Genisis Pricing and Leasing

[stjohnson]

Genesis Pricing and Leasing

Hello all,

I've been reading this forum for about a week and it has convinced me to go out and test drive a Genesis. I was very impressed with the drive. My present lease is up and fortunately for me I get to shop for cars on the last month of the quarter. I find myself inextricably attracted to the Tech package models.

So my question to current owners (especially those in/around Texas, and Ideally those with the Tech package) is what price have you been able to negotiate to before TTL? (obviously on the V6) I'm expecting to be able to push to right around invoice of 37.

Also, since when leasing the primary concern is residual not primarily topline cost, what residual have you guys/gals been agreeing to after your term (24/36/39 months)?

Have they been giving good money factors on the Genesis? I'm expecting something with at least .0008 or better, but just curious what your dealers have been pushing.

Thanks for any insight. I'm looking to take advantage of the herd's knowledge to try and negotiate the best deal possible. I like to have my ducks in a row before even thinking about talking to a sales associate.

 

[ecommando]

Hyundai needs to give .09% interest like BMW. After seeing how much Genesis would cost with Hyundai interest rates, I hesistated for a little. I went ahead anyways.

 

[kbmuenkel]

stjohnson - .9% financing was being offered through today, August 31 in certain states. There was a thread in these forums listing those states. Unfortunately, PA was not one of them with my rate being higher.

The low lease money factor was being offered on a very narrow lease term of 24 months only. When I bought my Genesis in July, I compared both and chose to buy the car instead of leasing it. The residual quoted for 24 months with 12k miles each year was .66.

The Technology Package IMO is the only way to go. The TP is so rich in feature/benefits I cannot imagine why anyone would pass on this with the only exception being price.

To check the current incentives; rates by zip code and lease offers, go to Hyundai's website and poke around.

You will love this car. Good luck and return here with all the details along with pictures.

 

[stjohnson]

Thanks for the info. .9% is a good incentive finance rate. I would expect they will still honor it at the quarter end at dealerships even if the fine print says expires in August. The incentives are always to get cars out the door *before* the end of their financial periods. Gotta keep the wheels moving....

But my interests in leasing are 2 fold. 1.) This is a new model and first run make of car for Hyundai. I learned my lesson when the new Audi A4 body style came out in 04. I was first to buy one, and the immediate preceding years many features and enhancements were added that I wished I had. 2.) Financing ~43K even with 0% over 60 months is just too much of a monthly payment for me. I'm not planning on shelling out more than about 4 or 5k down, and that would leave a huge amount to be financed.

If this car is being quoted with a 66% residual at 24 months, that's a fair number. I was hoping for a bit higher, but I think its fair being that this model is so new.

The problem with checking for incentives is that Hyundai is not listing any lease specials on their websites. And dealers are not publishing much info on that front either. It's taking personal calls to the sales guys who won't give you anything but their worst quotes over the phone. So it's going to take onsite visits and face to face meetings with these guys to start getting the real deal numbers.

I'm going to go see a sales associate for round 1 next week and I want to work out some initial numbers. This should give him enough time to locate the car I want and hopefully I can dangle the carrot until the last day of the month.

If anyone else reading this thread has lease info to share please do! I'm still not comfortable with the lease info or what price I should offer. Most times I go in about 2% above invoice as the drive-out price (with TT&L) and have been sucessful negotiating within 1-2% of that price. But not sure if I'll be able to on this car if demand is proving to be too high.

Money factor can be negotiated most times, and if you're getting a great price with a great money factor, please share as it will help us all get a fair deal!

 

[DanTheMan]

Thanks for the info. .9% is a good incentive finance rate. I would expect they will still honor it at the quarter end at dealerships even if the fine print says expires in August. The incentives are always to get cars out the door *before* the end of their financial periods. Gotta keep the wheels moving....

But my interests in leasing are 2 fold. 1.) This is a new model and first run make of car for Hyundai. I learned my lesson when the new Audi A4 body style came out in 04. I was first to buy one, and the immediate preceding years many features and enhancements were added that I wished I had. 2.) Financing ~43K even with 0% over 60 months is just too much of a monthly payment for me. I'm not planning on shelling out more than about 4 or 5k down, and that would leave a huge amount to be financed.

If this car is being quoted with a 66% residual at 24 months, that's a fair number. I was hoping for a bit higher, but I think its fair being that this model is so new.

The problem with checking for incentives is that Hyundai is not listing any lease specials on their websites. And dealers are not publishing much info on that front either. It's taking personal calls to the sales guys who won't give you anything but their worst quotes over the phone. So it's going to take onsite visits and face to face meetings with these guys to start getting the real deal numbers.

I'm going to go see a sales associate for round 1 next week and I want to work out some initial numbers. This should give him enough time to locate the car I want and hopefully I can dangle the carrot until the last day of the month.

If anyone else reading this thread has lease info to share please do! I'm still not comfortable with the lease info or what price I should offer. Most times I go in about 2% above invoice as the drive-out price (with TT&L) and have been sucessful negotiating within 1-2% of that price. But not sure if I'll be able to on this car if demand is proving to be too high.

