Leasing
Thread Starter
Instructor
Joined: Dec 2013
Posts: 175
Likes: 1
From: Wyckoff NJ
Leasing
Has anyone leased a new Stingray lately? What kind of interest rates and residual values did you realize over a 4 year term? I'm considering leasing versus an outright purchase. My dealer doesn't have many options. Thanks in advance for your comments.
Drifting
Joined: Mar 2002
Posts: 1,687
Likes: 9
From: Kemah Tx
Just make sure oh you are very well versed in how leasing works. Most of the time, it does not make sense to lease...especially with the recent price increase. There are 3 basic tenets of leasing. The purchase price...the residual value...and the money factor(similar to interest rate). You are a basically financing the depreciation of the car. The wider the gap between purchase price and residual value, the bigger your payments will be.
Go to www.leasecompare.com and that will give you an idea. It is generally never a good idea to put money down on a lease. And state laws differ when it comes to leasing. Some more favorable than others.
Go to www.leasecompare.com and that will give you an idea. It is generally never a good idea to put money down on a lease. And state laws differ when it comes to leasing. Some more favorable than others.
Thread Starter
Instructor
Joined: Dec 2013
Posts: 175
Likes: 1
From: Wyckoff NJ
Just make sure oh you are very well versed in how leasing works. Most of the time, it does not make sense to lease...especially with the recent price increase. There are 3 basic tenets of leasing. The purchase price...the residual value...and the money factor(similar to interest rate). You are a basically financing the depreciation of the car. The wider the gap between purchase price and residual value, the bigger your payments will be.
Go to www.leasecompare.com and that will give you an idea. It is generally never a good idea to put money down on a lease. And state laws differ when it comes to leasing. Some more favorable than others.
Go to www.leasecompare.com and that will give you an idea. It is generally never a good idea to put money down on a lease. And state laws differ when it comes to leasing. Some more favorable than others.
Pro
Joined: Jan 2013
Posts: 639
Likes: 17
From: DFW TX
What model and term were you looking at that had a 52% residual value?
This chart was posted in December by a dealer with the residuals for your reference.
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)
This chart was posted in December by a dealer with the residuals for your reference.
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)
Thread Starter
Instructor
Joined: Dec 2013
Posts: 175
Likes: 1
From: Wyckoff NJ
What model and term were you looking at that had a 52% residual value?
This chart was posted in December by a dealer with the residuals for your reference.
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)
This chart was posted in December by a dealer with the residuals for your reference.
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)
Last edited by JVJaz; Mar 7, 2014 at 01:11 PM. Reason: Made a change
Racer
Joined: Feb 2014
Posts: 374
Likes: 92
What model and term were you looking at that had a 52% residual value?
This chart was posted in December by a dealer with the residuals for your reference.
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)
This chart was posted in December by a dealer with the residuals for your reference.
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)
Thread Starter
Instructor
Joined: Dec 2013
Posts: 175
Likes: 1
From: Wyckoff NJ
Make sure you also read the fine print on the lease return. Many get a nasty surprise when they go to return the car. They find out there is a return fee and condition inspection where the dealer can pull more cash out of your pocket. Leases are the dealerships biggest money makers. There is a reason why.
Race Director
Joined: Jan 2000
Posts: 12,375
Likes: 406
From: Florida
Your points are excellent, and I have seen more people screwed on leases than any other transaction. The key is not to get sucked into the "what payment can you make" game, and remain focused on the cap cost that you buying, because this is really as much a purchase as paying cash.
All that said, leases done right have their place. If you have good credit, are proficient with calculating terms during a negotiation, have predictable mileage patterns, intend to get a new car every 3 years to have the latest and greatest, and hate the hassle of selling/trading in the car, then a lease just might make sense. I have sold 3 corvettes that I bought cash in the past and it is a giant hassle. Most people buying a used Vette do not have cash lying around. Wound up giving them to Corvettes of Anaheim for consignment since they could at least provide financing to buyers. And of course, you get totally screwed on trade-in.
Ah, the joys of a depreciating "asset".
