$7500 back on a lease??

[Sev]

So, I just cruised through this one for a quick second, nothing here is out of the ordinary --- In my experience, requiring a down payment has more to do with getting the payment into a certain tier or qualifying a borrower as long as no additional fees were added to the trasaction. Of course, more DP also means less rent charge applicable, but that's to be expected.

Here is what I see ---

Upfront charges of $1567 are $750 Acquisition Fee (I've seen this as low as $400 and as high as $800, but I believe the number is actually set by HMF) + $700 license fee (state specific, you can confirm it's accuracy) and $85 doc fee (great, our dealers charge generally whatever the state allows ~$400). no alarms here

Total amount applied up front is $2308.30 which is your first month's payment of $741.30 + the number above. Again, nothing wrong here.

Cash Down: $8312 + $7500 = $15812. That - $2308.30 = $13503.70. This number matches your total cap reduction. All good here.

Go back to your total price before any of the above --- $61,031.75 which is prior to fees and taxes on your down payment total of $1111.25 and fee of $41.75. Those taxes look to be ~7% of your down payment. If your taxes in your state are close to that, safe again.
This leaves you with the remaining balance of $48,639.30 which is your total minus your cash down and your $7500.

If you didn't get the $7500, your bill would have been $56,139.30. If you work backwards, the difference between your total ACC and your bill had you not received the $7500, is $56,880.30 - $7500 - first months payment which you are making ($741) = $48,639.30. Spot on.

This deal shakes out to what you would have paid before the $7500 minus that credit. No hidden fees. Someone feel free to check my math.

Thanks so much for the detailed and quick response on this! You broke it down so well - major kudos!

 

[sakerror]

The 52% residual (doesn't really matter much if you are buying out immediately because the ACC is the purchase number) comes from a calculator that Hyundai uses. It takes into consideration miles, months, and purchase price.

My questions:

1) Down Payment of $6000, what's that for or did you optionally just decide that or to pay your taxes, etc

2) Capital Cost Reduction. Same as above for #1. Is that the difference between taxes and your optional down payment.

1) the initial offer states 6000$ as down payment although on the website, i had the option to change it. That's why i asked you if i make a larger deposit or not.

Now i have a question not related to this subject but to the car itself, are you happy with the GV60? I just have doubts regarding the after sales services and any potential problems with the car.

 

[acadapter]

1) the initial offer states 6000$ as down payment although on the website, i had the option to change it. That's why i asked you if i make a larger deposit or not.

Now i have a question not related to this subject but to the car itself, are you happy with the GV60? I just have doubts regarding the after sales services and any potential problems with the car.

I drive my GV60 everyday in lieu of my Model X. Yes, partly because it's newer but it's more overall comfort. Zero complaints and completely sold on the eGMP platform.

 

[sakerror]

I drive my GV60 everyday in lieu of my Model X. Yes, partly because it's newer but it's more overall comfort. Zero complains and completely sold on the eGMP platform.

So i just came back after visiting the dealership, The MSRP for this Advanced Trim is 61,205$

Included Special "HIMALAYAN GRAY" color (575$).
To Be honest i was positively shocked how this color looks in real life. It is really amazing! Way underrated online!
The contrast is incredible!

It comes with additional included features worth (215$) as: Wheel locks, Rear Bumper Appliqué, First Aid Kit

i have the options to choose between a minimum of 6,847.75$ downpayment all the way up to 22,500$ maximum.

They told me the money FACTOR is set by Hyundai Motors and it is 0,0027 and the Residual Value (52%)

Lease term for 36months

1st option: 6,647.75$ Downpayment / 736.68$ per month

2nd option: 22,500$ Downpayment / 286.82$ per month

I think i will go with the second option as i will be buying out back the lease in a matter of days or weeks.

 

[pippa]

Not a lease guy, but couldn't you just take the lease $ and then buy car after a few months or are you locked in for 3 years?

right, this is what I was thinking. I'm not a lease guy either, but if I could lease it and then do the buyout--and save the 6500--that seems like something worth pursuing.

now if only I could find a GV60 nearby...

 

[acadapter]

right, this is what I was thinking. I'm not a lease guy either, but if I could lease it and then do the buyout--and save the 6500--that seems like something worth pursuing.

now if only I could find a GV60 nearby...

That's what we are advising folks to do.

