Getting ready to lease, got quote

[abenc]

Hello everyone,

I have been reading the forum for quite some time now and finally just joined as I am getting ready to get 2010 4.6 + Tech.Pkg. Thank you for the wealth of info about the car here.

I want to lease the car, and here is the quote I got. Is this good, bad, or neither?

Sales price: 40,300
Fees: 549
Sales Tax: 1,107
Trade-in: 3,500
Net Sales Price: 38,456
with 1,000 due at signing, the monthly payment is around 600 for 36mo/15K.

which means that the residual value and money factor are not anywhere near good. If I were to buy it instead, and finance, the payment would probably be very close, I am torn.

Is it a good deal? Is there any room to negotiate (apart from trying to bring the price down)? Is it worth waiting few more month for a better deal/promotion to come about?

Appreciate all your help and thanks

PS. I am in Cary, NC.

 

[TJPark01]

You're trying to eat,type and drive all at the same time. You need to handle all these transactions separately.
1. You're leasing too expensive of a car. Lease the V6.
2. 15k miles is way high which is crushing you're residual value. If you drive this much, buy a car.
3. Don't mix a trade in with a lease.
4. Should be nothing due at signing. All fees,taxes,etc, should be built into the lease.
5. Lease should be done at dealer cost, which is not 40,300, should be 1500-2k less.
6. Don't put any money down.

You need to research some more about leasing. Check websites or books. Remember, it's a shitty economy, they need your money more than you need a car.

 

[abenc]

You're trying to eat,type and drive all at the same time. You need to handle all these transactions separately.
1. You're leasing too expensive of a car. Lease the V6.
2. 15k miles is way high which is crushing you're residual value. If you drive this much, buy a car.
3. Don't mix a trade in with a lease.
4. Should be nothing due at signing. All fees,taxes,etc, should be built into the lease.
5. Lease should be done at dealer cost, which is not 40,300, should be 1500-2k less.
6. Don't put any money down.

You need to research some more about leasing. Check websites or books. Remember, it's a shitty economy, they need your money more than you need a car.

Thanks a lot, TJPark01, these are all valid points. Appreciate it.

I am not a big fan of leasing myself, the only reason I wanted to lease it was because I did not want (most likely) to keep it longer than 3 years and I was not sure about how much it is going to cost if I wanted to purchase and then later sell it. I am afraid I'd own more than its' cost.

15K miles lease is probably more than I need, I am raking up about 12K a year, but I just wanted to play it safe. They said going from 12K to 15K would add about 10-12$$ to a monthly payment. Do you think the residual value is affected a lot? (I am going to check with dealership too)

A thousand at signing was an option, they gave me three quotes -- 0, 1000 and 2000 due at signing.

Btw, the finance tax is 3%.

Thanks for your comments again.

 

[TJPark01]

Read this website. Download the excel spreadsheet.
http://www.carbuyingtips.com/download.htm
It's all math. You need to know what the inputs are. Once the dealer knows you know what you are talking about, they will stop playing games with you. If you go in, there with "scenarios" they will find a way to jack you. You have to know what you want. I have leased my last 4 cars over the phone with the sales managers. New cars are a volume business. They know they are going to get paid on the financing and service, parts and customer retention. That is why they are willing to let the cars go at cost or at a loss.
You get hosed financially with leasing no doubt. BUT...it is viable if you do it for one of several reasons...
1. Tax write off, use it for work (which is what I do).
2. You are betting against gasoline and think that electric/hybrid/diesels will be so prevalent in a few years, that a car getting 20 mpg combined will seem silly.
3. You're so loaded, you don't care.

 

[abenc]

Thanks for the link; will check it out.

My reason for wanting a lease is definitely #2 (and some places for #1 in the future but not now), you nailed it.

Regards and thanks

 

[sandy]

Here's one of the better articles on leasing I've read: http://www.edmunds.com/advice/leasing/articles/102826/article.html

I've been leasing for the past 2o years to avoid the hassle of having to negotiate at lease-end, the trade in ... as well as the new car purchase. Historically, lease deals have been pretty good and, assuming a 3-year term, didn't cost much more than purchasing.

