Anybody uses a lease cash offer and buyout their lease contract?

[SilverNitrate]

Hi All,

Has anybody tried to lease a genesis and take advantage of the 5500 lease cash bonus, then buyout their lease contract early to take advantage of the big discount as supposed to just purchasing directly?

 

[Mcc]

Hi All,

Has anybody tried to lease a genesis and take advantage of the 5500 lease cash bonus, then buyout their lease contract early to take advantage of the big discount as supposed to just purchasing directly?

I have. Worked fine.

 

[Nobody]

I just purchased about a month ago. Was able to see the buyout price on the Genesis finance site about two weeks after purchase. Pull down a link, request buyout price, and all details of where to send the payment included.

I’ve been considering buyout now (paying from savings) or leasing for 3 years while saving extra monthly to pay the residual at the end.

 

[SilverNitrate]

I just purchased about a month ago. Was able to see the buyout price on the Genesis finance site about two weeks after purchase. Pull down a link, request buyout price, and all details of where to send the payment included.

I’ve been considering buyout now (paying from savings) or leasing for 3 years while saving extra monthly to pay the residual at the end.

Did you take advantage of the 5500 lease cash? If so, I would buy it out. If you wait 3 years, you basically wash the 5500 deal and paid over MSRP in the end once you add up all the interest charges you paid for those 3 years.

 

[Nobody]

Yes, I did take the lease cash & will likely take the advice — thanks!

 

[pmckechnie]

What is this "5500 lease cash bonus " and how does it work. How would I know if I can get it, or do I want it if I can get it.
This is my first lease. Have always paid cash for cars but was talked into a lease and buy out at the end of the lease.
Thanks

 

[BlancaGenny]

Many individuals took advantage of the $6200-$6500 lease cash on the Stinger and later did a buyout. With other offers, they got around $7k off of the vehicle. For a GT2, that would be a final price of $45k. If Genesis does the same, it's almost clockwork to go that route, unless you haggle over $7k off MSRP. Good luck with that..

 

[SilverNitrate]

What is this "5500 lease cash bonus " and how does it work. How would I know if I can get it, or do I want it if I can get it.
This is my first lease. Have always paid cash for cars but was talked into a lease and buy out at the end of the lease.
Thanks

In a nutshell this is how it works. You negotiate your sale price before any rebates. Once you've settled on a sale price, you tell them you want to lease the car to take advantage of the lease cash offer (Make sure they are offering it) to further discount the car. Ex. The stinger is 52k for the top end model. You were able to negotiate it down to 50k. The lease cash offer they had was 7200 + 1k manufacturer's Rebate. So you take 50k-7200-1k = 41800 for the car. So you lease the car, but once the paperwork is in the system kmf for kia and hmf for hyundai, (usually this takes about a week) you request to buy out the lease for the 41800 residual value. In the end you purchase the car for 41800 compared to a finance rebate of just 3k. You're saving another 5k off the car. Of course this is in the most simple term, I didnt include any down payment, first month payment, taxes, rent charge or buyout fee (300) for kia, but I hope you get the idea behind it. The lease term doesnt really matter since you are buying out the ease after a week. So is the interest charge since you only get charge interest based on the number of days the car is on lease which in this case maybe 100 or so. Just make sure you buy out the lease once your paper work is in their system. The longer you wait the smaller the lease cash value becomes because of the interest you pay each month. If you fulfill the lease agreement then the lease cash is washed out and you may end up paying more than msrp. It only works if you can pay the car in full.

 

[Mcc]

This even works if you buyout the lease with money you borrow from a credit union for example. As long as you get a better interest rate than the lease money factor and the incentives for leasing are better than those for financing. Of course buyout with cash is always best since there is no interest (except the lost opportunity investing that money).

 

[kmooney4]

This even works if you buyout the lease with money you borrow from a credit union for example. As long as you get a better interest rate than the lease money factor and the incentives for leasing are better than those for financing. Of course buyout with cash is always best since there is no interest (except the lost opportunity investing that money).

Example, tell me if I'm correct: A $50,000 final price Mustang is my vehicle for example.

1) I can finance the car and pay $50k plus whatever the interest is.
2) I can lease it, get $5,500 taken off the price for a final price of $44,500 and then buy the lease out a week later financing through my credit union.

Option 1 says I pay over $50k for the Stang. Option 2 says I pay well under $50k for the same car. This is insane. How do they allow this? I would think that as soon as you go to buyout the lease they take the lease cash offer back....

Also, when you buyout the lease can you finance it through the dealer or a credit union? Or does it have to be a credit union?

How common are these lease cash back offers?

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[SilverNitrate]

Example, tell me if I'm correct: A $50,000 final price Mustang is my vehicle for example.

1) I can finance the car and pay $50k plus whatever the interest is.
2) I can lease it, get $5,500 taken off the price for a final price of $44,500 and then buy the lease out a week later financing through my credit union.

Option 1 says I pay over $50k for the Stang. Option 2 says I pay well under $50k for the same car. This is insane. How do they allow this? I would think that as soon as you go to buyout the lease they take the lease cash offer back....

