$7500 back on a lease??

[virtualjack]

I was told wheel and tire coverage and sales tax

It should be itemized. They should be able to say exactly how much tax and exactly how much the wheel charges are. You can verify the tax rate by googling “new car sales tax”.

 

[SaratogaLefty]

I was told wheel and tire coverage and sales tax

Tell them you don't want the wheel and tire coverage.

 

[chuk]

Completed our GV60 lease buyout that we leased last Friday. Let me tell you that the dealership experience is the worst thing ever.

We took delivery of our GV60 last Sunday, the financing on Genesis wasn't accessible until Tuesday, got a buyout quote and overnighted a cashier's check. Got an email that they processed the check yesterday and just waiting for Hyundai to send us the title.

If we purchased the vehicle it would've been $65k including taxes and fees, with the Hyundai lease we spent shy of $59k.

My only advice is to tell the dealer to F off with any dealer add ons and negotiate that MSRP. Make sure the adjusted cap cost makes sense to you because that's the purchase price before taxes.

This was in SoCal (LA market) so yes even, in one of the largest auto markets you can negotiate pricing. Oh and did I mention that car dealers are scum of the earth?

 

[chrmnxpnoy]

Completed our GV60 lease buyout that we leased last Friday. Let me tell you that the dealership experience is the worst thing ever.

We took delivery of our GV60 last Sunday, the financing on Genesis wasn't accessible until Tuesday, got a buyout quote and overnighted a cashier's check. Got an email that they processed the check yesterday and just waiting for Hyundai to send us the title.

If we purchased the vehicle it would've been $65k including taxes and fees, with the Hyundai lease we spent shy of $59k.

My only advice is to tell the dealer to F off with any dealer add ons and negotiate that MSRP. Make sure the adjusted cap cost makes sense to you because that's the purchase price before taxes.

This was in SoCal (LA market) so yes even, in one of the largest auto markets you can negotiate pricing. Oh and did I mention that car dealers are scum of the earth?

Out of curiosity which dealership was this? I leased mine from Genesis of Irvine earlier this month without any markups or dealer installed add-ons.

 

[2450NW]

If you buy out a lease, is it true that you are no longer the 'original' owner, and thus the maintenance plan afforded to new buyers becomes unavailable?

 

[chuk]

Out of curiosity which dealership was this? I leased mine from Genesis of Irvine earlier this month without any markups or dealer installed add-ons.

Torrance

We were in a bind because they were the only ones with the color/interior that the fiancee liked and she needed to replace her totaled car for a new job she starts this week that requires commuting.

Took a long time to talk her out of getting a BMW iX and the Genesis dealer experience didn't make it any better lol.

 

[asterixs]

I've been considering lease buyout as well. If I do a pure cash calculation then I can save just about ~$6500 before first payment gets applied (due in 2 days now).

Now, if I use the financing or include the opportunity cost of cash (assumed @5.5%) then it gets muddy.

My lease rental charge is about $220 a month (for 36months lease) or about $8000 over the lease period. That's the effective cost of financing.

If I finance the buyout price (~$48K) with average rate of 5.5% for 6yrs then I'd end-up paying about the same or slightly more in interest cost. This keeps the monthly payment very similar as lease. Even if I don't finance, I lose money at the similar rate given I can easily buy T-bills.

Now, the part I'm struggling is - I know I'll own the car once it's paid for but is it actually saving me money from a cost of ownership perspective? These cars are depreciating like rock primarily because of technological advance make it inferior (very similar to phone depreciation after newer model release).

I can't imagine myself keeping this car for more than 4-5years especially given GV60 is a low range car. At a min, I'd expect range becoming superior after 4-5years.If I want to sell this car after 4-5years then I don't think I'd get any better than 35-40% off MSRP. Residual on this car is currently at 52% after 3yrs (set by Hyundai). I'd be very surprised if I can do better than that if I was selling myself after 3yrs. I can save about $2-3K if I sell exactly at residual after buying out in 3yrs.

But, if hold it another 2yrs then chances are I'm losing money (additional depreciation+opportunity cost) when I want to exit out.

This math changes favorably if one is looking it for 10yrs out. Then there is definitely money to be saved by buying it now or effectively claiming the part of lost tax credit.

So, just to cut to chase, I'm trying to understand from who bought out or considering one, what is the exit timeframe you are looking at? And, what's expectation on depreciation beyond the lease period?

Lease gives us a clean exit, no strings attached, for a marginal premium. That has financial value too. So, I want to make sure I'm not missing any other factors in my calculations before I do it.

 

[acadapter]

Finally i have access to my account. I have a question for you, 1st time i requested a buyout i got a 54,520$, now i am getting 54,014$. The difference was around 6hours apart.