Another advantage of leasing is you pay sales tax (in most states) only on the lease payments...not the total cost of the car. Of course, in leasing there is a Bank or Acquisition Fee ($595) which eats into the sales tax saving.

A simple way to make a lease vs. buy analysis is to multiply your lease payments by the term of the lease and add in your up-front costs as well as the $400 DISPOSITION FEE DUE AT THE END OF THE LEASE IF YOU DON'T BUY THE CAR. They may have not mentioned that to you.

Compare to your total purchase costs less what you think you will be able to sell/trade the car for at the end of 36 months. This is the tricky part because it's hard to predict the value. You might use the residual value shown in the lease but I'm not sure if this is a retail value (what a dealer could sell it for). You may have to sell/trade for thousands less.

Maybe TJ can shed some light on the residual.

 

[abenc]

5. Lease should be done at dealer cost, which is not 40,300, should be 1500-2k less.

The invoice for 4.6 + Tech. seems to be $40,575 (according to edmunds). The MSRP is 43,800. Both figures include destination charge of $800. I got the selling price of 40,300.

Am I missing something?

 

[jjsC6]

You're trying to eat,type and drive all at the same time. You need to handle all these transactions separately.
1. You're leasing too expensive of a car. Lease the V6.
2. 15k miles is way high which is crushing you're residual value. If you drive this much, buy a car.
3. Don't mix a trade in with a lease.
4. Should be nothing due at signing. All fees,taxes,etc, should be built into the lease.
5. Lease should be done at dealer cost, which is not 40,300, should be 1500-2k less.
6. Don't put any money down.

You need to research some more about leasing. Check websites or books. Remember, it's a shitty economy, they need your money more than you need a car.

Items 1 & 2 make no sense at all. If you are going to offer advice and don't want to lose your credibility, don't make stupid statements. Also, point 5 has nothing to do with a lease vs buy decision. The point is the same.

 

[TJPark01]

The invoice for 4.6 + Tech. seems to be $40,575 (according to edmunds). The MSRP is 43,800. Both figures include destination charge of $800. I got the selling price of 40,300.

Am I missing something?

Sorry, was looking at 2009

 

[TJPark01]

Items 1 & 2 make no sense at all. If you are going to offer advice and don't want to lose your credibility, don't make stupid statements. Also, point 5 has nothing to do with a lease vs buy decision. The point is the same.

Points 1 and 2 are to keep the cost of the payments lower. The spread between the V6 & V8 cars isn't that great and since this is basically a rental, there is no reason to pay more for something that you ultimately aren't going to own and is going to depreciate rapidly in the first 3 years. Unless you've got something constructive to add. Pointing out something and blanket calling it "stupid" isn't helping your credibility.

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[abenc]

Points 1 and 2 are to keep the cost of the payments lower. The spread between the V6 & V8 cars isn't that great and since this is basically a rental, there is no reason to pay more for something that you ultimately aren't going to own and is going to depreciate rapidly in the first 3 years. Unless you've got something constructive to add. Pointing out something and blanket calling it "stupid" isn't helping your credibility.

It does make sense that the residual value of V8 is going to be lower (percentage-wise) than that of V6. Since I drove V6x all my life, I wanted to get V8 before the price of gas really goes up, which I expect it to, and before there are scores of electric/hybrid cars around. For this reason, I did not want to buy the V8. But at the same time, I do not want pay more, if i can pay less, kind of obvious So just looking for more wiggle room for negotiation.

Btw, Hyundai APP site just gave me 38,485.00 as estimated invoice price. I wonder what dealership folks are going to say to that

 

[BacktoHyundaibychoice]

To each his own on lease versus purchase, but here's my 2cents:
Would you buy a house for $400K if you knew that in 3 years it would be worth $200K?
Would you do the same on your (usually) second largest expense?

As always, your mileage may vary.

 

[abenc]

To each his own on lease versus purchase, but here's my 2cents:
Would you buy a house for $400K if you knew that in 3 years it would be worth $200K?
Would you do the same on your (usually) second largest expense?

As always, your mileage may vary.

Would you rather rent it for $300K, knowing that you will have to go live in a tent in three years in either case?

Cars' values, unlike houses, never go up, only down. But, admittedly, some do more than others. And this process starts right the minute you leave the dealership yard.