$7500 back on a lease??

[Badger]

Hello! I’m eager to finalize things for a GV60 but I’m having a bit of trouble getting the finance contact at my dealership to understand the early buyout concept, he’s saying I’d pay the residual listed on the contract as remaining at lease end, plus all monthly payments, even if I buy out lease in first month. That is what I’d expect for an early RETURN not a buyout. (Instead I’m hoping to get a residual price reflecting a car’s price one month into lease instead of 36 months, and not have to pay the remaining 35 months of lease/rental/interest fees.)

I’ve ready this thread and the original Ionic thread. Expecting to have a second chat with the finance guy on Monday. Is this basic recap right?
———-
Pulled from an online dealer lease page:

Base Model $68,290
Packages $280 (cargo $230, safety kit $50)
Premium Colors and Trims $575
Manufacturer Destination Charge $1,125

MSRP (Sticker Price) $70,270
Dealer-Installed Equipment $990
(Paint & Fab Prot $495, Window Tint $495)
Dealer Discount -$699
Genesis Dealer Price $70,561
Manufacturer Rebate -$7,500
Total Purchase Price $63,061

LEASE SUMMARY
Term 36 months
Annual Mileage 12,000
Residual Value (51%)
$35,838
Total Due At Signing
$2,500

• First Payment
  $1,168
• Capitalized Cost Increase
  -$563
• TAVT$1,895

Monthly Payment $1,167.77
Sales tax includes $1,895.47 (6.6%) state taxes.
Registration & Fees include $47.00 DMV fee, and $699.00 documentation fee.
Security deposit waived. The capitalized cost of your lease is the Dealer’s Price plus $750 lease acquisition fee.
The monthly payment includes TAVT and acquisition fee paid over 36 months, and includes all taxes and fees and any manufacturer rebates. The monthly payment includes a lease acquisition fee of $21.00 ($750 paid over 36 months).
12,000 miles per year with 25¢/mile overage charge.

This is generic generated lease info from the dealer website and doesn’t exactly fit my scenario as I’m buying from the adjacent state and tax/registration will be handled differently. But for the sake of helping me talk to the finance guy these calculations are a place to start.

——
Basically car is $70,561
Minus $7,500 lease rebate is $63,062

Pay $2,500 on signing includes the $1,168 first payment

Not sure where these other bits fit in:
Capitalized Cost Increase: -$563
TAVT $1,895
Monthly Payment $1,167.77
Sales tax includes $1,895.47 (6.6%) state taxes.
Registration & Fees include $47.00 DMV fee, and $699.00 documentation fee.
The capitalized cost of your lease is the Dealer’s Price plus $750 lease acquisition fee.

——
$63,062 lease price after rebate
-$2,500 on signing (includes $1,168 first payment)
=$60,562 Residual price?
——
So would I then expect to pay $60,562 in the next week as the residual price to buyout the lease early and own the vehicle, plus maybe that $750 “lease documentation fee” and $699 “documentation fee”?

Are those documentation and lease fees already wrapped into what I’ve paid on signing? I’m getting properly confused on the capitalization cost increase, TAVT, lease documentation fees, and documentation fees, and unfortunately my husband it’s savy on this stuff either.

Appreciate any help I can get navigating this stuff. Saving most of $7,500 is motivating! Thank you. Can’t wait to get the car.

 

[acadapter]

Hello! I’m eager to finalize things for a GV60 but I’m having a bit of trouble getting the finance contact at my dealership to understand the early buyout concept, he’s saying I’d pay the residual listed on the contract as remaining at lease end, plus all monthly payments, even if I buy out lease in first month. That is what I’d expect for an early RETURN not a buyout. (Instead I’m hoping to get a residual price reflecting a car’s price one month into lease instead of 36 months, and not have to pay the remaining 35 months of lease/rental/interest fees.)

