Cdni3
Posts: 29
Joined: Wed Nov 25, 2015 4:54 pm
Location: Vancouver, BC

Re: Chevy Bolt begins production “in just a few short months

Tue Jan 12, 2016 9:08 pm

I hate to be the bearer of bad news but a balloon payment is an agreed upon sum payable at the end of the LOAN with the risk being held by the borrower (you) not the lender (BMW or whoever) - if that the amount due (balloon amount) is actually less than the residual value. You own the car for the original agreed selling price less principal paid over the initial term. If the residual is lower at term end then the borrower would be expected to make up the difference and would be as they say underwater by this amount. Its not a lease which the lender in most cases would be responsible for any shortfall in residual value that could be negotiated later if it was lower.

DEFINITION of 'Balloon Loan'
A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan.

You usually can refinance the balloon amount with the original lender (BMW) over a new term with a new interest rate at the time the balloon payment is due, but the balloon amount cannot be negotiated. You signed the purchase agreement agreeing on this amount when you took out the car loan and drove the car off the lot.

psquare
Posts: 483
Joined: Wed Oct 15, 2014 5:57 am
Location: i3 REx, 225xe Hybrid UK
Contact: Website

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 3:10 am

Guys,

Hold your horses until you read the first real-world reviews of the Bolt. At the moment, it's all marketing. I'm sure it's going to be great, but let's not pretend no one on this forum hasn't learnt any lessons from BMW's range claims for the i3. Let's also wait what the final interior looks and feels like. As I said, I'm happy to be positively surprised - a 60 kWh battery can go a long way, but how much of that is useable?

As far as ownership goes, my daily/weekly range needs won't change. I always knew I'd keep this car for 4-5 years.

And another good thing: GM decided to use SAE Combo for rapid charging, which can only help i3 owners.

Schnort
Posts: 238
Joined: Wed Jan 28, 2015 7:16 pm

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 6:04 am

Cdni3 wrote:I hate to be the bearer of bad news but a balloon payment is an agreed upon sum payable at the end of the LOAN with the risk being held by the borrower (you) not the lender (BMW or whoever) - if that the amount due (balloon amount) is actually less than the residual value. You own the car for the original agreed selling price less principal paid over the initial term. If the residual is lower at term end then the borrower would be expected to make up the difference and would be as they say underwater by this amount. Its not a lease which the lender in most cases would be responsible for any shortfall in residual value that could be negotiated later if it was lower.

DEFINITION of 'Balloon Loan'
A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan.

You usually can refinance the balloon amount with the original lender (BMW) over a new term with a new interest rate at the time the balloon payment is due, but the balloon amount cannot be negotiated. You signed the purchase agreement agreeing on this amount when you took out the car loan and drove the car off the lot.

Yes, though this was the 'owners choice' financing option offered by BMW. The selling point of which was that you could surrender the car after two years (plus $350, plus the $7500 federal rebate, plus mileage overage and excess wear and tear) and be free of the obligation(or at least that's how the salesman and finance officer sold it). I'll be extraordinarily disappointed with BMW if that isn't the case and they revise the value of the car down from the contract stated price to market value and leave me holding the bag, contrary to their oral terms of the agreement.

cmj912
Posts: 83
Joined: Tue Dec 08, 2015 4:42 pm
Location: Rhode Island

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 6:45 am

psquare wrote:Guys,

Hold your horses until you read the first real-world reviews of the Bolt. At the moment, it's all marketing. I'm sure it's going to be great, but let's not pretend no one on this forum hasn't learnt any lessons from BMW's range claims for the i3. Let's also wait what the final interior looks and feels like. As I said, I'm happy to be positively surprised - a 60 kWh battery can go a long way, but how much of that is useable?

As far as ownership goes, my daily/weekly range needs won't change. I always knew I'd keep this car for 4-5 years.

And another good thing: GM decided to use SAE Combo for rapid charging, which can only help i3 owners.


What he/she said :D

I pretty much expected that as soon as I leased my car I would all of a sudden be confronted with newer, bigger, better, faster, awesome-r etc.
The technology is advancing rapidly. Three days after GM's announcement, Ford will say "Hi Everyone, we're reintroducing the Escort and it's going to be called the E-scort and it is better...blah blah blah...".
I'm happy with my car. It is the first ever "premium luxury marque" I have had and, to be honest, if my time with the i3 is good I'll give them my money again.

