G70 Lease Comparisons and Discussion (USA)

[skroonigan]

I still have to work out all my numbers to properly post them.. but got my Manual 2.0t Sport for $360 a month(36/10) with $2300 towards the car from a trade-in. The car had been sitting on the lot all year and I think they were just happy to get rid of it.

 

[skroonigan]

Everything I said and only 123 miles on it. I just bought a 2020 Tucson for my wife that we brought in for some work, my salesman gave me this to drive while I waited.

Yeah that's a smoking deal (for a Genesis, typically they don't lease very well).

 

[Terdbath]

2019 G70 Advanced AWD 3.3T MSRP 47,010
36mo 10k mile lease, 0 down
$345 month
Taxes everything included

What do you think?

This is by far the lowest lease payment for a 3.3 I've seen with zero down.

 

[mandwer]

2019 G70 Advanced AWD 3.3T MSRP 47,010
36mo 10k mile lease, 0 down
$345 month
Taxes everything included

What do you think?

This is by far the lowest lease payment for a 3.3 I've seen with zero down.

Take it. Looks like a solid deal. Can I ask what dealer?

 

[KyJoe340]

If I don't buy I'll name the dealer. Might be a bit of an impulse buy but it's such an awesome car.

 

[TurtleBoy]

If I don't buy I'll name the dealer. Might be a bit of an impulse buy but it's such an awesome car.

If you do buy then you can also name the dealer.

 

[KyJoe340]

Ha, yes. They had several 2019's

 

[brucek]

It seems to me with current lease incentives that I am better off leasing over buying for a 2019 G70. The numbers I am looking at are:
MSRP for 2019 3.3T AWD Sport = 52645
Sell price = 48378
Acquisition fee - 750
Cash = 7000 ( 5000 Hyundai lease cash + 1000 2019 year-end + 1000 competitive for Lexus owner?
15K miles yr @ 36 months
residual = 45% = 23690
lease = 626 mo (539 depreciation + 36 service + 52 state tax)
0 down - (first payment, aquisition fee, & $275 for tags/documentation) $1666 total comes off the $700 lease cash.

Does this deal seem correct/reasonable?

 

[TurtleBoy]

It seems to me with current lease incentives that I am better off leasing over buying for a 2019 G70. The numbers I am looking at are:
MSRP for 2019 3.3T AWD Sport = 52645
Sell price = 48378
Acquisition fee - 750
Cash = 7000 ( 5000 Hyundai lease cash + 1000 2019 year-end + 1000 competitive for Lexus owner?
15K miles yr @ 36 months
residual = 45% = 23690
lease = 626 mo (539 depreciation + 36 service + 52 state tax)
0 down - (first payment, aquisition fee, & $275 for tags/documentation) $1666 total comes off the $700 lease cash.

Does this deal seem correct/reasonable?

What many have/will do given the lease cash that has been available as well as the extremely low MF is lease and then buy out out the lease either early or at the end of the lease.

 

[brucek]

What many have/will do given the lease cash that has been available as well as the extremely low MF is lease and then buy out out the lease either early or at the end of the lease.

I already plan to do the same thing. I ran the buy vs lease numbers and it just makes sense to lease and then in 36 months we get to decide if we are happy with the decision and buy it out. I do not see any incentive to buy out early.

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[pulsar]

What many have/will do given the lease cash that has been available as well as the extremely low MF is lease and then buy out out the lease either early or at the end of the lease.

Pretty much what I’m doing. Pay off balloon lease at 30 days, no acquisition fee, no re-tittle name change, don’t have to monkey with nothing basically and cost me roughly $80 or so for one month finance charges on the price of the car. An electronic payment to Genesis Finance and done. I love the car and did not want monthly payments.

 

[TurtleBoy]

I already plan to do the same thing. I ran the buy vs lease numbers and it just makes sense to lease and then in 36 months we get to decide if we are happy with the decision and buy it out. I do not see any incentive to buy out early.

In most cases there are none but in some states buying out very early gets around the "double" taxation issue. Some folks also don't want to have a monthly payment so there is a psychological return to doing it.

 

[brucek]

In most cases there are none but in some states buying out very early gets around the "double" taxation issue.

I am in PA, so you pay tax on the monthly lease payment, and then if you buy the vehicle you pay on the purchase price. The truth is the decision does not even seem close. Tell me if my math is wrong here:
sell price = 48378 -2000 Year-end cash = 46378 *1.06 tax = 49160 (price paid for car and tax, not counting documentation, tags, etc)

Lease = 35 payments of 626 = 21910 (first payment covered in the 7K lease cash.
residual = 23690 * 1.06 (tax) = 25111 total to buy car after lease

The total cost to lease and buy = 21910+25111 = 47021 < 49160 buy outright.
Buying now would get 60 months of 0% interest. After 36 months if I finance the residual for 24 months, it seems like interest would certainly still cost less than the lease savings.
From what I can tell lease makes the most sense.

 

[TurtleBoy]

I am in PA, so you pay tax on the monthly lease payment, and then if you buy the vehicle you pay on the purchase price. The truth is the decision does not even seem close. Tell me if my math is wrong here:
sell price = 48378 -2000 Year-end cash = 46378 *1.06 tax = 49160 (price paid for car and tax, not counting documentation, tags, etc)

Lease = 35 payments of 626 = 21910 (first payment covered in the 7K lease cash.
residual = 23690 * 1.06 (tax) = 25111 total to buy car after lease

The total cost to lease and buy = 21910+25111 = 47021 < 49160 buy outright.
Buying now would get 60 months of 0% interest. After 36 months if I finance the residual for 24 months, it seems like interest would certainly still cost less than the lease savings.
From what I can tell lease makes the most sense.

