Topic: Test Drive: 2018 Chevrolet Equinox 2.0T AWD Premier

[dirtyjeffer]

Yeah - I guess it would depend on what the residual was.  Still, I have trouble pissing away money on something with that aggressive of depreciation.

the best value leases are vehicles that have high residuals combined with the lowest interest rates possible...higher interest rates and low residuals means you're on the hook for a lot more money...likely not worth leasing.

[NormT]

Yeah - I guess it would depend on what the residual was.  Still, I have trouble pissing away money on something with that aggressive of depreciation.

the best value leases are vehicles that have high residuals combined with the lowest interest rates possible...higher interest rates and low residuals means you're on the hook for a lot more money...likely not worth leasing.

You generalize too much.  Most reiduals are around 60% in 3 years which are the biggest depreciation years and they are they are all about the same within a 10% spread.  But looking at purchase price is more important.   A point or two difference in interest rates is a couple of Starbucks a week.  Get my drift?

[ArticSteve]

A point or two difference in interest rates is a couple of Starbucks a week.  Get my drift?

No Norm, I don't.   

[dirtyjeffer]

Yeah - I guess it would depend on what the residual was.  Still, I have trouble pissing away money on something with that aggressive of depreciation.

the best value leases are vehicles that have high residuals combined with the lowest interest rates possible...higher interest rates and low residuals means you're on the hook for a lot more money...likely not worth leasing.

The Subaru WRX STI comes to mind.

sure, or even the Forester...solid resale and 0.5% interest rates (purchase or lease).

[Sir Osis of Liver]

The Outbacks were terrific at holding their value. Usually a decent interest rate too.

[NormT]

The Outbacks were terrific at holding their value. Usually a decent interest rate too.

The Outback is one of the best residuals set by thr banks at 66-68%.  But that 8%  better residual is only $2,000 on a $26K.  That is discounted t cash on a Equinox and much better today than 3-years from now with time value of money.

[valuator]

The Outbacks were terrific at holding their value. Usually a decent interest rate too.

Absolutely.  Of course, they limit their financing terms to 60 months...that freezes out some buyers accustomed to GM and Hyundai's 96 months terms...

[RoadRageous]

Base unit in AWD is priced low and @ 1.5%/60 with very adequate features.  Hard to beat.  The top trims would be a dumb purchase though.  Kind of a GM thing. 

Indeed.  The depreciation on these in the used market is going to be brutal.  Probably best to lease.

i don't think you want to lease something with huge depreciation...your payments are going to be relatively high to account for the lack of residual...if you're going to lease, lease something with strong resale values to keep your payments to a minimum.

Edmunds has the Equinox residual 1-3% less than a Honda CR-V.  But interest rate is lower on Equinox 12/36 lease with lower money factor,  $5,000 lower transaction price based on cars.com, $1,000 lease, and approximately  $1,000-2,000 lease loyalty cash.  All around the Equinox is much less than the CR-V.

https://forums.edmunds.com/discussion/45748/chevrolet/equinox/2018-chevrolet-equinox-lease-deals-and-prices/p10

dirtyjeffer and NormT have it right ... the big drop in residual is largely because you got the cash back up front. That's a reason to buy.

[dirtyjeffer]

The Outbacks were terrific at holding their value. Usually a decent interest rate too.

Absolutely.  Of course, they limit their financing terms to 60 months...that freezes out some buyers accustomed to GM and Hyundai's 96 months terms...

long terms aren't exclusive to GM and Hyundai...considering the most popular term is now 84 months, that option is available from almost all brands (mainstream ones, anyway).

when the rates are practically free, might as well use their money...i certainly wouldn't use FCA's 96 month financing at 5% though...that's silly.