G70 Lease Comparisons and Discussion (USA)

[TurtleBoy]

Yes
Subtract $1k incentive
$3k down
Tax is 4.15%

Are you wanting to put $3k down in addition t paying the taxes, fees etc? If so, I'm coming up with payments of 595 a months with 6,212 due at signing.

 

[Beefer]

Are you wanting to put $3k down in addition t paying the taxes, fees etc? If so, I'm coming up with payments of 595 a months with 6,212 due at signing.

No...just $3k. That should cover taxes and most fees...minus freight.

I’m using $51,500 MSRP + freight.

 

[TurtleBoy]

No...just $3k. That should cover taxes and most fees...minus freight.

I’m using $51,500 MSRP + freight.

Gotcha, then payments will be around 650 or so.

I used 51,500 + 995 - 1,000 = 51,495 for your cap cost. Had taxes and acquisition fee paid up front.

 

[Beefer]

Gotcha, then payments will be around 650 or so.

I used 51,500 + 995 - 1,000 = 51,495 for your cap cost. Had taxes and acquisition fee paid up front.

View attachment 15680

So the LH Score...is it good? Forgot what the thresholds are.

 

[TurtleBoy]

So the LH Score...is it good? Forgot what the thresholds are.

I think it is a meaningless number to look at for one deal. You can use it to compare different factors but still is to very useful in my option. There definition is "the number of years for the accumulated average monthly payments to exceed the MSRP. The higher the score the better the deal." They should give some type of comparison figure but does it really matter.

The deal could be terrible for someone but for you be exactly want you want so it makes it good. We are talking here about a luxury car, something that is wanted and not needed. If you are comfortable with the numbers and you really want the car then it is a good deal.

From a pure mathematical/financial/comparative point of view, in my opinion those numbers look good. While the RV is a bit lower than some I have seen from other manufacturers the MF is much lower than what I'm seeing out there. If I wanted the car I would think it is good. Someone like Danny who subscribes to the 1% rule will probably say that it is a terrible deal. I personally think the 1% rule should not apply to vehicles in the luxury category but we all have different opinions.

What it is going to come down to is a few things, do you really want that car, can you make the payments, and are you comfortable making the payments? My guess is after getting it you are rarely going to think about the deal you made if you answered yes to the three questions above.

 

[Beefer]

I think it is a meaningless number to look at for one deal. You can use it to compare different factors but still is to very useful in my option. There definition is "the number of years for the accumulated average monthly payments to exceed the MSRP. The higher the score the better the deal." They should give some type of comparison figure but does it really matter.

The deal could be terrible for someone but for you be exactly want you want so it makes it good. We are talking here about a luxury car, something that is wanted and not needed. If you are comfortable with the numbers and you really want the car then it is a good deal.

From a pure mathematical/financial/comparative point of view, in my opinion those numbers look good. While the RV is a bit lower than some I have seen from other manufacturers the MF is much lower than what I'm seeing out there. If I wanted the car I would think it is good. Someone like Danny who subscribes to the 1% rule will probably say that it is a terrible deal. I personally think the 1% rule should not apply to vehicles in the luxury category but we all have different opinions.

What it is going to come down to is a few things, do you really want that car, can you make the payments, and are you comfortable making the payments? My guess is after getting it you are rarely going to think about the deal you made if you answered yes to the three questions above.

Thanks!! All makes perfect sense.

 

[twelvetosix]

I personally think the 1% rule should not apply to vehicles in the luxury category but we all have different opinions.

Except luxury vehicles are typically the vehicles people get in the 1% rule. They're typically easier to hack because they have higher residuals and a lot of luxury manufacturers let you do MSDs to lower MF

 

[TurtleBoy]

Except luxury vehicles are typically the vehicles people get in the 1% rule. They're typically easier to hack because they have higher residuals and a lot of luxury manufacturers let you do MSDs to lower MF

My research shows the opposite but things could be different. For a Mercedes people usually adjust to a 1.3% rule. MSDs don't count as I believe they break the "no money down" part of the 1% rule. Really doesn't matter though since it is just a rule of thumb and personal preference.

 

[danygenesis]

Except luxury vehicles are typically the vehicles people get in the 1% rule. They're typically easier to hack because they have higher residuals and a lot of luxury manufacturers let you do MSDs to lower MF

On the contrary. Luxury vehicles usually have lower RV. Depreciation on luxury cars is the worst.

 

[JayceM]

My research shows the opposite but things could be different. For a Mercedes people usually adjust to a 1.3% rule. MSDs don't count as I believe they break the "no money down" part of the 1% rule. Really doesn't matter though since it is just a rule of thumb and personal preference.

MSDs actually don't break that rule if I'm remembering correctly, because you get that money back, you're just paying to lower your MF. However, I'm with you, I don't see anybody getting this thing for 1% of MSRP. I think they've got pretty good numbers for a lease.

