G70 Lease Comparisons and Discussion (USA)

[Beefer]

Not only the two engines but also whether RWD or AWD. From Edmunds, January numbers for G70 36/10:

2.0T RWD - .00004 and 50%; $2500 lease cash
2.0T AWD - .00001 and 51%; $2000 lease cash
3.3T RWD - .00002 and 53%: $1000 lease cash

And 3.3T AWD?

 

[TurtleBoy]

And 3.3T AWD?

3.3t is the same for AWD and RWD

 

[danygenesis]

And 3.3T AWD?

Same as RWD

 

[HyperM3]

Not only the two engines but also whether RWD or AWD. From Edmunds, January numbers for G70 36/10:

2.0T RWD - .00004 and 50%; $2500 lease cash
2.0T AWD - .00001 and 51%; $2000 lease cash
3.3T RWD - .00002 and 53%: $1000 lease cash

Are you sure theres 4 Zeros in the MF and not 3? That seems extremely low. On the 3.3 that MF would equal .048 interest rate! Also, what terms are those rates based on (Months/Miles)?

 

[Beefer]

This is where you post/request MF/RV data...

2019 Genesis G70 Lease Deals and Prices

And yes...those are 4 zeros. Very impressive !!

 

[TurtleBoy]

Are you sure theres 4 Zeros in the MF and not 3? That seems extremely low. On the 3.3 that MF would equal .048 interest rate! Also, what terms are those rates based on (Months/Miles)?

As noted in the post, those are for 36/10.

 

[HyperM3]

As noted in the post, those are for 36/10.

Sorry, missed that. I see the MF stays the same regardless of miles but RV goes to 50% for 15k miles.

 

[danygenesis]

Sorry, missed that. I see the MF stays the same regardless of miles but RV goes to 50% for 15k miles.

That's how a leased my 3.3t Prestige 12/36k. MF: .00002, RV: 52%

 

[Electrode]

Out of curiosity, how does the G70 residual values compare to a comparable BMW 340i or an Audi S4? Are these realistic predictions of actual value lost over 3 years?

 

[Beefer]

Out of curiosity, how does the G70 residual values compare to a comparable BMW 340i or an Audi S4? Are these realistic predictions of actual value lost over 3 years?

RV is very close. MF is waaaaay better.

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[HyperM3]

Out of curiosity, how does the G70 residual values compare to a comparable BMW 340i or an Audi S4? Are these realistic predictions of actual value lost over 3 years?

The problem with looking at it that way is that its not always apples to apples. You have to look at the MF as well. When I worked at Audi, every month the MF and RV could change. If MF went down, RV went up...if MF went up, RV went down. Most of the time it would keep the payments relatively the same, just differed where the money went...to the bank or to the principal. That being said, RV isnt necessarily a direct idea of what the car is worth on trade value. A BMW or Audi can have the same RV but Im sure they would have a better trade value after the same time frame. I have actually made money on each of my Audi leases because I traded them on my next lease instead of turning them in.

 

[Electrode]

The problem with looking at it that way is that its not always apples to apples. You have to look at the MF as well. When I worked at Audi, every month the MF and RV could change. If MF went down, RV went up...if MF went up, RV went down. Most of the time it would keep the payments relatively the same, just differed where the money went...to the bank or to the principal. That being said, RV isnt necessarily a direct idea of what the car is worth on trade value. A BMW or Audi can have the same RV but Im sure they would have a better trade value after the same time frame. I have actually made money on each of my Audi leases because I traded them on my next lease instead of turning them in.

What's the point of manipulating MF vs residual value, if the payment is the same?

 

[TurtleBoy]

What's the point of manipulating MF vs residual value, if the payment is the same?

Mainly marketing, just trying different things to get people attracted to the car. There are also some market forces at play in regards to resale value, economy, etc.

 

[HyperM3]

What's the point of manipulating MF vs residual value, if the payment is the same?

You know what, I actually was typing too fast when I made that post and its actually "When MF goes down RV goes down, when MF goes up, RV goes up".

So basically the bank is saying if the car isnt going to be worth as much at the end, we wont charge as much financing and more of the payment goes to the principal because we get the car cheaper. If the car is going to cost more to buy at the end and they dont get enough money out of reselling it, they will charge more interest through the lease.

For people who decide to keep the car after the lease(buy it out), the best way to do it is to catch a lease when the RV is at its lowest because youre paying more towards the principal, and the buyout at the end will cost less to finance.

 

[COToad]

Anyone have the February MF and residuals yet?

 

[danygenesis]

Anyone have the February MF and residuals yet?

Nothing yet, maybe tomorrow will have them.

 

[Electrode]

You know what, I actually was typing too fast when I made that post and its actually "When MF goes down RV goes down, when MF goes up, RV goes up".

So basically the bank is saying if the car isnt going to be worth as much at the end, we wont charge as much financing and more of the payment goes to the principal because we get the car cheaper. If the car is going to cost more to buy at the end and they dont get enough money out of reselling it, they will charge more interest through the lease.

For people who decide to keep the car after the lease(buy it out), the best way to do it is to catch a lease when the RV is at its lowest because youre paying more towards the principal, and the buyout at the end will cost less to finance.

The bank figures the car’s value will be low at the end. They reduce the interest rate so I can pay off more principal instead of finance charge. But who absorbs this loss?

 

[TurtleBoy]

The bank figures the car’s value will be low at the end. They reduce the interest rate so I can pay off more principal instead of finance charge. But who absorbs this loss?

I don't think the explanation is quite correct. While there are some market/financing influence, the money factor is chosen more for strategic reasons in regards to the best way to get people to lease. Many times the RV is inflated as a way to subsidize the lease or the MF is extremely low, this is done to get people a lower payment or just appear that they are with such a low MF. Many times lease cash is also used as an enticement. In general there is no correlation between the movement of RV and the movement of MF.

There is no principal when it comes to leasing. You pay a rent charge based on the depreciation amount and residual amount. If you would want to purchase the car at the end of the lease then you would pay the residual amount.

 

[TurtleBoy]

Anyone have the February MF and residuals yet?

For 3.3t AWD:

36/12
.00002 MF and 52% residual
$1000 lease cash

 

[danygenesis]

For 3.3t AWD:

36/12
.00002 MF and 52% residual
$1000 lease cash

And for the 3.3T RWD we got the same numbers. LOL at Edmunds I ask exactly after you and got the answer just behind you with the same numbers for both 3.3T AWD and RWD which BTW didn't change compared to January.