Also, when you buyout the lease can you finance it through the dealer or a credit union? Or does it have to be a credit union?

How common are these lease cash back offers?

Essentially...yes, not taking into account taxes and fees. On a lease, what you need to look out for is the Money Factor (interest). Some manufacturers like KIA offer absolutely ridiculous lease cash offer, but the Money Factor is also high (around 4.5% even for people with great credit). Now that's high compare to financing a vehicle with let's say 0.9%. This is how they balance things. Other manufacturers will give you small lease cash, but their money factor is also very low. However, if you hare buying out the lease after a week, you'll only pay interest for that week that you leased the vehicle. So in the end it's still a better value than to finance the car.

 

[Joemari72]

Im conscidering doing this exact deal this week for a G90. Any reason I wouldnt be able to buy out the lease in a week or 2? There is no clause that you must maintain the lease for a minimum amount of time is there?

 

[larrymg1]

usually this takes about a week) you request to buy out the lease for the 41800 residual value.

Confused. The 41800 example is the adjusted capitalized cost, not the residual? Correct? Wouldn't the residual be the difference between the adjusted capitalized cost minus payments?

 

[Mcc]

Confused. The 41800 example is the capitalized cost, not the residual? Correct? Wouldn't the residual be the difference between the capitalized cost minus payments?

Leases are confusing so you are in good company. Never try to calculate the residual. They must spell it out for you in writing. If you buy out the lease you pay all the payments and interest and residual. If you wait until the lease end and have already made all the payments then it’s just the residual.

There is no minimum time to hold the lease although you probably need to wait a few week for the lease paperwork to go through and for them to set up you lease account. There is also a small lease end fee.

 

[Nobody]

Im conscidering doing this exact deal this week for a G90. Any reason I wouldnt be able to buy out the lease in a week or 2? There is no clause that you must maintain the lease for a minimum amount of time is there?

It took ~2 weeks for me to see a buyout quote online @ Genesis Motor Finance. Pulled the buyout quote, wrote a check, and called it good. No issues.

 

[larrymg1]

It took ~2 weeks for me to see a buyout quote online @ Genesis Motor Finance. Pulled the buyout quote, wrote a check, and called it good. No issues.

I have had my lease 4 months and I don't find anywhere on my GMF account where it shows a buyout quote?
Correction: I found the buyout information as a sub-menu under the payments heading.
OK, so what does my buyout show:
Buyout Information:
*Buyout Information: You must visit a Genesis dealer to complete your purchase due to regulations in your state. This Buyout Amount is based on the Vehicle Registration Address and may include, but is not limited to the purchase price, past due amounts, taxes, and other amounts set forth in your lease agreement."
Isn't that just grand? So in SC, I have to contact my dealer to obtain buyout information. Not necessarily bad. Unless this allows the dealer to manipulate the numbers. I may contact my dealer just to see what they quote and if there is any padding of the buyout amount.

 

[larrymg1]

Leases are confusing so you are in good company. Never try to calculate the residual. They must spell it out for you in writing. If you buy out the lease you pay all the payments and interest and residual. If you wait until the lease end and have already made all the payments then it’s just the residual.

There is no minimum time to hold the lease although you probably need to wait a few week for the lease paperwork to go through and for them to set up you lease account. There is also a small lease end fee.

I don't find leases confusing at all. I have leased several dozen cars over the years.
My confusion centers around the previous example where I think @SilverNitrate is mixing up the adjusted capitalized cost vs residual value. An early term buyout I believe would be the adjusted capitalized cost plus fees, not the residual value. Unless I am missing something?

 

[Mcc]

I don't find leases confusing at all. I have leased several dozen cars over the years.

So you are sitting at the dealer trying to close the deal. How do you calculate the money factor yourself to see if what the dealer told you it was is true. Nowhere is it written on the lease. Also how do you at the dealer calculate what the dealer’s profit is on the car lease. Please tell me your secret so I can learn.

 

[Nobody]

MCC — not sure if you’re being facetious, but when I started leaning towards leasing for my deal, I leveraged this site: Leasing Tutorial Home

LarryMG1 — the buyout from Genesis finance = lease payments + residual value. Lease payment was (payment x months of lease) & residual value was from my lease paperwork from dealer.

Hope this is helpful.

 

[larrymg1]

MCC — not sure if you’re being facetious, but when I started leaning towards leasing for my deal, I leveraged this site: Leasing Tutorial Home

LarryMG1 — the buyout from Genesis finance = lease payments + residual value. Lease payment was (payment x months of lease) & residual value was from my lease paperwork from dealer.

Hope this is helpful.

I understand on the buyout from Genesis.
If you review my previous post, GMF will not provide a buyout due to SC state regulations. I have to contact my dealer to get a buyout figure.
Additionally, the dealer apparently is not restricted in how they calculate the buyout.
"This Buyout Amount is based on the Vehicle Registration Address and may include, but is "not limited" to the purchase price, past due amounts, taxes, and other amounts set forth in your lease agreement."