a buy, the capitalized cost is most often negotiated downward. Well, except in the case of shelling out MSRP when buying a C7.:D

Any idea what those would be as this interests me

Can we get some numbers already ?
With 2-3k down , what kind of monthly payments are we talking about ?

I will have my finance department work up a couple numbers tomorrow on a base car. It looks like Ally standard rates will range from 4.79% to 11.29% based on the term and tier. I will have this confirmed tomorrow.

Wow - 4.79% to 11.99% is pretty high in today's market.

It certainly seems so. Though those are lease rates. And GM and Ally trully have no need to incentivize the car right now. We'll see what the numbers look like soon.

well, for every $1k you put down, it should lower lease approx. $30/mo. I usually lease (business purposes) but I actually bought my C7 as there were no lease deals and I got 2.4% financing. if I calculate right, i'm paying pretty much the same number on a buy. not bad...

:iagree: Exactly.

The worst thing about leasing is the confinement. Buying, whether making payments or not, you have far more flexibility any time you wish.

The pro-lease cheerleaders always conveniently ignore this.

Please explain your point in a little more detail. I haven't leased a car since 1995, so I am probably out of the loop and actually interested in what you're talking about.

Yes, if you drive high miles/year. But on a Corvette a 12000 mile/year deal would most likely satisfy anyone here, unless you are a salesman and use a vette in your daily grind.:D One thing I forget to mention above is the State sales tax, or excise tax, on a lease deal is always calculated on the MSRP. And, here's the real pisser, you have to pay tax on the incentives too! So. here in Michigan on my latest lease I got $4250 in incentives off the deal, but had to pay 6% sales tax on that amount...and it's upfront coupled with the first month's payment...the gubment will always get their unfair share.:D

So Michigan doesn't tax leases on a per-payment basis?

If you got an incentive which lowered the payment the tax would then be lowered as well, at least in California.

Not true. Some states, such as AZ, WI and various other only tax the monthly payment. In other cases its the actual sales price less any trade credit applied.

In New York, sales tax is due on incentives regardless if it is a lease, financed, or cash. Yep, pay sales tax on dollars you never spent!

I don't ignore it, but that's something most people should be aware of. That if you get into a lease contract, you should have an idea of what kind of mileage you do on an annual basis. And if you take out let's say a 36 month lease, that you plan on staying in it for 36 months. If you can get out earlier and want to without losing your shirt ....great.

I assume you are referring to trading cars sooner if something comes along that grabs your fancy...

If you BOUGHT the car outright, then you are clean to do that.

If you FINANCED the car, baring putting down some crazy sum (Like 50% down which would NOT be very smart), the car will be expensive to trade but car dealers CAN (and will) make it happen....just roll all that negative equity into the new car loan....

Leasing allows one to hold on to more of THEIR money to do other things with. And you can get out of a lease early, but it costs MONEY to do it, no different than getting out of a financed car early....you owe more than the car is worth.

In the end, if you plan on keeping a car for many years (or you put a lot of miles on it), buying the car makes more sense. If you are getting a toy (which a Corvette is to many), leasing makes sense (you have a warranty the whole time, payments are lower, etc). BOTH options have plusses and minuses, it is up to YOU to decide which works.
Jimmy

oh yes, that is also taxed, but not up front like the incentives, like the other poster said, it's a tax on money you never spent.:eek: Costco does it too...buy a cellphone with a rebate on it, and you still pay tax on the rebate....some jackwipe politician started this nonsense and it pisses me off!

:lurk:

You are correct. You have the flexibility to in many cases sell the car for far less than what is owed any time you so desire.

What you say doesn't really make any sense. There's nothing wrong with putting 50% down when purchasing a car. Yeah, there's a good chance you can make more with investments than the ~2% it should cost you to finance the car, but putting more money down is the safer option. Additionally, you absolutely don't need to put down 50% to avoid having negative equity -- that's ridiculous. If that happened, generally speaking it would mean the car depreciated by 50% immediately after you bought it, which doesn't happen (baring some very unusual scenarios perhaps).

Any update on sample numbers? Curious what you see on your side.

Thx

This is not necessarily true. You can often negotiate the capitalized cost on a lease deal. You may also be able to negotiate the money factor (interest rate), security deposit, acquisition fee, etc. About the only thing you can't negotiate is the residual value for the model/term/miles.

Well,

Here it is... We did a comparison on a 2014 1LT, base car, using fees in NC. MSRP: $51,995.00

36 months, first payment down
12,000 miles - $798.81/month for S tier (top tier)
12,000 miles - $1,033.47/month for C tier (lowes prime rate)

So, all payments include all fees.

For comparison purposes here is the same car for 72 months for 1.99% to 7.99%

1.99% - $805.06
5.99% - $906.04
7.99% - $959.34

and 36 months 5,000 miles/year Super Low mileage Lease...
S tier: $687.88
C tier: $933.71

Please remember these are calculated at MSRP for a base car, including all our fees and NC taxes... There are a million and one possibilities. Lease rates are Ally buy rates. Ultimately Ally will determine the tier you qualify for. Also, purchase rates are as an example. You may fall anywhere in between...