Money factor can be negotiated most times, and if you're getting a great price with a great money factor, please share as it will help us all get a fair deal!

ST:

I understand your concerns about the actual amount of the monthly payment you'll make after the lease or purchase. In my state (Tennessee), the .9% APR was VERY favorable (over 48 months) making the total interest accrual on the loan about $650! Now THAT'S a deal! Most all of every payment goes toward principle reduction.

When analyziing the terms of a lease vs. purchase, it seems that a lease isn't a good deal for a typical customer, unless you have some business usage that will allow you to write off add'l expenses (mileage, trade costs, etc.). In a lease, (while this may be a little over-simplified), you're basically financing the depreciation over the term of the lease, while being told what your vehicle will be worth at the end of the term--at some point in the future. I can state the obvious that if it favors the dealer to tell you that your car will be worth some particular value at the end of the lease term, that's the number you will get, regardless of what the reality may be. Plus, like so many friends of mine that did a lease--they are ALWAYS concerned about how much they drive--they don't want to go over their mileage allotment. Buying a car--any car--for me means I want to enjoy the ride--without concerns about mileage or other issues. I want to go when and where ever I want to go. I'll take the loss on the trade/sale value when I'm done with this vehicle. I typically buy one and drive it until the wheels fall off anyway! I take care of it along the way, and generally get good returns for the first 200,000 miles or more (barring accidents, major issues, etc.). We'll see how it all goes with this new Genesis. From all accounts, though, most Hyundai owners report relatively low maintenance costs on this make of car, so I'm looking forward very optomistically!

I hope you enjoy your car as much as I am enjoying mine!

Dan :>)

 

[stjohnson]

Thanks for the info, but lets not let this thread go down the to lease or not to lease path. We're all aware of the pros/cons. More interested in pricing others are getting so we can all make the best price negotiations and lease deal.

Thanks!

 

[Simonwpb]

STJ,
I think the deal you negotiate will depend on how motivated the dealer is. There are several factors going on that make the dealer try to negotiate a higher price right now:
1) Limited field inventory, vehicles only started arriving in July
2) Inventory is relatively new on the lot
3) Emotional appeal of the new model
4) Car is a great value even at MSRP
Also Hyundai's pricing strategy is to start low and avoid expensive marketing programs such as subsidized financing, and rebate offers.

That being said you can still negotiate a good deal on a Genesis. You will have to shop multiple dealers and dictate what you are willing to pay.

The Genesis can be yours for two years with $2,199 up front and $399 a month for 24 months." The deal "fares pretty well -- especially when you consider the fact that Hyundai names the Cadillac CTS as a competitor."

Autoblog comments, "It's a deal that undercuts the Cadillac CTS by nearly $150/month, according to a retailer who sells both." The offer applies only to V6-powered Genesis sedans, but "With 80 percent of customers expected to choose the V6 model (we would too), the lease program is bold enough to drive traffic." The offer is available through the end of July.

AutoWeek adds, "A strong residual value from Automotive Lease Guide helped cut the cost of leasing. The Santa Barbara, Calif., company, which sets residual standards for the industry, estimates that a 2009 Genesis will be worth 50 percent of its original sticker price after 36 months."

 

[stjohnson]

Simon, thanks for the info! Very useful and will definitely be able to find use for it when talking to some sales guys.

Regarding your 1-5, you're absolutely right! But this goes for everyone considering buying a car, hyundai or lexus. Money talks! I don't think anyone out there should pay more for a car than what's fair. And a dealer mark up on top of MSRP is far from a fair price! (IMHO; which could be debated but please let's not... ;-)

The main reason people pay more (again IMHO) is because they are just simply impatient. They see the car, fall in love and pay the asking cost. I don't think these consumers generally have more money than the rest, they just see something they like and jump on it. More power to them, but I think this group of buyers really hurt the majority of consumers.

This is partly the reason I started this thread. I need to see what competition I'm up against from other consumers in my area!

When I buy a car, I goto the dealer, offer a fair price and say I need to leave in 10mins. Then goto another dealer in your area and offer the same story. I bet you that 9 out of 10 times you will win the deal. Most times they will counter, and if you're happy with that counter, by all means TAKE IT! But if not, counter-offer and again, don't stay onsite longer than 10-20 mins at a time. Personally, I think that's the secret to buying a car. Ironically, leaving is their motivator to move the deal forward.

This strategy has worked for me countless times. I'm asked somewhat frequently to help my friends buy a car. If you have a fair offer, there's no reason a dealership wanting to move cars wouldn't take it. I definitely won't pay a markup, and that may keep me from acquiring this car in September. But I'm definitely going to give it a go! I'm already getting anxious to try out the ipod interface, and I don't even have the car yet!

Thanks for all the info! I'm really starting to like this car. It's so strange. I would *never* have considered a Hyundai last year, or before. All the sudden they just changed the game. Go Korea, I guess..