I’ve ready this thread and the original Ionic thread. Expecting to have a second chat with the finance guy on Monday. Is this basic recap right?
———-
Pulled from an online dealer lease page:

Base Model $68,290
Packages $280 (cargo $230, safety kit $50)
Premium Colors and Trims $575
Manufacturer Destination Charge $1,125

MSRP (Sticker Price) $70,270
Dealer-Installed Equipment $990
(Paint & Fab Prot $495, Window Tint $495)
Dealer Discount -$699
Genesis Dealer Price $70,561
Manufacturer Rebate -$7,500
Total Purchase Price $63,061

LEASE SUMMARY
Term 36 months
Annual Mileage 12,000
Residual Value (51%)
$35,838
Total Due At Signing
$2,500

• First Payment
  $1,168
• Capitalized Cost Increase
  -$563
• TAVT$1,895

Monthly Payment $1,167.77
Sales tax includes $1,895.47 (6.6%) state taxes.
Registration & Fees include $47.00 DMV fee, and $699.00 documentation fee.
Security deposit waived. The capitalized cost of your lease is the Dealer’s Price plus $750 lease acquisition fee.
The monthly payment includes TAVT and acquisition fee paid over 36 months, and includes all taxes and fees and any manufacturer rebates. The monthly payment includes a lease acquisition fee of $21.00 ($750 paid over 36 months).
12,000 miles per year with 25¢/mile overage charge.

This is generic generated lease info from the dealer website and doesn’t exactly fit my scenario as I’m buying from the adjacent state and tax/registration will be handled differently. But for the sake of helping me talk to the finance guy these calculations are a place to start.

——
Basically car is $70,561
Minus $7,500 lease rebate is $63,062

Pay $2,500 on signing includes the $1,168 first payment

Not sure where these other bits fit in:
Capitalized Cost Increase: -$563
TAVT $1,895
Monthly Payment $1,167.77
Sales tax includes $1,895.47 (6.6%) state taxes.
Registration & Fees include $47.00 DMV fee, and $699.00 documentation fee.
The capitalized cost of your lease is the Dealer’s Price plus $750 lease acquisition fee.

——
$63,062 lease price after rebate
-$2,500 on signing (includes $1,168 first payment)
=$60,562 Residual price?
——
So would I then expect to pay $60,562 in the next week as the residual price to buyout the lease early and own the vehicle, plus maybe that $750 “lease documentation fee” and $699 “documentation fee”?

Are those documentation and lease fees already wrapped into what I’ve paid on signing? I’m getting properly confused on the capitalization cost increase, TAVT, lease documentation fees, and documentation fees, and unfortunately my husband it’s savy on this stuff either.

Appreciate any help I can get navigating this stuff. Saving most of $7,500 is motivating! Thank you. Can’t wait to get the car.

The first part of your post is where the dealerships go awry. The residual has zero to do with an early purchase unless you are within 6 months of contract maturity.

Now, all of your fees, documentation fee, lease fee, should all be wrapped into your initial payment. How your taxes are handled are different state to state as well as in your circumstances buying out of state.

TAVT is title ad valorem tax (one-time) based on your state transaction. Hopefully that represents your state and not the state purchasing in as that usually wouldn't apply to you (except in situations where states require all sales in their state to called tax, resident or not).

That $60,562 should be the ACC, adjusted Capital Cost and that's the number you want to confirm from the dealer. You would expect to pay the ACC + the acquisition fee. If you can get a more accurate ACC we can probably fill in the rest of the blanks for you.

 

[Badger]

Many thanks! I will work to get real numbers on Monday. But this helps me get moving in the right direction. I did call and confirm with Genesis corporate finance that there are no penalty fees for early buyout, and with my state’s DVM that I would not be charged tax twice if I buy out a vehicle that I’m leasing. So only speed bump is this dealer finance guy.

 

[chrmnxpnoy]

Yeah I got and extra $500 because I'm a veteran. I can't be sure but it looks like your Adjusted Cap Cost is $55,285.88 ($70,165.00 - $14879.12). If that is correct your Buyout should be the $55,285.88 plus your sales tax on that amount.

Oh man I walked out of the dealership without verifying the ACC hopefully they don't screw me over with the $7500 rebate. Praying the buyout is in the vicinity of $55,285.88 plus any tax and fees.

I know this probably asked before but how soon can I get details on the buyout? I leased last Saturday for reference (April 8).

 

[2450NW]

Last Saturday (April 8th) I bought an Ioniq5 for my wife. In an email exchange with the Dealership's General Manager before going over to Beaverton, Oregon (170 miles from my home), I was describing my plan to buy it, then pay it off when the first statement came. He told me about 3 options: 1) Pay cash--no perks; 2) Finance through Hyundai Finance ($1,000 off final price), then pay it off upon getting the first statement; 3) Lease it through Hyundai ($7,500 off final price) and pay it off after the first statement. I figured a lease had to be the best way. When it came time to make the deal, the finance guy said that, yes, I'd get $7,500 off, but the lease payoff would include all the interest that would have accrued during lease period. That was a lot of money. I wound up financing to get the $1,000 off and I'll wait 'til the first payment and pay it off.