______________________________

Help support this site so it can continue supporting you!

 

[TurtleBoy]

MSDs actually don't break that rule if I'm remembering correctly, because you get that money back, you're just paying to lower your MF. However, I'm with you, I don't see anybody getting this thing for 1% of MSRP. I think they've got pretty good numbers for a lease.

Don't they make it meaningless? The supposed point of the 1% rule is to judge whether a lease is good. If you can put down MSDs to get the payment down to 1% then magically you can call it good. You may have an original MF that is 300% higher than the average, a terrible deal, put enough MSDs down and you hit 1%. Wow, a great lease deal because it hits the 1% rule. That is why it is a nonsense rule of thumb. If the person who originally wrote the article that started it all would have said 1.25%, we would all be mentioning that, there is no mathematical or financial reason for using 1%.

A few years ago following the 1% rule would gave given you a terrible deal because you should have been around .5 - .7% with the very low MFs and high subsidies.

 

[Beefer]

Don't they make it meaningless? The supposed point of the 1% rule is to judge whether a lease is good. If you can put down MSDs to get the payment down to 1% then magically you can call it good. You may have an original MF that is 300% higher than the average, a terrible deal, put enough MSDs down and you hit 1%. Wow, a great lease deal because it hits the 1% rule. That is why it is a nonsense rule of thumb. If the person who originally wrote the article that started it all would have said 1.25%, we would all be mentioning that, there is no mathematical or financial reason for using 1%.

A few years ago following the 1% rule would gave given you a terrible deal because you should have been around .5 - .7% with the very low MFs and high subsidies.

What is a MSD?

 

[larrymg1]

What is a MSD?

Me too. MSD???

 

[TurtleBoy]

What is a MSD?

Multiple Security Deposits. Some manufacturers allow you to lower the money factor by giving them more deposits to hold. For example, using made up numbers lets say your monthly payment is $500 and your money factor is .00175. If you give them $1,500 (3 MSDs) you may get the MF dropped to .00150. Saves you on the monthly payments and there is a little risk but you do get return for your money since it is saving you in payment. Nothing wrong with MSDs, just when using them to justify a lease meets the 1% rule. Hopefully that makes sense.

 

[Beefer]

Multiple Security Deposits. Some manufacturers allow you to lower the money factor by giving them more deposits to hold. For example, using made up numbers lets say your monthly payment is $500 and your money factor is .00175. If you give them $1,500 (3 MSDs) you may get the MF dropped to .00150. Saves you on the monthly payments and there is a little risk but you do get return for your money since it is saving you in payment. Nothing wrong with MSDs, just when using them to justify a lease meets the 1% rule. Hopefully that makes sense.

It does...thanks!!

More info if you really want to dig in...

Understanding multiple security deposit leases | Cartelligent

 

[TurtleBoy]

It does...thanks!!

More info if you really want to dig in...

Understanding multiple security deposit leases | Cartelligent

Good. Thanks I will check it out.

 

[Beefer]

Good. Thanks I will check it out.

So...MSD’s are refundable at the end. Any chance of losing them?...any fine print?

So you essentially lend money to lower your payment. Essentially you are earning the same interest as your MF. The question is...could you earn higher interest elsewhere?

Very interesting. If there is zero chance of losing the MSD(s)...I may consider it. Otherwise...it’ll just go to booze.

 

[TurtleBoy]

So...MSD’s are refundable at the end. Any chance of losing them?...any fine print?

So you essentially lend money to lower your payment. Essentially you are earning the same interest as your MF. The question is...could you earn higher interest elsewhere?

Very interesting. If there is zero chance of losing the MSD(s)...I may consider it. Otherwise...it’ll just go to booze.

Yes, you could lose them if you damage the car, terminate the lease, stop paying, etc. If you go full term and return the car in good condition then you will get them back.

You aren't earning the MF, you are earning the savings from the lower payments each month. Lets say it saves $50 a month in payments so 600 a year. Divide that into what your deposits were and that is your return. We would need real numbers to make a meaningful calculation since it will depend on the original lease payments, MF, MF reduction etc. I would think the return would be quite a bit higher than you would get in a savings/money market account.

I don't even know if Genesis does MSDs or not. I also don't know if all dealers have to deal with them since they are from corporate or not. I would imagine they would since it is not out of their pocket. I would mention anything though until you have all of the normal leasing/deal worked out so things aren't complicated.

Hopefully the lease forum on Edmunds will get some 2019 Genesis threads up soon. We can ask their is Genesis does MSDs and if all dealers do it.

 

[TurtleBoy]

From July 2017, could have changed.

 

[larrymg1]

From July 2017, could have changed.

View attachment 15688

I was never aware of "MSD" available for Hyundai.