$7500 back on a lease??

[acadapter]

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?

Your write-up is correct. - the $8000 should be in the capitalized cost reduction section with the first month's payment shown as a deduction of that rebate. Looks like they are missing your $500.

Here's mine. Generally on par.

 

[Badger]

Well phoo. I don’t know you folks are doing this but I just got off the phone with Genesis finance Lease-End Service Team and was told I would be required to pay residual value and all remaining monthly installments in an early buyout.

 

[voxel]

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?

There is something amiss with your contract. A $70K lease should be maybe $1200/month max (probably closer to $1100) for a 36 month lease. A $60K Ioniq 5 Limited is $950+/month in Florida with 6.5% tax. Yours is a 24 month lease though.

Let me check my Ioniq 5 HMF lease. I put $1K down with no trade in. Your contract is written such that the $7500 "incentive" is treated as a $5995 down payments plus first months payment. Very weird.

 

[acadapter]

Well phoo. I don’t know you folks are doing this but I just got off the phone with Genesis finance Lease-End Service Team and was told I would be required to pay residual value and all remaining monthly installments in an early buyout.

That's because you aren't doing an early buy-out and ironically, they are two different offices.

I went through this too. Within the last 6 months of your contract end date, this is in the early buy-out section. Any other timeframe, that's a purchase before maturity. They have different clauses in the contract.

 

[Badger]

There is something amiss with your contract. A $70K lease should be maybe $1200/month max (probably closer to $1100) for a 36 month lease. A $60K Ioniq 5 Limited is $950+/month in Florida with 6.5% tax. Yours is a 24 month lease though.

Let me check my Ioniq 5 HMF lease. I put $1K down with no trade in. Your contract is written such that the $7500 "incentive" is treated as a $5995 down payments plus first months payment. Very weird.

Yes it’s very strange. The car after tax and fees and incentives to buy outright is under $72k. After lease rebate we should be talking about $64.5k to lease then payoff.
But that talk this afternoon with Genesis saying all fees are still due on buyout has me really concerned.

 

[Badger]

That's because you aren't doing an early buy-out and ironically, they are two different offices.

I went through this too. Within the last 6 months of your contract end date, this is in the early buy-out section. Any other timeframe, that's a purchase before maturity. They have different clauses in the contract.

“Purchase Before Maturity” thank you! Do you know what department handles that?

 

[voxel]

Yes it’s very strange. The car after tax and fees and incentives to buy outright is under $72k. After lease rebate we should be talking about $64.5k to lease then payoff.
But that talk this afternoon with Genesis saying all fees are still due on buyout has me really concerned.

So your contract is mostly correct but a tad odd. I received $7939 cap reduction ($7500 plus some bank incentive for excess wear warranty). The extra $439 was negated by the actual excess wear and tear $499 warranty.

I your case you received a low cap reduction but first payment is “free” so it kinda adds up.

 

[chrmnxpnoy]

Just got access my lease buyout details from my newly accessible Genesis Finance account (leased it on Saturday April 8 and got access on Tuesday April 11). I think things look good!! Thank you @acadapter for getting the ball rolling on this rebate info and @SaratogaLefty for confirming the numbers

Any tips on how to pay this amount? I may have to reapply my existing "New" auto loan and switch it over to "Refinance" from PenFed.

Since my lease details didn't include a security deposit, can I ignore the last page of the buy out PDF (Security Deposit Authorization Form)?

 

[Badger]

View attachment 52488
Just got access my lease buyout details from my newly accessible Genesis Finance (leased it on Saturday and got access on Tuesday). I think things look good!! Thank you @acadapter for getting the ball rolling on this rebate info and @SaratogaLefty for confirming the numbers

Any tips on how to pay this amount? I may have to reapply my existing "New" auto loan and switch it over to "Refinance" from PenFed.

This is very helpful and encouraging! Thanks for posting the details.

 

[acadapter]

View attachment 52488
Just got access my lease buyout details from my newly accessible Genesis Finance (leased it on Saturday and got access on Tuesday). I think things look good!! Thank you @acadapter for getting the ball rolling on this rebate info and @SaratogaLefty for confirming the numbers

Any tips on how to pay this amount? I may have to reapply my existing "New" auto loan and switch it over to "Refinance" from PenFed.

Since my lease details didn't include a security deposit, can I ignore the last page of the buy out PDF (Security Deposit Authorization Form)?

That's what we did re:the loan. My Credit Union treated the application and rate the same as a new car but that will depend on PenFed. It's been a while since I've had an auto loan through them.

We also didn't have the SD and ignored that form without issue.