Do you know anything regarding this?

Sorry, I was out for a while and didn't see this until now. I see below, I think you got the answer you needed but doubling back to make sure.

 

[acadapter]

I've been considering lease buyout as well. If I do a pure cash calculation then I can save just about ~$6500 before first payment gets applied (due in 2 days now).

Now, if I use the financing or include the opportunity cost of cash (assumed @5.5%) then it gets muddy.

My lease rental charge is about $220 a month (for 36months lease) or about $8000 over the lease period. That's the effective cost of financing.

If I finance the buyout price (~$48K) with average rate of 5.5% for 6yrs then I'd end-up paying about the same or slightly more in interest cost. This keeps the monthly payment very similar as lease. Even if I don't finance, I lose money at the similar rate given I can easily buy T-bills.

Now, the part I'm struggling is - I know I'll own the car once it's paid for but is it actually saving me money from a cost of ownership perspective? These cars are depreciating like rock primarily because of technological advance make it inferior (very similar to phone depreciation after newer model release).

I can't imagine myself keeping this car for more than 4-5years especially given GV60 is a low range car. At a min, I'd expect range becoming superior after 4-5years.If I want to sell this car after 4-5years then I don't think I'd get any better than 35-40% off MSRP. Residual on this car is currently at 52% after 3yrs (set by Hyundai). I'd be very surprised if I can do better than that if I was selling myself after 3yrs. I can save about $2-3K if I sell exactly at residual after buying out in 3yrs.

But, if hold it another 2yrs then chances are I'm losing money (additional depreciation+opportunity cost) when I want to exit out.

This math changes favorably if one is looking it for 10yrs out. Then there is definitely money to be saved by buying it now or effectively claiming the part of lost tax credit.

So, just to cut to chase, I'm trying to understand from who bought out or considering one, what is the exit timeframe you are looking at? And, what's expectation on depreciation beyond the lease period?

Lease gives us a clean exit, no strings attached, for a marginal premium. That has financial value too. So, I want to make sure I'm not missing any other factors in my calculations before I do it.

Buying out the lease doesn't taking any of the below options away from you. In actuality, if you bought out the lease and swapped into a more reasonable loan interest rate, you'd actually save money. The premium in the Genesis lease, to me, I wouldn't consider it marginal.

 

[RSuperman]

I got our GV60A on lease (out of state) on April 22nd from the Genesis dealership in Salt Lake City. I still have not received confirmation from Genesis Finance regarding activation of my lease account. Dealer says the documentation is being reviewed. Haven't spoken to Genesis Finance yet.

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[asterixs]

I got our GV60A on lease (out of state) on April 22nd from the Genesis dealership in Salt Lake City. I still have not received confirmation from Genesis Finance regarding activation of my lease account. Dealer says the documentation is being reviewed. Haven't spoken to Genesis Finance yet.

No need to wait for email, try registering using VIN/SSN, etc (it will ask for familiar info when you try to register). I registered without the account number at least 2 days before I got email. I also purchased out of state (NY, resident NJ).

 

[RSuperman]

No need to wait for email, try registering using VIN/SSN, etc (it will ask for familiar info when you try to register). I registered without the account number at least 2 days before I got email. I also purchased out of state (NY, resident NJ).

This is the response I get with the VIN input....

 

[sakerror]

This is the response I get with the VIN input....


View attachment 53036

I had the same experience, this whole thing is a dealership matter, it took mine 25days to send related papers to the bank and to genesis finance in order to be able to open the account,

 

[RSuperman]

I had the same experience, this whole thing is a dealership matter, it took mine 25days to send related papers to the bank and to genesis finance in order to be able to open the account,

I spoke to Genesis Finance and they said the dealership has not sent the papers yet. I sent a text to my sales guy asking for clarification. After 4 hours I get a call saying the electronic contract signed by me on 4/22 was rejected by GF and I need to sign fresh papers which was being overnighted. Absolutely irresponsible dealership.

 

[sakerror]

I spoke to Genesis Finance and they said the dealership has not sent the papers yet. I sent a text to my sales guy asking for clarification. After 4 hours I get a call saying the electronic contract signed by me on 4/22 was rejected by GF and I need to sign fresh papers which was being overnighted. Absolutely irresponsible dealership.

i feel you! I leased my car on 29th of March and couldn't open an account until April 22nd! The finance guy at the dealership was unprofessional and lazy to an unacceptable degree! He had this irresponsible and igaf behavior. Hopefully you will be able to open your account in the next 2days.

 

[chrmnxpnoy]

Finally i have access to my account. I have a question for you, 1st time i requested a buyout i got a 54,520$, now i am getting 54,014$. The difference was around 6hours apart.