Some of the car is the ownership experience. I have had cars from Honda, Toyota, Fiat-Chrysler, etc in the past few years and I can tell you the "I love you customer" experience can be WAAAAAAAYYYYY different. But you know that. Just me .02

i3atl
Posts: 436
Joined: Wed Mar 05, 2014 10:47 pm
Location: Atlanta, GA

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 6:48 am

Schnort wrote:I did the 'owners choice'. I'm really hoping that BMW won't play the game of 'your residual is market value, regardless of how we promised it would cover the balloon payment', leaving me paying for the difference if I decide to surrender the car.


Your residual is in your BMWFS contract - aside from potential trade-in options, or if you wanted to keep the car, the market value is not relevant with the Owner's Choice plan. The turn-in option is just like a lease.

i3atl
Posts: 436
Joined: Wed Mar 05, 2014 10:47 pm
Location: Atlanta, GA

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 6:53 am

Cdni3 wrote:I hate to be the bearer of bad news but a balloon payment is an agreed upon sum payable at the end of the LOAN with the risk being held by the borrower (you) not the lender (BMW or whoever) - if that the amount due (balloon amount) is actually less than the residual value. You own the car for the original agreed selling price less principal paid over the initial term. If the residual is lower at term end then the borrower would be expected to make up the difference and would be as they say underwater by this amount. Its not a lease which the lender in most cases would be responsible for any shortfall in residual value that could be negotiated later if it was lower.

DEFINITION of 'Balloon Loan'
A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan.

You usually can refinance the balloon amount with the original lender (BMW) over a new term with a new interest rate at the time the balloon payment is due, but the balloon amount cannot be negotiated. You signed the purchase agreement agreeing on this amount when you took out the car loan and drove the car off the lot.


You're correct when it comes to typical balloon loans, but not Owner's Choice, which is similar to a lease. Maybe this plan isn't offered in Canada?

Cdni3
Posts: 29
Joined: Wed Nov 25, 2015 4:54 pm
Location: Vancouver, BC

Re: Chevy Bolt begins production “in just a few short months

Wed Jan 13, 2016 10:23 am

No OC in Canada, traditional balloon payment loans only.

brorob
Gold Member
Posts: 97
Joined: Sat Oct 31, 2015 5:53 am

Re: Chevy Bolt begins production “in just a few short months

Sat Jan 16, 2016 7:30 pm

When I was shopping around for an EV, the Nissan dealer told me that they offered customers a free battery pack upgrade (next version, about $5k) if they paid the residual amount for their LEAF at the end of their lease.

Womder if BMW will do something similar when the new longer range battery pack is available. Would make a lease end purchase more enticing.

i3an
Posts: 117
Joined: Tue Oct 14, 2014 1:09 pm
Location: San Francisco

Re: Chevy Bolt begins production “in just a few short months

Sun Jan 24, 2016 6:29 pm

Here are the specs that GM has posted on the upcoming Chevy Bolt:
http://media.chevrolet.com/media/us/en/ ... lt-du.html

If GM is to be believed, compared to today's i3 the Bolt will have 2½ times the range for about $10,000 less; be longer (by 7", bad) and slightly narrower and higher (good); be faster to 60 mph (very good) but have a wider turning circle (bad). In the who-cares department it will have a much heavier battery, zero carbon-fiber and much less exotic light metals. It looks likely that slinky Tesla is about to be pipped at the post in the $30k/200-mile BEV sweepstakes by dowdy old GM. The real-world 2016 Volt is getting glowing reviews, and who knows, in the Bolt maybe the gals and guys running GM today just might beat low expectations and deliver something worth trading in a Tesla or a BMW for. Stay tuned.

alohart
Posts: 931
Joined: Sat Nov 01, 2014 7:36 pm
Location: Honolulu, HI

Re: Chevy Bolt begins production “in just a few short months

Mon Jan 25, 2016 12:31 am

i3an wrote:In the who-cares department it will have a much heavier battery, zero carbon-fiber and much less exotic light metals.

I care! All three contribute to the Bolt's porkiness. At ~900 lb. heavier than an i3 BEV, it will not be as efficient or nimble. Without the i3's carbon fiber and aluminum, it will be subject to corrosion in salty, humid climates like ours. With its crude twist beam rear suspension, it will not handle as well as the i3. Its front wheel drive will increase its turning circle and front wheel tire wear, and will likely result in undesirable torque steer. These are reasons why I was willing to pay so much for an i3. But I understand why Chevrolet had to cut corners to keep costs down.
Aloha,
Art

2014 BMW i3 Arravani Grey, Giga World, Tech + Driving Assist, Parking Assist, DC Fast Charging, JuiceBox EVSE

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