I'm not a finance person and there was a lot of mumbo-jumbo in the paperwork, so if the finance guy was wrong and anyone IS successful in getting the lease discount and paying it off with only the 1st month's interest, I would very much like to know about that.

 

[sakerror]

Last Saturday (April 8th) I bought an Ioniq5 for my wife. In an email exchange with the Dealership's General Manager before going over to Beaverton, Oregon (170 miles from my home), I was describing my plan to buy it, then pay it off when the first statement came. He told me about 3 options: 1) Pay cash--no perks; 2) Finance through Hyundai Finance ($1,000 off final price), then pay it off upon getting the first statement; 3) Lease it through Hyundai ($7,500 off final price) and pay it off after the first statement. I figured a lease had to be the best way. When it came time to make the deal, the finance guy said that, yes, I'd get $7,500 off, but the lease payoff would include all the interest that would have accrued during lease period. That was a lot of money. I wound up financing to get the $1,000 off and I'll wait 'til the first payment and pay it off.

I'm not a finance person and there was a lot of mumbo-jumbo in the paperwork, so if the finance guy was wrong and anyone IS successful in getting the lease discount and paying it off with only the 1st month's interest, I would very much like to know about that.

No way. What he is saying is actually illogic. I would advise you to call Hyundai Finance and discuss it with them. Why don't you get the offer online? through Hyundai finance website?

 

[acadapter]

Last Saturday (April 8th) I bought an Ioniq5 for my wife. In an email exchange with the Dealership's General Manager before going over to Beaverton, Oregon (170 miles from my home), I was describing my plan to buy it, then pay it off when the first statement came. He told me about 3 options: 1) Pay cash--no perks; 2) Finance through Hyundai Finance ($1,000 off final price), then pay it off upon getting the first statement; 3) Lease it through Hyundai ($7,500 off final price) and pay it off after the first statement. I figured a lease had to be the best way. When it came time to make the deal, the finance guy said that, yes, I'd get $7,500 off, but the lease payoff would include all the interest that would have accrued during lease period. That was a lot of money. I wound up financing to get the $1,000 off and I'll wait 'til the first payment and pay it off.

I'm not a finance person and there was a lot of mumbo-jumbo in the paperwork, so if the finance guy was wrong and anyone IS successful in getting the lease discount and paying it off with only the 1st month's interest, I would very much like to know about that.

Yes, many of us have completed the process. The finance person is incorrect. The beginning of this thread has the details you need.

 

[Mcc]

Yes, many of us have completed the process. The finance person is incorrect. The beginning of this thread has the details you need.

Agreed. He was trying to confuse you. You need to pay the entire sales tax but not the interest on the loan. None was accrued.

 

[acadapter]

Yes, many of us have completed the process. The finance person is incorrect. The beginning of this thread has the details you need.

Last Saturday (April 8th) I bought an Ioniq5 for my wife. In an email exchange with the Dealership's General Manager before going over to Beaverton, Oregon (170 miles from my home), I was describing my plan to buy it, then pay it off when the first statement came. He told me about 3 options: 1) Pay cash--no perks; 2) Finance through Hyundai Finance ($1,000 off final price), then pay it off upon getting the first statement; 3) Lease it through Hyundai ($7,500 off final price) and pay it off after the first statement. I figured a lease had to be the best way. When it came time to make the deal, the finance guy said that, yes, I'd get $7,500 off, but the lease payoff would include all the interest that would have accrued during lease period. That was a lot of money. I wound up financing to get the $1,000 off and I'll wait 'til the first payment and pay it off.

I'm not a finance person and there was a lot of mumbo-jumbo in the paperwork, so if the finance guy was wrong and anyone IS successful in getting the lease discount and paying it off with only the 1st month's interest, I would very much like to know about that.

It's less than 3-days since you signed. HMF might allow you to swap your purchase to a lease and for $6500 I would absolutely exhaust options to find out.