 

[sakerror]

That's what we are advising folks to do.

Did you have any problems regarding the phantom parking break? Or even the sudden break during driving the car? The video on youtube made me worried.

 

[acadapter]

Did you have any problems regarding the phantom parking break? Or even the sudden break during driving the car? The video on youtube made me worried.

None in my current 6000mi

 

[Sev]

So I'm still trying to finalize a deal on a GV60 mainly to take advantage of the $7500 credit offer and then do an early buyout. But I still wanted to compare against some other quotes and this one threw me for a loop. The lease numbers completely confuse me so I'm hoping someone here can help me better understand this! The first screenshot is of my GV60 quote with a net cap cost of $54K (after the $7500 credit being applied) while the second screenshot is a quote from BMW with a selling price of $59K.

How is it possible that the BMW quote has a monthly payment that is less than my GV60 quote when the BMW has a higher selling price? Is it really because of the lower RV and MF on the BMW making the difference?

 

[voxel]

So I'm still trying to finalize a deal on a GV60 mainly to take advantage of the $7500 credit offer and then do an early buyout. But I still wanted to compare against some other quotes and this one threw me for a loop. The lease numbers completely confuse me so I'm hoping someone here can help me better understand this! The first screenshot is of my GV60 quote with a net cap cost of $54K (after the $7500 credit being applied) while the second screenshot is a quote from BMW with a selling price of $59K.

How is it possible that the BMW quote has a monthly payment that is less than my GV60 quote when the BMW has a higher selling price? Is it really because of the lower RV and MF on the BMW making the difference?

With the BMW you are paying $5K down. There's no $7500 cap reduction except on the i4 e35 trim. At $61K... that's not overly well trimmed. A loaded i4 is better than GV60 IMO but a lower trim... I'd pass.

The GV60 deal looks weird. It says $9K due at signing but if that's true.. they didn't give you the $7500 off. MF is higher but if you buyout it doesn't matter.

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[Sev]

With the BMW you are paying $5K down. There's no $7500 cap reduction except on the i4 e35 trim. At $61K... that's not overly well trimmed. A loaded i4 is better than GV60 IMO but a lower trim... I'd pass.

The GV60 deal looks weird. It says $9K due at signing but if that's true.. they didn't give you the $7500 off. MF is higher but if you buyout it doesn't matter.

The BMW is actually for a fully spec'd 3 series haha, not a direct competitor but that explains the price point. I was also told by the BMW salesperson that the $5K includes the first month's payment, taxes & fees, and then around $2K in "total cap reduction" - although I'm not sure what this truly means and assume that this is just the down payment.

The way I read the GV60 quote is that even though it says $9,500 due at signing, I would only pay $2K after the $7,500 credit is deducted. I would absolutely not move forward with the GV60 if they were expecting me to pay $9,500 upfront...

 

[SaratogaLefty]

I think you are okay and better off with the GV60. First of all the $9.5K due at signing is the $2000 cash down payment plus the $7500 rebate, so you will drive off for only $2000 down. The $9500 is reduced to $7142.05 because they deduct the first month's payment plus doc fees, license fees, and sales tax on the $9500 (it looks like your sales tax rate is 5.9%??). Anyway, the differences between the GV60 lease and the BMW are clearly due to the much lower MF on the BMW and also the higher down payment ($5000 vs. $2000). Not sure what the residual is on the BMW, but as Voxel said, the MF and Residual really don't matter if you are going to do the Buyout. When you do the Buyout on the GV60 your cost should be the Adjusted Cap Cost of $$54228 plus sales tax on that amount of $3200 (if my assumption of 5.9% is correct). So your total out of pocket should be roughly $57,428 plus the original $2000 you put down in cash, total $59,428. I say roughly cause they will also probably add some interest from the second monthly payment. I believe this should be pretty close.

 

[voxel]

The BMW is actually for a fully spec'd 3 series haha, not a direct competitor but that explains the price point. I was also told by the BMW salesperson that the $5K includes the first month's payment, taxes & fees, and then around $2K in "total cap reduction" - although I'm not sure what this truly means and assume that this is just the down payment.

The way I read the GV60 quote is that even though it says $9,500 due at signing, I would only pay $2K after the $7,500 credit is deducted. I would absolutely not move forward with the GV60 if they were expecting me to pay $9,500 upfront...