PA is not a state that has possible double taxation since it taxes the monthly lease payments. Some states, I believe at least Virginia and Texas the list is shrinking, charge sales tax on the entire sales price of the vehicle when the lease is signed. In some that tax that way, if certain criteria is not met when purchasing the vehicle off lease then sales tax needs to be paid again. I have not looked into the details, just relaying what others have posted.

 

[EdP]

PA is not a state that has possible double taxation since it taxes the monthly lease payments. Some states, I believe at least Virginia and Texas the list is shrinking, charge sales tax on the entire sales price of the vehicle when the lease is signed. In some that tax that way, if certain criteria is not met when purchasing the vehicle off lease then sales tax needs to be paid again. I have not looked into the details, just relaying what others have posted.

From the state POV is makes sense as they are losing income on a lease. If you buy a car you pay tax on the sale amount, let's say 50k. Paid up front at registration. Couple of years later, you trade it in and the dealer sells in to buyer #2 and that buyer pays tax again on a 25k used car. State is happy. They got paid on a total of 75k in sales.

If you lease and pay tax only on the monthly payment, state loses money on the value of the rest of the car. They miss that big up front number and get only the lease value dragged out over three years. Second owner only pays tax only on residual value. State is not happy. They lost $1500 up front if the residual is 25k.

That additional tax will add about $40 to the payment making leasing a bit less attractive.

I can see a couple of things possibly happening. 1. More states going to the double tax rules. 2. A major leasing company or car makers taking it to court.

 

[TurtleBoy]

If you lease and pay tax only on the monthly payment, state loses money on the value of the rest of the car. They miss that big up front number and get only the lease value dragged out over three years. Second owner only pays tax only on residual value. State is not happy. They lost $1500 up front if the residual is 25k.

That additional tax will add about $40 to the payment making leasing a bit less attractive.

I can see a couple of things possibly happening. 1. More states going to the double tax rules. 2. A major leasing company or car makers taking it to court.

That is not how it works in regards to double taxation. In those few states the entire sales price is taxed and then if certain criteria is not met the residual is taxed again.

Edit: Never mind. You are saying they should double tax, I misread.

 

[Mcc]

I don’t think Texas taxes double but perhaps someone who thinks it does can provide a citation.

as for Virginia, “At lease termination, if the lessee retains the vehicle, the vehicle must be re-titled in the name of the lessee. Motor Vehicle Sales and Use Tax (MVSUT) will be assessed based on the residual value paid by the lessee to the lessor”. So it’s just on the residual value. I suspect the tax is calculated on the lease payment, ie the portion of the car you are leasing. Virginia Department of Motor Vehicles

Just trying to keep this whole double taxing thing based on some facts. Not saying my data is necessarily correct.

 

[TurtleBoy]

I don’t think Texas taxes double but perhaps someone who thinks it does can provide a citation.

as for Virginia, “At lease termination, if the lessee retains the vehicle, the vehicle must be re-titled in the name of the lessee. Motor Vehicle Sales and Use Tax (MVSUT) will be assessed based on the residual value paid by the lessee to the lessor”. So it’s just on the residual value. I suspect the tax is calculated on the lease payment, ie the portion of the car you are leasing. Virginia Department of Motor Vehicles

Just trying to keep this whole double taxing thing based on some facts. Not saying my data is necessarily correct.

You are not correct in your interpretation. The residual is being taxed but when the lease was signed they sales tax was based on the sales price of the vehicle and not the just the lease payments.

 

[Mcc]

You are not correct in your interpretation. The residual is being taxed but when the lease was signed they sales tax was based on the sales price of the vehicle and not the just the lease payments.

Sorry but I still don’t get it. In Virginia, here is the complete reference:

• At lease termination, if the lessee retains the vehicle, the vehicle must be re-titled in the name of the lessee. Motor Vehicle Sales and Use Tax (MVSUT) will be assessed based on the residual value paid by the lessee to the lessor, unless the lessee is exempt (see below). Plates may be transferred if agreed to by the lessor.
• Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee's name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again.

So again, no double tax?

 

[TurtleBoy]

Sorry but I still don’t get it. In Virginia, here is the complete reference:

• At lease termination, if the lessee retains the vehicle, the vehicle must be re-titled in the name of the lessee. Motor Vehicle Sales and Use Tax (MVSUT) will be assessed based on the residual value paid by the lessee to the lessor, unless the lessee is exempt (see below). Plates may be transferred if agreed to by the lessor.
• Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee's name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again.

So again, no double tax?

You are looking at the wrong end of the deal. In Virginia the sales tax on a lease is based on the sales price of the vehicle and not just the payments for the lease. So in the beginning the person pays tax on the full price of the vehicle. When they purchase off the lease they may be responsible for paying the sales tax on the residual amount just like you noted in your bold statement. There are conditions for the sales tax exemption from what I remember reading.

Edit: I found some info on that, it looks like it is from the source you quoted but perhaps forgot to include:

• Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee's name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially. Purchases made through another dealer will disqualify the lessee from receiving the exemption from Motor Vehicle Sales and Use Tax (MVSUT). The title must include an individual named on the lease. The lease must be to a person or persons, and it shall not include any commercial entity as a lessee.

https://www.dmv.virginia.gov/vehicles/leased.html