Thanks for your time :cheers:

Now that I think of it you are correct. I am used to employee discounts which fix the price of the vehicle at the bottom of the invoice. There is no negotiating that number.:cheers:

I find it interesting that there's only a $110/mo difference in the lease payment to drop from 12K miles/yr down to 5K/mi yr...you're only allowed 42% of the miles, yet the payment drops by only 14%. Obviously there won't be a linear relationship between the two, but I would think that a car with only 15K miles at lease turn in would have significantly higher value than one with 36K miles after three years and hence a greater delta in the monthly payment amount.

I may be looking at this all wrong, so others please chime in...

What I said makes perfect sense. Putting $30K down on a $60K car is foolish. If you can't make more than 2 percent on investment, then you're not doing ANY homework. And how can putting more money down on a DEPRECIATING object be safer????

The car doesn't depreciate by 50% immediately nor does someone buy a new car and immediately trade it or sell it....what are you talking about? The average new car depreciates 20% in the first year (actually, the minute it's titled and driven off the lot), 15% per year for the next 2 years, so in 3 years, the average car is worth 50% of it's purchase price.

In the end, I would rather use someone else's cheap money to buy/lease a car and use my hard earned money to gain value. There is not a financial advisor alive that would advise you to put YOUR $30K cash down on a car rather than investing it.

Jimmy

In the traditional leasing market, which is based upon car sales, there isn't a huge discount for high mileage or premium for ultra low mileage when used cars are sold - typically it is $0.08-0.11 per mile, so for a 3 year lease the difference between 36,000 miles and 15,000 miles in terms of resale value is at most $2,300, or about $64/mo, so at $110/mo, the Corvette is doing close to $0.19/mi, which is well above average.

While I agree with you that making more than 2% on investments is generally quite achievable, there will still be risk. If the market crashes, your investments will probably lose money, and the guy who put down 30k will come out ahead (until your investments catch up, which could take years). Unless there's an investment I'm not aware of that is 100% guaranteed to yield greater than 2% after fees, and that has no restrictions (i.e. anyone can invest at any time, with any amount of money, liquid). If something like that exists currently, I'd like to know about it.

The fact that it's a depreciating object is not particularly relevant. This same argument could be applied to a mortgage for a house. It's about the choice between reducing your liability (debt) and reducing the interest you're paying (however little it may be), or making an investment which will most likely return more than the interest you're paying on the loan, but may not. That's why I said it's safer, if not necessarily smarter.

In your original post, you seemed to be saying that it was necessary to put down approximately 50% on a car to avoid having negative equity on it. This is not the case. To take your example, let's say the car costs 60k, is worth 80% of the purchase price for the first year, and depreciates 15% per year for the next 2 years. Let's say the down payment is 20% (12k), 72 month term, 2% interest. At no point will there be negative equity:

Month | Loan Balance | Car Value
0 | 48000 | 48000
12 | 40394 | 48000
24 | 32635 | 39000
36 | 24719 | 30000

Granted, this example doesn't take into account sales tax or dealership fees that may be rolled into the loan, but you still don't need to put down 50% to avoid having negative equity (baring some crazy scenario where the car depreciates by 50% within the first year). Also, many cars do not depreciate as quickly as in this example.

I think there are scenarios where many advisors would suggest you to put more money down on a car. For example, if their client is already well into retirement, it may be advisable to buy the car outright rather than financing it and risk losing a portion of their portfolio on an investment that may or may not earn more than the loan interest over the next few years.

Is there a lease available or not
 

Sounds like a bunch of confusion to me.... My dealer can not find anything for a lease on this car! Someone please clarify

These lease rates don't seem to good to me. I leased a 72k car for about the same as this 52k car? Maybe I am missing something? Residule?

The money factor (interest rate) probably isn't that good, plus those payments are with no money down and no discount off MSRP.

Also, remember that aside from the interest, what you're paying for in a lease is the depreciation the car undergoes. It's not unreasonable for a 52k car and 72k car to depreciate at about the same rate during the first few years.

You can lease it. The residuals are available through Ally residual guide. Ally also sent us an email with adjusted residuals for ultra low mileage leases. The rates are also available through Ally but will not pull up through GM Global Connect (dealer tool that shows incentives, rates, residuals, rebates...) because there are no special rates. You have to use Ally's standard lease rate sheet.

The reason why there are other more expensive cars with similar residuals out there that can be leased for less is exactly that - the rate. Well, rebates too... Most advertised lease specials have incentivized rates. C7 does not. And it probably won't have one for as long as the demand is greater than supply.

Still, if someone plans on driving the car a few thousand miles a year and possibly getting into an upcoming, say, Grand Sport, and does not want to deal with trading... Well, it may be worth it. Turn one in and get another one... The payment may not necessarily be lower but there is less risk. To some people that is worth it.

I hope this helps. And again, please keep in mind the examples I used are for comparison purposes only. We have delivered a few C7's and only one was a base car...