Chevy Spark EV Forum

It is currently Tue Dec 11, 2018 8:02 am

All times are UTC - 8 hours




Post new topic Reply to topic  [ 7 posts ] 
Author Message
 Post subject: Young Person here needs financial advice on end of lease
PostPosted: Mon Oct 08, 2018 7:28 pm 
Offline

Joined: Sat Sep 17, 2016 8:27 pm
Posts: 4
HI Everyone

Thank you ahead for your feedback

I am stuck in a bind right now on decision making

Who/Where: Currently married no kids, in my mid 20s with a decent stable office job of 2 years and slowly building a savings, just bought a starter home in a rural area in WA State a year ago. Combined Income about 85K, mortgage + tax + utilities about 2300/month

What: My 2LT Spark EV lease ends in early 2019 and I don't know what to do?
Wife is the one driving it, the car is for driving to and forth work 45 miles round trip everyday.


Option A: I can either buy the 2LT Spark EV for 10,995 and call it a day . I would take out a 48-60 month loan and resume a similar monthly payment of 170-200/month which I'm comfortable in. i do not have savings I feel comfortable in using to make a down-payment

or

Option B; I can go buy a Chevy Volt or Bolt and take out a 60-72 Month loan and pay $500-600/month for the car with zero down. i do not have savings I feel comfortable in using to make a down-payment.

or

Option C: I honestly at the end of the day I don't need the Spark as I have a 2015 Subaru at home that my wife can drive. I mainly work from home or take the train. My wife can drive the Subaru and I can save the money in hopes of adding to monthly savings

What would you guys do in the same situation?




What is holding me back on making a solid decision are the following:

Option A
CON: If I do go with buying the Spark EV, I would have bought it at full MSRP value (full residual value)
CON: If I do buy out the Spark EV, I want to be able to drive it for 5-7more years, is it really going to retain a decent range 5 or 7 years in the future...decent for me would be at least 60 miles round trip in mild temperatures, Yes we have the 8 year 100K warranty, which I read and came to conclusion doesn't cover much for an avg. driver unless battery degradation hits more than 40% within the warranty period... Would I be better off just putting that monthly payment into a better car like the Volt or Bolt EV?

Option B
CON: With no down-payment, 500/month is quite a lot of money , could I not use that in a better place like stocks or Roth IRA?
CON: Will this Bolt EV or Volt EV last me 7-10 years down the road? I have noted that no VOLT battery has yet to be replaced...

Option C
CON: I miss the Spark EV, will need to use gas everywhere I go


Let me know if I'm missing something.

My mind is twirling over what seems like such a simple decision to make :| :| :| :| :cry: :cry: :idea: :idea: :? :shock: :shock: :shock: :shock:


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Tue Oct 09, 2018 4:50 am 
Offline

Joined: Fri May 01, 2015 5:52 am
Posts: 1130
Location: KC,MO
Drive the Sube. (What is she paying for electrons now? Free if she's lucky...)
Save money while gas is cheap.
Get a piggy banks and save for your next EV.
Then,
Buy a used Spark EV for $7850,,,, this is what mine is worth I am told....
Buy a lease return Bolt someday.
Buy a used +2013 Volt, ~$9500. In ideal conditions it should do the commute on EV.

Old Leaf, old iMiEV?? :lol:

_________________
Used '14 2LT w/ DCFC.
+56k miles.


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Tue Oct 09, 2018 7:48 am 
Offline

Joined: Wed Oct 30, 2013 7:27 am
Posts: 832
Location: Manteca, California
EVPDX wrote:
HI Everyone

Thank you ahead for your feedback

I am stuck in a bind right now on decision making

Who/Where: Currently married no kids, in my mid 20s with a decent stable office job of 2 years and slowly building a savings, just bought a starter home in a rural area in WA State a year ago. Combined Income about 85K, mortgage + tax + utilities about 2300/month

What: My 2LT Spark EV lease ends in early 2019 and I don't know what to do?
Wife is the one driving it, the car is for driving to and forth work 45 miles round trip everyday.


Option A: I can either buy the 2LT Spark EV for 10,995 and call it a day . I would take out a 48-60 month loan and resume a similar monthly payment of 170-200/month which I'm comfortable in. i do not have savings I feel comfortable in using to make a down-payment

or

Option B; I can go buy a Chevy Volt or Bolt and take out a 60-72 Month loan and pay $500-600/month for the car with zero down. i do not have savings I feel comfortable in using to make a down-payment.

or

Option C: I honestly at the end of the day I don't need the Spark as I have a 2015 Subaru at home that my wife can drive. I mainly work from home or take the train. My wife can drive the Subaru and I can save the money in hopes of adding to monthly savings

What would you guys do in the same situation?