 

[2450NW]

After reading the replies to my posting (above), I got worried. I sent that posting to the salesperson and the General Manager for their comments, and asked them to comment on some of replies shown. The General Manager replied to me today, as follows:

"I looked at the deal, I ran the same scenario through a lease option and after doing some basic calculations it looks like you may have saved a small amount of money by leasing but not much. My calculations show you may save $300 or so which is not worth it in my opinion because it is not quite as easy of a process to pay off a lease vs a loan. Also, HMF would technically be purchasing the car and then you buy it from them. The way you did it is probably the best way and easiest for you and the difference is not worth looking at too hard. I'm including a couple of examples below to show you. The biggest thing to remember is that you are just buying the payment down with lease cash or rebates on a lease. When the money factor is low then the savings is greater typically for a lease with good lease cash but when the money factor is so high then it makes it trickier.

Lease - (not including military rebate)
Residual - $30,000
Payments total - $2,800
Disposition Fee - $400
Trade Equity - $23,000
Total cost of the Car - $56,200

Purchase - (not counting military rebate)
Price after rebate - $56,370
Interest paid over a couple weeks ($100-300? +/-?)
Total cost of Car - $56,600-$56,800?"

I got the military discount and $23,000 for our trade-in, so my 'purchase was less than he shows in his example. I trust this guy as a straight-shooter so, based on what he wote, I'm comfortable with the deal we agreed to.

______________________________

Help support this site so it can continue supporting you!

 

[acadapter]

After reading the replies to my posting (above), I got worried. I sent that posting to the salesperson and the General Manager for their comments, and asked them to comment on some of replies shown. The General Manager replied to me today, as follows:

"I looked at the deal, I ran the same scenario through a lease option and after doing some basic calculations it looks like you may have saved a small amount of money by leasing but not much. My calculations show you may save $300 or so which is not worth it in my opinion because it is not quite as easy of a process to pay off a lease vs a loan. Also, HMF would technically be purchasing the car and then you buy it from them. The way you did it is probably the best way and easiest for you and the difference is not worth looking at too hard. I'm including a couple of examples below to show you. The biggest thing to remember is that you are just buying the payment down with lease cash or rebates on a lease. When the money factor is low then the savings is greater typically for a lease with good lease cash but when the money factor is so high then it makes it trickier.

Lease - (not including military rebate)
Residual - $30,000
Payments total - $2,800
Disposition Fee - $400
Trade Equity - $23,000
Total cost of the Car - $56,200

Purchase - (not counting military rebate)
Price after rebate - $56,370
Interest paid over a couple weeks ($100-300? +/-?)
Total cost of Car - $56,600-$56,800?"

I got the military discount and $23,000 for our trade-in, so my 'purchase was less than he shows in his example. I trust this guy as a straight-shooter so, based on what he wote, I'm comfortable with the deal we agreed to.

Glad you got the car you wanted at the end of the day, however none of the information he provided you is accurate.

In order not to discourage others from actually getting the correct information, it's important to highlight that the above math is incorrect.

Nothing regarding early purchase has to do with Money factor, residual value, or any of the normal lease lingo. There is an early purchase before maturity clause, which is what we are referring to here. The military rebate along with any other rebate like the college graduate, etc are all applicable to both lease and purchase, so you would have gotten that on both sides.

This was started in February because we (I) ran into a general manager buying an Ionic 5 with the exact same information you quoted. When I read through the contract's explicit terms, I uncovered the inaccuracies, contacted HMFA directly and confirmed my math/understanding.

I returned to the same dealer, who still stuck to his guns and I bought the car anyway based on my discussion with HMF, who is actually the holder of your contract. The difference ended up being $7000. I've included a snipped of our Convo dated 2/25.

 

[2450NW]

Glad you got the car you wanted at the end of the day, however none of the information he provided you is accurate.

In order not to discourage others from actually getting the correct information, it's important to highlight that the above math is incorrect.

Nothing regarding early purchase has to do with Money factor, residual value, or any of the normal lease lingo. There is an early purchase before maturity clause, which is what we are referring to here. The military rebate along with any other rebate like the college graduate, etc are all applicable to both lease and purchase, so you would have gotten that on both sides.

This was started in February because we (I) ran into a general manager buying an Ionic 5 with the exact same information you quoted. When I read through the contract's explicit terms, I uncovered the inaccuracies, contacted HMFA directly and confirmed my math/understanding.

I returned to the same dealer, who still stuck to his guns and I bought the car anyway based on my discussion with HMF, who is actually the holder of your contract. The difference ended up being $7000. I've included a snipped of our Convo dated 2/25.

