Buying vs Leasing your Genesis

[Ragnar]

Just out of curiosity wondering which most of you prefer?
I myself have always preferred buying my cars as opposed to leasing them which to me is just renting.
Never really saw any advantage to it.
Is there a advantage as to depreciation when buying?
Like to hear your thoughts!

 

[kn5owa]

I've seen a lot of bragging about lease deals based on last year's models, demo's, less desirable or equipped models, etc. Also, when I looked at leased cars, some dealers would not lease the cream puffs.

If you buy - and you get a current, desirable model, as I did --- then you will pay a high price - although Hyundai's of all stripes are all discounted heavily.

I bought mine.

*** watch out for scams either way

On a lease, watch out for redemption charges, damage charges, processing fees and anything else they can throw at you when you turn the car in.

 

[dougmcp]

A vehicle to a company is a tool not a asset, the main reason companies lease so they can maintain their capital for investing in things like inventory etc that creates profit rather than investing in a depreciating asset like a vehicle. .
There are no real personal advantages to leasing unless you have something else you are investing in that returns more profit than the costs of leasing.
Generally the people that lease get a nicer car for the lease payment than they could have with a loan payment. In the end you are essentially renting the car or if you are buying at the end of the lease you have basically put off the down payment until the end and have paid interest on that down payment for the term length of the lease.

 

[Mark_888]

The advantages of leasing are more administrative than anything else, especially for businesses. But it depends on how long you own your car. If one plans to get a new car when the lease runs out, then leasing saves a lot of time, hassle, and often money in disposing of the old one. Sometimes, auto companies are very optimistic (ie, too optimistic) about the residual value of leased car in order to do more lease deals and move their inventory.

If one is going to buy the car at lease end, then buying up front is probably wiser.

- - - Updated - - -

Generally the people that lease get a nicer car for the lease payment than they could have with a loan payment.

I think that only works the first car. For all subsequent cars the buyer gets to reduce the cost of the next car with the trade-in, so that they should be able to get a better deal on the new one that means lower payments next time.

Personal Finance experts like Suze Orman generally do not recommend auto leasing for individuals:
http://www.cnbc.com/2013/10/11/-road-rules-for-car-buying.html

 

[kn5owa]

The advantages of leasing are more administrative than anything else, especially for businesses. But it depends on how long you own your car. If one plans to get a new car when the lease runs out, then leasing saves a lot of time, hassle, and often money in disposing of the old one. Sometimes, auto companies are very optimistic (ie, too optimistic) about the residual value of leased car in order to do more lease deals and move their inventory.

If one is going to buy the car at lease end, then buying up front is probably wiser.

- - - Updated - - -


I think that only works the first car. For all subsequent cars the buyer gets to reduce the cost of the next car with the trade-in, so that they should be able to get a better deal on the new one that means lower payments next time.

Personal Finance experts like Suze Orman generally do not recommend auto leasing for individuals:
http://www.cnbc.com/2013/10/11/-road-rules-for-car-buying.html

Suze Orman & her money hustling counterpart Ric Edelman look out for themselves first and that sums it up. I'm not gonna say what really should be said.

 

[SuperKing]

A vehicle to a company is a tool not a asset, the main reason companies lease so they can maintain their capital for investing in things like inventory etc that creates profit rather than investing in a depreciating asset like a vehicle. .
There are no real personal advantages to leasing unless you have something else you are investing in that returns more profit than the costs of leasing.
Generally the people that lease get a nicer car for the lease payment than they could have with a loan payment. In the end you are essentially renting the car or if you are buying at the end of the lease you have basically put off the down payment until the end and have paid interest on that down payment for the term length of the lease.

This is exactly why I finance. Buying it would get me a car but $70k would be gone from my investment account. Instead, my money is invested in things like PHK, PGP, NCZ, etc... stuff that gives about a 10% yield depending on the price you get it for. The monthly dividends are enough to to cover the cost of the car. I get a 5.0L genesis and a I keep my money invested.

I do that with a lot of things actually... dividends from energy companies pay for my gas, my holdings in Telus covers my phone/TV, etc... I was taught at an early age, not to spend the money that you worked so hard for. Put that money to work for you instead and spend the return.

In regards to the car, I choose financing over leasing because I don't like having to watch my mileage. I trade it in when the trade in value equals what I still owe on the car so I break even on it.

 

[PMCErnie]

If you only lease your cars, over the course of time you will dig yourself into a very deep financial hole. However, some folks don't mind frittering away equity in order to drive a brand new, loaded, car every two, or three, years.

My routine is to buy and keep a car for at least 6 years. Then I pass the car on to my Son's family for another 4-6 years. They get a car in good condition at a low price, or for free. That gives me much more satisfaction than driving a new car every time the ashtray is full.