I last test drove a M340 xDrive in December and loved the B58 engine. That car would be a hoot in canyons and track days.

As a daily? No thanks. Especially with premium fuel and maintenance.

Most EVs are a big hefty and not overly fun to toss around but as a daily... there are awesome.

 

[steveinarizona]

I last test drove a M340 xDrive in December and loved the B58 engine. That car would be a hoot in canyons and track days.

I drove one a year ago at the BMW autocross event in Scottsdale. It was a hoot! But I will stick with a BEV. BMW does know how to make a good driver's car. The electric replacement for the three series (new I3) could be a very interesting vehicle.

 

[Jlapaglia]

Amazing post and effort! Thank you!

Would you please help me with this offer? i got it online, i knew you have a GV60, what is your opinion about the initial PRICE and the residual value around 52%? Do i proceed with this lease and i buyout in cash later? or you think i can negotiate anything better?

Base Model $59,290
Packages and Options
$130

• Wheel Locks $85
• First Aid Kit $45

Manufacturer Destination Charge $1,125
MSRP (Sticker Price) $60,545
Genesis of Dublin Price $60,545
Manufacturer Rebate -$7,500
Total Purchase Price $53,045
LEASE SUMMARY Term 36 months

Annual Mileage 10,000
Residual Value (52%) $31,483
Total Due At Signing $6,000

• First Payment $817
• Capitalized Cost Reduction $3,389
• Estimated Registration & Fees $724
• Sales Tax $1,070

Monthly Payment
$816.73

Did anybody look at this scenario? I admit that I am not great with lease calculations but I can’t see where they are deducting the $7,500 based on what was provided here.

Total payments + cap reduction + residual = $64,284

If he got the purchase prices of $53,045 and residual of 31,483 (plus down payment, taxes and registration) shouldn’t payments be roughly $550 + interest? Is interest really that high?

 

[voxel]

Did anybody look at this scenario? I admit that I am not great with lease calculations but I can’t see where they are deducting the $7,500 based on what was provided here.

Total payments + cap reduction + residual = $64,284

If he got the purchase prices of $53,045 and residual of 31,483 (plus down payment, taxes and registration) shouldn’t payments be roughly $550 + interest? Is interest really that high?

It is that high. My Ioniq 5 Limited 10K/36 with $1.5K down is $930/month for a $58K car with no add ons and no dealer fee. This is with the $7500 off so my adjusted cap cost is $52K. $1K a month lease for a $60K sounds about right… sadly.

 

[sakerror]

None in my current 6000mi

Guys, i need your help regarding insurance, the dealer forced me to buy one when leasing the car but the price was extremely high, i had no option since i am using my international driving license. My question, can i cancel it and request a refund? Would it be a full refund? or I already lost the first month?!

 

[acadapter]

Guys, i need your help regarding insurance, the dealer forced me to buy one when leasing the car but the price was extremely high, i had no option since i am using my international driving license. My question, can i cancel it and request a refund? Would it be a full refund? or I already lost the first month?!

We would need to see what you bought to be able to parse the language - time is also ticking. Most cancellations (in full, if allowed) are within 30-60 days. Outside of that would be prorated.

 

[Sev]

I think you are okay and better off with the GV60. First of all the $9.5K due at signing is the $2000 cash down payment plus the $7500 rebate, so you will drive off for only $2000 down. The $9500 is reduced to $7142.05 because they deduct the first month's payment plus doc fees, license fees, and sales tax on the $9500 (it looks like your sales tax rate is 5.9%??). Anyway, the differences between the GV60 lease and the BMW are clearly due to the much lower MF on the BMW and also the higher down payment ($5000 vs. $2000). Not sure what the residual is on the BMW, but as Voxel said, the MF and Residual really don't matter if you are going to do the Buyout. When you do the Buyout on the GV60 your cost should be the Adjusted Cap Cost of $$54228 plus sales tax on that amount of $3200 (if my assumption of 5.9% is correct). So your total out of pocket should be roughly $57,428 plus the original $2000 you put down in cash, total $59,428. I say roughly cause they will also probably add some interest from the second monthly payment. I believe this should be pretty close.

Just requested my buyout this morning and you were pretty much spot on, thanks!

 

[sakerror]

Does anyone know when HMF will send me the email to access their website? I've started the lease last Wednesday March 29th