Sunday, March 9, 2014

Lease End Conversation with US Bank

I got a call from US Bank last week regarding the end of my lease. Even though I had already spoken to them about my intentions previously, they wanted to speak with me about them again. So I told them that I had actually changed my mind... I had previously planned to do another lease for a 2014 Volt. But, since I drive so little and use less than half of the miles I'm paying for in a lease, I decided I should probably buy the next Volt.

Looking at the numbers last month, it seemed I could buy a nicely loaded 2014 for about what I am paying now for my lease. Something like $470/mo. I could lease for considerably less but if I buy, I also get the $10,000 incentive to put in the bank and I own the car for as long as I want it. It just makes more sense now that prices have dropped.

But the banker wanted to tell me I could buy my current car and pitched it like it was a really great deal. hey would offer me a 3.15% loan and monthly payments of $574/mo. This doesn't sound like a bargain to me and honestly, I have no idea how leasing works out for the leasing company. Of course, buying new I have a down payment which I won't be making if I bought the current car. And there's nothing wrong with the current car at all; it's in fantastic condition as I have taken good care of it, it's got just over 15K miles on it, still has the same range as the day I got it. However, the 2014's have new features I want and slightly more range, so even putting a few thousand down, I get $10K back and $100/mo less in payments.

Of course, everything is subject to change as the end gets closer. I have just over two months left and when I have 45 days left, they will schedule an inspection. I think I will want to see what the deals are at that time before I decide to buy or lease, but I can't see the numbers working to keep this one. Much as I like it, the intention all along was, lease the first generation and then see... I don't know if it was the right thing and until all the smoke clears, I won't. There is a final disposition fee which will be waived if I buy or lease through US Bank again. There may be other fees assessed based on the inspection. I won't be too surprised if they assess some small amount but I can't imagine they will find any expensive issues. <fingers crossed>

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