 

[carltonsisk]

I have leased cars for 20 years now. Will purchase if it makes sense (have purchased 2 or 3 in that time). I leased my 2015 Genesis because:
The interest rate on the lease was super low (.79% I think).
The incentives at the time were for leasing only (extra $3000)
The residual value was high (58%) Did not think the Genesis would retain it's value well so did not want to buy (KBB is $24.5K now with 7 months left on lease, buyout is right at 28K)
Payment was well under 1% rule (MSRP ~47K, Monthly $343) with $0 down
I drive less than 12K/yr (was close once in 20 yrs, and that car held it's value (Acura) so was able to sell it out from under lease before mileage was over limit)
I like not having to deal with car repairs outside of warranty and prefer new cars and enjoy the newer tech as well.
As far as turn in issues...I have never been burned but always get estimate of any costs before turning in. If estimate is high, another dealer will likely be able to buy it out to get you into one of their cars. There are options...
Equity on cars seems like a problem to me..every car I've owned has been worth crap when trading plus that is another wonderful negotiation to have with the dealer

To each his own I think...

 

[Mark_888]

If you only lease your cars, over the course of time you will dig yourself into a very deep financial hole. However, some folks don't mind frittering away equity in order to drive a brand new, loaded, car every two, or three, years.

My routine is to buy and keep a car for at least 6 years. Then I pass the car on to my Son's family for another 4-6 years. They get a car in good condition at a low price, or for free. That gives me much more satisfaction than driving a new car every time the ashtray is full.

I have 60K miles on my Genesis and I normally get a new car every 6-7 years (have always paid cash since 1987 when auto loan interest no longer was tax detectable). But I am down to less than 2500 miles per year, so it makes sense to keep it a while longer, as it is still in excellent condition. My next vehicle is very likely to be a CUV/SUV.

 

[LA Genesis]

I've never leased and I am not overly familiar with the finance of leasing. I'm under the impression a car that depreciates rapidly like the Genesis is a good car to lease if Hyundai/Genesis is subsidizing leases to make them more attractive. Cars that depreciate rapidly will likely have higher lease costs unless the manufacturer helps. Cars that retain high resale value should be cheaper to lease.

If you trade in every 2-4 years, drive under 12K-15K miles annually, and you can get a good lease deal from Hyundai/Genesis I think you should go for it. Exceptions are people that keep cars for 5+ years and drive a lot of miles annually. I am retiring and expect to drive less miles in the future. I will take a serious look at a lease for my next car. Is my thinking flawed? Would appreciate any feedback.

______________________________

Help support this site so it can continue supporting you!

 

[Mark_888]

I've never leased and I am not overly familiar with the finance of leasing. I'm under the impression a car that depreciates rapidly like the Genesis is a good car to lease if Hyundai/Genesis is subsidizing leases to make them more attractive. Cars that depreciate rapidly will likely have higher lease costs unless the manufacturer helps. Cars that retain high resale value should be cheaper to lease.

If you trade in every 2-4 years, drive under 12K-15K miles annually, and you can get a good lease deal from Hyundai/Genesis I think you should go for it. Exceptions are people that keep cars for 5+ years and drive a lot of miles annually. I am retiring and expect to drive less miles in the future. I will take a serious look at a lease for my next car. Is my thinking flawed? Would appreciate any feedback.

I think you are basically correct.

However, if your mileage drops way down in retirement, to say 3,000 - 5,000 miles per year, then leasing may not be so good if you are paying for 10,000 miles or more per year on a lease. Also, the idea of getting a new car after only 10,000 - 15,000 miles of use (after 3 years) doesn't make a lot of sense to me.

 

[LA Genesis]

My mileage would still be about 10K-12K per year in retirement. After 3 years I would have at least 30K. However I do like the PMC Ernie's idea of getting rid of the car when the ashtray fills up.

 

[Dai Uy Ted]

Last week, after negotiating the purchase price of a new G80 V8 Ultimate, I decided to lease it; three years, 10k mi/yr. I seem to get the itch for a new car more frequently (I had the Coupe just over two years). Lots of good new stuff on the horizon which will be well proven in three years. Retired, I drive 7-8k miles a year.

 

[Sal Collaziano]

Last week, after negotiating the purchase price of a new G80 V8 Ultimate, I decided to lease it; three years, 10k mi/yr. I seem to get the itch for a new car more frequently (I had the Coupe just over two years). Lots of good new stuff on the horizon which will be well proven in three years. Retired, I drive 7-8k miles a year.

Congratulations. How are you liking the upgrade so far?