Do you know anything regarding this?

I just noticed the discrepancy in total purchase price on my end too. My original was $61352.79 versus two weeks ago when it was $60818.29 ($534.50 less). I contacted Genesis Finance and they did say they are sending a refund of the over payment.

 

[sakerror]

I just noticed the discrepancy in total purchase price on my end too. My original was $61352.79 versus two weeks ago when it was $60818.29 ($534.50 less). I contacted Genesis Finance and they did say they are sending a refund of the over payment.

Yep, i don't know what's the problem with this 500$ difference!
But as for me, i was lucky noticing the discrepancy before paying, so i sent them the correct payment.

 

[asterixs]

I've been considering lease buyout as well. If I do a pure cash calculation then I can save just about ~$6500 before first payment gets applied (due in 2 days now).

Now, if I use the financing or include the opportunity cost of cash (assumed @5.5%) then it gets muddy.

My lease rental charge is about $220 a month (for 36months lease) or about $8000 over the lease period. That's the effective cost of financing.

If I finance the buyout price (~$48K) with average rate of 5.5% for 6yrs then I'd end-up paying about the same or slightly more in interest cost. This keeps the monthly payment very similar as lease. Even if I don't finance, I lose money at the similar rate given I can easily buy T-bills.

Now, the part I'm struggling is - I know I'll own the car once it's paid for but is it actually saving me money from a cost of ownership perspective? These cars are depreciating like rock primarily because of technological advance make it inferior (very similar to phone depreciation after newer model release).

I can't imagine myself keeping this car for more than 4-5years especially given GV60 is a low range car. At a min, I'd expect range becoming superior after 4-5years.If I want to sell this car after 4-5years then I don't think I'd get any better than 35-40% off MSRP. Residual on this car is currently at 52% after 3yrs (set by Hyundai). I'd be very surprised if I can do better than that if I was selling myself after 3yrs. I can save about $2-3K if I sell exactly at residual after buying out in 3yrs.

But, if hold it another 2yrs then chances are I'm losing money (additional depreciation+opportunity cost) when I want to exit out.

This math changes favorably if one is looking it for 10yrs out. Then there is definitely money to be saved by buying it now or effectively claiming the part of lost tax credit.

So, just to cut to chase, I'm trying to understand from who bought out or considering one, what is the exit timeframe you are looking at? And, what's expectation on depreciation beyond the lease period?

Lease gives us a clean exit, no strings attached, for a marginal premium. That has financial value too. So, I want to make sure I'm not missing any other factors in my calculations before I do it.

I finally got a quote without NJ sales tax (it needed to generated through back-end team as portal includes sales tax by default).

With final numbers in my hand, I'd save about $900 if I chose to buyout today instead of buying at the end of lease terms (3yrs in my case).

In other words, I'm paying $900 premium for 3yrs or $300 per year to walk away if used market goes south or car proves problematic.

Key parameters:
- Financing for 6yrs (6yrs based on today's buyout quote, or 3yrs based on residual price at the end of lease)
- Cost of cash or loan is same 5.74% so NO difference if paying cash or loan (unless cash is under the mattress). This rate is among best I can get from FCUs.
- Lease buyout fee $300 today, no buyout fee after 3yrs.
- Title + Registration Fee to be paid again if buying today

If I use rate at 4% then I'd save around $2800 or so, just to give an idea.

 

[JjSoCal]

Edited per what I think is most interesting :
I got the GV60 Advanced lease late last month.
I did get the $7500 rebate. It’s real.
I just went ahead and pulled a buyout quote from Genesis Finance. It’s $32278 plus tax of $2502. In total, if I buyout the lease, the car would cost me $60115 including sales tax and all fees. Per my calculation, that’s about $6500 less than buying the car at the $61500 price (which included the destination fee and some nonsense dealer add on). So like I said, the rebate is very real.

Lease details:
Car price plus options was $61500, residual is $31837 and money factor 0.0031 which is 7.44% APR. That interest rate is high, which is why I put down as much as they’d take. I put down $25000 and my monthly is $228.
The rebate pays for the interest. So it’s not a slam dunk gain, but more of a low cost lease deal.
if I keep the lease, my gain is from $31000 earning interest in the bank. I can get some more in taxes on that interest (car is mixed use, so only partially deductible).
I also believe that residual is low. If that’s true, I’ll keep the car longer. Otherwise, I got a hedge against depreciation.

Update: I found the “rent charge” on my contract. That’s basically the interest and fees. It’s $7178, so less than the $7500 reduction. Like I said, free interest.

 

[2450NW]

Have you checked with Genesis to ensure that the maintenance warranty will still be valid. I read somewhere that if you buy out a lease, you are not the ‘first owner’.