What is holding me back on making a solid decision are the following:

Option A
CON: If I do go with buying the Spark EV, I would have bought it at full MSRP value (full residual value)
CON: If I do buy out the Spark EV, I want to be able to drive it for 5-7more years, is it really going to retain a decent range 5 or 7 years in the future...decent for me would be at least 60 miles round trip in mild temperatures, Yes we have the 8 year 100K warranty, which I read and came to conclusion doesn't cover much for an avg. driver unless battery degradation hits more than 40% within the warranty period... Would I be better off just putting that monthly payment into a better car like the Volt or Bolt EV?

Option B
CON: With no down-payment, 500/month is quite a lot of money , could I not use that in a better place like stocks or Roth IRA?
CON: Will this Bolt EV or Volt EV last me 7-10 years down the road? I have noted that no VOLT battery has yet to be replaced...

Option C
CON: I miss the Spark EV, will need to use gas everywhere I go


Let me know if I'm missing something.

My mind is twirling over what seems like such a simple decision to make :| :| :| :| :cry: :cry: :idea: :idea: :? :shock: :shock: :shock: :shock:

This is really a question of priorities for you and your wife to decide. Here are my suggestions:

1. I assume you have a 2016 Spark EV 2LT. In my opinion, this is probably the best of the three years. I say this because I had, until I had to turn in my leased 2015 Spark EV, a 2014, 2015 and a 2016 Spark EV. I purchased, as used vehicles, both my 2014 2LT Spark EV and 2016 2LT Spark EV. I have found the 2016 to be the best of the three years with the 2014 running a very close second. I had concerns with the HV battery in my 2015.

2. I am assuming you will keep the 2015 Subaru. Therefore, do a full cost analysis and figure out the total cost of ownership, including operating costs, for your Spark EV. That money can be used to pay for your Subaru if it is not already free and clear. Once you have paid for the Subaru and have sufficient funds for future events (kids), then consider purchasing and paying for a nice used Spark EV.

3. No matter what - Stay out of unnecessary debt!!

4. Plan for your family and start saving NOW! Kids are expensive but wonderful.


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Tue Oct 09, 2018 9:38 am 
Offline

Joined: Sat Dec 06, 2014 9:00 pm
Posts: 33
I'd rule out option B right off the bat. If you're worried about the cost of buying a used Spark EV, there's no way it will make financial sense to buy a Bolt or Volt. In addition to my Spark, I have a Bolt lease. The Spark EV was a good financial choice when I bought it (after tax credits, it wasn't much more than your lease buy-out). The Bolt was not a good financial choice, but I'm two decades older and more financially secure. The Bolt is a great car, but for a commuter it's overkill.

I like option A, but I like the Spark EV and I'm biased. You'll likely be able to buy a used one for less than your lease buy-out, so you should explore that option. The con there is that you don't know its history, but if you can save a couple grand that's probably worthwhile. 45 miles should be no problem for the Spark in a mild climate for years to come, but that does depend somewhat on driving style. What does the Spark show on a full charge now? If it's 80+, you'll have no problems. If it's 65 because your wife has a lead foot then she may have to slow down in a few years to make sure she gets home.

If you're keeping the Subie anyway and don't need two cars, option C is the best financial decision. At 900 miles/month of commuting, you might save $100/month in fueling costs, which won't make up for the car payment. But you've got a few months before you have to make a decision. Pretend you only have one car and see how often it's an inconvenience, and decide how much that convenience is worth to you.

Finally, you're young and have a lot life ahead of you, so if you haven't already, read some Mr. Money Mustache and the like to help keep your financial priorities in order. He'd call option B shooting yourself in the head financially. A four-year loan on a used car is also not financially smart. If you can find $500/month for a Bolt, you can find that money for a Spark and pay it off in 2 years instead of 5. Or put that money toward early retirement or a big down payment on a Spark EV after yours is gone for a few months and you really miss it.


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Tue Oct 09, 2018 9:49 am 
Offline

Joined: Fri May 01, 2015 5:52 am
Posts: 1130
Location: KC,MO
MrDRMorgan wrote:
....
3. No matter what - Stay out of unnecessary debt!!