The example above is just OK. The 58% res at 36 mos is pretty weak, but first model year of a new model Vette will depreciate faster as the better new deals start to appear year 3. Unfortunately, this tells us little about the lease since we do not have the MF or the fees.
All that said, leases done right have their place. If you have good credit, are proficient with calculating terms during a negotiation, have predictable mileage patterns, intend to get a new car every 3 years to have the latest and greatest, and hate the hassle of selling/trading in the car, then a lease just might make sense. I have sold 3 corvettes that I bought cash in the past and it is a giant hassle. Most people buying a used Vette do not have cash lying around. Wound up giving them to Corvettes of Anaheim for consignment since they could at least provide financing to buyers. And of course, you get totally screwed on trade-in.
Ah, the joys of a depreciating "asset".
The example above is just OK. The 58% res at 36 mos is pretty weak, but first model year of a new model Vette will depreciate faster as the better new deals start to appear year 3. Unfortunately, this tells us little about the lease since we do not have the MF or the fees.
Last edited by TTRotary; Mar 7, 2014 at 01:37 PM.
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Burning Brakes
Joined: May 2008
Posts: 1,146
Likes: 28
From: Aledo, TX
I have had some really good leases that made a lot of sense but the GM offers I have seen aren't good at all. I leased a new BMW 335xi in 2007 for $400 a month for 36 months and 36k miles no money down. BMW subsidizes their leases though with discounts on the car and that is what makes them affordable.
Team Owner
Joined: Sep 2010
Posts: 32,042
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Pro
Joined: Jan 2013
Posts: 639
Likes: 17
From: DFW TX
Drifting
Joined: Mar 2002
Posts: 1,687
Likes: 9
From: Kemah Tx
Banned Scam/Spammer
Joined: Mar 2005
Posts: 8,083
Likes: 3,869
From: Bonita Springs FL
Yes sir, I am extremely conversant with many different types of leases of automobiles, aircraft, medical equip etc. I was not lending absolute credibility to a 41% depreciation in one year. I fully understand how all those numbers can be artfully manipulated with cap reduction, money factors, exaggerated residuals, manufacturers subsidies, after tax implications, etc. to show what ever the retailer or leasing agency prefers. I do see more than a few C7 owners or potential buyers here who have some rather gross misconceptions however about what annual depreciation rates can be expected. New vehicles have pretty nasty first year depreciation hits. Corvettes tend to demonstrate less painfull depreciation rates than many other vehicles. There is a wealth of historical pricing data that can be "Googled up" to validate that fact.
Drifting
Joined: Mar 2002
Posts: 1,687
Likes: 9
From: Kemah Tx
Yes sir, I am extremely conversant with many different types of leases of automobiles, aircraft, medical equip etc. I was not lending absolute credibility to a 41% depreciation in one year. I fully understand how all those numbers can be artfully manipulated with cap reduction, money factors, exaggerated residuals, manufacturers subsidies, after tax implications, etc. to show what ever the retailer or leasing agency prefers. I do see more than a few C7 owners or potential buyers here who have some rather gross misconceptions however about what annual depreciation rates can be expected. New vehicles have pretty nasty first year depreciation hits. Corvettes tend to demonstrate less painfull depreciation rates than many other vehicles. There is a wealth of historical pricing data that can be "Googled up" to validate that fact.
Banned Scam/Spammer
Joined: Mar 2005
Posts: 8,083
Likes: 3,869
From: Bonita Springs FL
All good here too. BMW has the lease the lease thing raised to the standards of a carnival game. Talk to them one month and they offer you a lease payment of $850, next month its $475. Lots cheaper but does very little in the credibility department.
Le Mans Master
Joined: Dec 2012
Posts: 6,442
Likes: 2,535
From: New Jersey
Maybe vettes are easier to resell than other cars, but if you are only going to keep the car 3 years and get a new one, you might want to consider leasing for one reason- reselling a 3 year old car privately is a major hassle as people want a bargain. Bring it to the dealer in a trade and you get wholesale. Subtract the purchase price from the trade in and divide by 36 and you will get the real cost monthly-- compare that against what you could have leased the car for and you might be surprised.