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[sakerror]

That's what we did re:the loan. My Credit Union treated the application and rate the same as a new car but that will depend on PenFed. It's been a while since I've had an auto loan through them.

We also didn't have the SD and ignored that form without issue.

I have a question for you, believe or not, i am still waiting for Genesis Welcome Email, and yes i tried registering online without it but it is not working, I've called genesis finance couple of times and every time they asked me to wait for 2 weeks as some dealers takes more time to proceed and send lease documents. I leased my car on 29/3/2023.

1- Do you think the dealer is doing it on purpose?
2- Is there a specific time/rule for the purchase before maturity (section 23, subsection B) ?

 

[acadapter]

I have a question for you, believe or not, i am still waiting for Genesis Welcome Email, and yes i tried registering online without it but it is not working, I've called genesis finance couple of times and every time they asked me to wait for 2 weeks as some dealers takes more time to proceed and send lease documents. I leased my car on 29/3/2023.

1- Do you think the dealer is doing it on purpose?
2- Is there a specific time/rule for the purchase before maturity (section 23, subsection B) ?

I think the response to number one has a ton of possible answers-

a) Yes, there are spiteful dealers
b) Yes, there are dealerships than don't know how to use modern technology
c) Yes, dealers just suffer from being slow

But, none of those should be the case now a days and it's frustrating to go through it. It took less than 72-hours; including a closed day on the weekend for me along with others and that's the standard that should be met.

For #2, no. As long as you aren't within 6-mo of your end date. BUT, extra days just eat a couple more dollars of rent fee. It's not much, but still.

 

[Badger]

I just received new lease numbers. Do these look right? This reflects the $7500 plus $500 military rebate.

 

[Reinonu]

What does everybody think of this.

Electric car-makers have found a legal loophole to get their customers an extra $7,500 tax credit

Requirements for the new EV tax credits mean a lot of EVs won't qualify. Automakers may look to get their customers a commercial EV credit instead.

www.businessinsider.com

Is anybody doing it?

Yes, did this last week.
Very confusing math but overall it is a real deal. basically 10% of advanced car

 

[acadapter]

I just received new lease numbers. Do these look right? This reflects the $7500 plus $500 military rebate.

This looks good; they are hitting you for $990 for Tint and Paint protection though?!

 

[Badger]

This looks good; they are hitting you for $990 for Tint and Paint protection though?!

Yep. But they give a credit that cancels out the doc fee. I will live with it. Appreciate your reviewing this!

I have no idea how you got through to a helpful supervisor at Genesis Finance. I tried again yesterday and finally gave up. Appreciate all the research you did and I’m going the lease/buyout route based on your and others’ success. Rereading the original thread with a sample lease in front of me helped answer my remaining questions.

 

[Badger]

Got my GV60 today and am thrilled with it. But we ended up just purchasing it and NOT doing the lease/buyout . We were buying across state lines and I was getting tons of tax confusion from dealers on the lease. And we live in a state where I can’t just mail a check to Genesis Finance and buy from them to terminate a lease. By state law, I would have to contact a dealer and buy back through them. As I shopped, I was getting lots of “market adjustment” and other nonsense added to MSRP by most dealers as the car is just showing up around here. So the idea of getting one of them to understand the “purchase before maturity” language and let me buy out a lease at the price Genesis Finance quotes, was starting to look highly adventurous. We figure we might clear a savings around $6k if we pulled off the buyback. Or get stuck paying $3-4k more than our cash price if we couldn’t pull off a buyout through a dealer. So we split the difference and bought the car as originally planned. I am impressed and a bit envious that so many have been able to make this work, it just got to complicated in our situation.

 

[sakerror]

Well i am about to lose my mind, been 3weeks and Genesis Finance still didn't received my lease contract. Multiple phone calls to both dealership and Genesis resulted in NOTHING. I still don't have an account and surely can't create one on my own.

How unprofessional!

 

[Badger]

Well i am about to lose my mind, been 3weeks and Genesis Finance still didn't received my lease contract. Multiple phone calls to both dealership and Genesis resulted in NOTHING. I still don't have an account and surely can't create one on my own.

How unprofessional!

That is insane. I hope it gets sorted soon.

 

[acadapter]

Well i am about to lose my mind, been 3weeks and Genesis Finance still didn't received my lease contract. Multiple phone calls to both dealership and Genesis resulted in NOTHING. I still don't have an account and surely can't create one on my own.

How unprofessional!

Certainly --- Keep us posted, if we can track down someone at corporate for you to chat with, I'll be looking for that info too!