4. Plan for your family and start saving NOW! Kids are expensive but wonderful.

Or be a DINK.
Plan your next exotic vacation now!

_________________
Used '14 2LT w/ DCFC.
+56k miles.


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Fri Oct 12, 2018 12:22 pm 
Offline

Joined: Fri Oct 12, 2018 10:54 am
Posts: 12
Firstly, congrats on having things so well sorted! Especially being married and owning your home (renting is insane these days). Also for looking at several angles to make a rational conclusion.

For your Spark, you didn't put much info about it (year, mileage, condition). In any case, the actual residual is only something to worry about when it's really low. Otherwise, all we care about is market value. So take that $10,995 figure, crumple it into a little ball, and toss it in with the recycling.

I just (2 mos ago) picked up a 2015 2LT in great shape (and new front tires) with 18K on the clock for $8995. Perhaps could have pushed for a little better, but really liked working with Platt Auto down in Milwaukie. Again, don't know yours but I do know it can't be $2k better. Plus, consider from the dealer's side, they'd have to get it detailed, inventoried, advertised, etc. That has to be worth $500?

So again, forget $10,995. You'll keep it out of their hair for no more than $7995. As far as a down payment, my friend purchased his leased Leaf (after a well negotiated price) without one. I'm not sure if that's typical?

Next consideration is the savings in operating costs. If your putting 1k/mo on it, that's probably saving $100 in fuel (based on $0.02 vs $0.12 / mi)? So your net cost for owning the Spark is more like $60-70/mo (ok insurance, so maybe $100). And that's not counting the reduced maintenance needed for the Subie, or the resale value from having put 60K fewer miles on it (at the point the Spark is paid off).

And then there's convenience. The Spark excells at commutes like the slog over the bridge. I'm sure some gas cars can be pretty nice too, but mine feels easily twice the effort and noise to drive in traffic. Plus, are you really ok with being home to an empty driveway/garage all day? Having a car there ("just in case") is worth something. And of course there's the convenience of stepping out to a preheated car with a full (if relatively small) tank every morning.

Lastly, the fact that you're running entirely on locally-produced, mostly-renewable, war-, death-, and pollution-free fuel is nothing to discount.

As far as buying a new Bolt, why? I'm struggling to see the value in those. The only real argument for them seems to be that Tesla currently has no incentive to offer a Model 3 for under $50K. The Bolt is certainly a step up from the Spark in probably every way, but the value just doesn't look to be there. Especially considering the next few years should bring a lot more choices to that market segment.


Top
 Profile  
 
 Post subject: Re: Young Person here needs financial advice on end of lease
PostPosted: Fri Oct 12, 2018 12:51 pm 
Offline

Joined: Sat Sep 17, 2016 8:27 pm
Posts: 4
HI Everyone

Thank you very very very much for your wisdom and replies.

I am ruling OPTION B out of the question for sure. Thank you! :lol: Going to ride it out till early 2019 and reassess the EV used marketplace while settling on Option C.

As for the one i currently have is a 2015 2 LT with fast charging and about 24K mileage. I really love the car and rationally could get one used for 2k cheaper as many of you shared your experience. The lease spark is in pretty new condition. leased it at the end of 2016 thats why returning after 39 months into early 2019

I have been looking at all angles on OPTION A, including a replacement equivalent (LEAF, eGolf, 16' Volt) but the SPARK EV is still the most cost effective. With the eGOLF coming close at 14k to 16k and a used VOLT 2016 LT coming in high 18s...

Just to share some new random updates I discovered for everyone and anyone that is in a similar position (maybe not as cash strapped)
- #2 Car in the US that depreciates the most - CHEVY VOLT depreciates 71% over 5 years (WOW)
- 2017 eGOLF is the only year that the battery was upgraded from 24 kWh to 34 kWH (83 MI range to 125 MI range) but still air cooled temp management...
- BMW i3 - getting 158 Mile range for 2019 models and no more range Extender option. BMW i3s besides the tesla seem to be the only EV that has a drop down ONE UNIT replacement battery cell system all in one where as the CHEVYs and others are individual cells spread out
-I've been seeing some Chevy Volts 2016 LT models with 20-40K mileage going for 18 to 20K...i could imagine this dropping even more next year


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 7 posts ] 

All times are UTC - 8 hours


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
© Chevy Spark EV Forum - part of the MyElectricCarForums.com Group