Gasp. Now I’m unsure. I think it will be better for my brain if I just chalk this up to experience and call it a day, living with my choice and remain dumb and contented…. Thanks for the comments, though….

 

[SaratogaLefty]

Sorry for your situation. Unfortunately as stated above the General Manager you communicated with either 1) is a "straight shooter" who is grossly uninformed about the current Lease Buyout option that some of us have utilized to get the best savings or 2) his is aware and for whatever reason decided to misinform you and pocket the additional profit for his dealership. That is a pretty expensive lesson learned!!

 

[2450NW]

Sorry for your situation. Unfortunately as stated above the General Manager you communicated with either 1) is a "straight shooter" who is grossly uninformed about the current Lease Buyout option that some of us have utilized to get the best savings or 2) his is aware and for whatever reason decided to misinform you and pocket the additional profit for his dealership. That is a pretty expensive lesson learned!!

Sigh….

 

[Sev]

Really appreciate that this forum is able to help clear the air with such a confusing topic that many of us, including me, don’t have much experience with especially when it’s to help us make the best financial decision. Hopefully the general manager is not being nefarious with his answers, but it’s just one more example why I absolutely loathe having to deal with most dealerships.

 

[SaratogaLefty]

Really appreciate that this forum is able to help clear the air with such a confusing topic that many of us, including me, don’t have much experience with especially when it’s to help us make the best financial decision. Hopefully the general manager is not being nefarious with his answers, but it’s just one more example why I absolutely loathe having to deal with most dealerships.

We have explained this multiple times but apparently there are still many dealerships that either aren't aware of the Lease Buyout approach to get the $7500 rebate applied or choose to intentionally mislead customers. Interestingly it was my sales team at the Dealership who first made me aware of this opportunity. Initially I was very skeptical but then I found this forum and sure enough it was exactly as the Sales Team explained it to me. In my case, I wound up doing the Lease Buyout and purchasing the car all in including fees, taxes, etc. for about $1000 below the original MSRP. And my sales tax rate is 9.25%!!

 

[GreyGV60]

We have explained this multiple times but apparently there are still many dealerships that either aren't aware of the Lease Buyout approach to get the $7500 rebate applied or choose to intentionally mislead customers. Interestingly it was my sales team at the Dealership who first made me aware of this opportunity. Initially I was very skeptical but then I found this forum and sure enough it was exactly as the Sales Team explained it to me. In my case, I wound up doing the Lease Buyout and purchasing the car all in including fees, taxes, etc. for about $1000 below the original MSRP. And my sales tax rate is 9.25%!!

Question- Can you please clarify if you leased the car or if you purchased the car?

 

[acadapter]

Question- Can you please clarify if you leased the car or if you purchased the car?

We did both. You Lease the car. Get your account, then buy it out immediately with financing of your choosing (or cash). We did it in less than 5 business days total time.

 

[SaratogaLefty]

Question- Can you please clarify if you leased the car or if you purchased the car?

I did a lease. The GV60 Advanced was a birthday present for my wife. We traded in her six year old 2016 Buick Encore that we paid $34K out the door when we bought it. They gave us a $15k trade in for that car which was higher than we hoped we'd get. They threw in a $500 discount because I am a veteran. And they gave us the full $7500 rebate. The Sales Manager explained the full process about doing the Lease Buyout. As has been explained multiple times it is based upon the Adjusted Cap Cost plus sales tax. You can go online to the Genesis Finance website, log on and request a Buyout Quote. Then you wire the money or send them a check to the address on the website. Then you have to complete a Genesis Finance Odometer Statement and that is it. They will process your Buyout and send you the title.

 

[Badger]

I’m still hearing from the finance guy at the dealer that “I am responsible for 24 months payment plus residual” and he says he has spoken with Genesis to confirm. I got him to send me the lease contract to review. And am attaching. I’ve highlighted the language that I think should apply.

It looks like the numbers are wrong, that the guy is using the $7500 rebate to make this a no-down-payment deal rather than reducing the purchase price. I should be seeing an adjusted price that reflects $8,000 off ($7500 rebate and $500 military).

I’m attaching some screen shots. If I can get the initial numbers right, I think that highlighted clauses 9, 22, and 23 should let me buyout for Adjusted Capital cost minus first month lease payment plus $300 purchase option fee?