Great Lease

[Bernster]

Just leased a 2017 3.3T G90 for 36 months, 10,000 miles per year for $699 plus sales tax per month . Nothing down. Only had to pay first month and about $200 for tag. Plus Genesis leasing paid last month on my 2015 Genesis. Cap reduction was $12,500.

 

[BARRYW]

There is no such thing as a good lease. You always lose money versus purchasing.

 

[John F. Tamburo]

Just leased a 2017 3.3T G90 for 36 months, 10,000 miles per year for $699 plus sales tax per month . Nothing down. Only had to pay first month and about $200 for tag. Plus Genesis leasing paid last month on my 2015 Genesis. Cap reduction was $12,500.

so did you pay in the $12.5K cap cost reduction or just the ~$899

 

[XBOHDPuKC]

Cap cost reduction means 1500 owner cash + 11000 lease incentive. This actually not a bad lease at all, if you get a good money factor - mine was a bit over 1%, which anyone will have hard time to find a loan at such a rate. So if after 3 years you want to keep a car you'll have to find a used car loan and basically you'll get a great carat a great OTD price.

 

[Bernster]

Leasing is better than buying for tax purposes if you use for business. Another benefit of leasing is you don't have to negotiate over trade in value. If you want out of a lease you can get rid of it on swapalease.com. I think cap cost reduction in my case was $11,000 lease incentive and $1,500 loyalty discount. My out of pocket cost was first month rent and tags. This is my second Genesis I have leased with this salesman and dealer. There was no negotiation. He just gave me the bottom line price. I like that.

My friend just leased a 2017 Mercedes S550 for $1,400 per month. A G90 for half that cost is a steal in my opinion.

 

[Mcc]

In this case leasing is MUCH better because Genesis is offering an $11,000 incentive! You can't get that sort of a discount when you purchase outright or do your own financing.

However you can also get the best of both worlds. If you really don't want to lease go ahead and lease and get the incentive in the capitalized cost. Then wait a few days and find your own low interest financing and buy out the lease. No penalty, no extra cost. All the benefits none of the drawbacks. Easy as pie!

 

[XBOHDPuKC]

In this case leasing is MUCH better because Genesis is offering an $11,000 incentive! You can't get that sort of a discount when you purchase outright or do your own financing.

However you can also get the best of both worlds. If you really don't want to lease go ahead and lease and get the incentive in the capitalized cost. Then wait a few days and find your own low interest financing and buy out the lease. No penalty, no extra cost. All the benefits none of the drawbacks. Easy as pie!

If you get a good money factor, it doesn't make sense finance right away - just wait for the lease end and then get a usual loan for the remainder of the value.

 

[Mcc]

If you get a good money factor, it doesn't make sense finance right away - just wait for the lease end and then get a usual loan for the remainder of the value.

You are right but with this leasing incentive you have to go with Genesis leasing and you won't get a good money factor. My guess is it will be the equivalent of 5%. That is how they make their money back (it's got to come from somewhere). When they did this incentive at the beginning of the year that is how it worked out and in fact the dealer admitted it was a lousy factor and I should refinance later.

Be careful about money factors! They can tell you it's anything they want or that it's approximately something. But it is not written down anywhere in the contact so unless you calculate yourself I would not count on anything they tell you it is. They know it's difficult for the buyer to calculate it themselves and they count on that but it is doable and well worthwhile.

 

[Mark_888]

Leasing is better than buying for tax purposes if you use for business.

As a retired CPA, I can tell you that is completely 100% false. Old wives tale. Whether buying or leasing, you can only deduct the percentage of the car used for business (if not used 100% for business).

For a lease, you expense the lease payment. For a purchase, you expense the depreciation. Sometimes the depreciation expense is more than an equivalent lease expense due to accelerated depreciation that may be allowed for tax purposes. The greater the taxable expense, the less taxes are paid.

The main benefit is administrative, in that a company that leases and wants to get a new car after the lease runs out, does not have to go through the hassle of selling the old car. However, a lease will usually charge a moderate disposal fee. Leases are a matter of convenience for businesses, not lower taxes.

 

[msv]

FYI, I just completed a lease with Genesis, money factor was .00051, which is 1.22%. and yes, neither number is in the contract. You have to ask the dealer while you're negotiating, and they will give you the rate for people with the best credit rating. Then make sure you ask again after they do the credit check to make sure they don't tell you "oh, you didn't qualify for that rate, yours is higher". I ended up leasing because I got $3750 incentive from Genesis that the dealer would not give me if I bought the car outright. The general advice to be careful with leases is very good, though. There are about 15 different numbers on the lease agreement, and none of them is equal to the price of the car. I spent at least 30 minutes having the finance guy explain each number and how it was calculated.

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[XBOHDPuKC]

You are right but with this leasing incentive you have to go with Genesis leasing and you won't get a good money factor. My guess is it will be the equivalent of 5%. That is how they make their money back (it's got to come from somewhere). When they did this incentive at the beginning of the year that is how it worked out and in fact the dealer admitted it was a lousy factor and I should refinance later.

Be careful about money factors! They can tell you it's anything they want or that it's approximately something. But it is not written down anywhere in the contact so unless you calculate yourself I would not count on anything they tell you it is. They know it's difficult for the buyer to calculate it themselves and they count on that but it is doable and well worthwhile.

I'm not suggesting going with the exact Hyundai deal. You can "customize" your lease and still keep the 11000 lease incentive + owner rebate + boostup downpayment match. I'm paying $700 on 12K / 36 months with total cap reduction of 12750 and money factor of 0.00044, which translates to 1.06% APR - I think it's a fairly good deal on this car.

PS: you are correct, money factor IS NOT on the contract, however the dealer gave me a worksheet that had the MF spelled out: 0.00044, which is roughly 1.06%. Now, I totally spent almost an hour now pouring over the contract and figuring out all numbers (again). Turns out, the numbers are correct, however, here's the catch. If you want to buy out the vehicle at the end of the lease, it only makes sense to make a cash buyout. If you finance the residual, you are paying the interest twice, as the simplified formula for lease payment calls for (Net adj gross + residual) * money factor. Adding residual to the amount the interest is charged is a bit counter intuitive at first, but that's the way of life

- - - Updated - - -

FYI, I just completed a lease with Genesis, money factor was .00051, which is 1.22%. and yes, neither number is in the contract. You have to ask the dealer while you're negotiating, and they will give you the rate for people with the best credit rating. Then make sure you ask again after they do the credit check to make sure they don't tell you "oh, you didn't qualify for that rate, yours is higher". I ended up leasing because I got $3750 incentive from Genesis that the dealer would not give me if I bought the car outright. The general advice to be careful with leases is very good, though. There are about 15 different numbers on the lease agreement, and none of them is equal to the price of the car. I spent at least 30 minutes having the finance guy explain each number and how it was calculated.

They initially gave me the estimates based on a 700 credit score money factor. I specifically asked them to give me the best possible score money factor and it came down to 0.00044, which they kept saying at every step "subject to credit verification". They use Equifax, so it's worth knowing your score upfront to have a more meaningful discussion with a lesser possibility of an unpleasant surprise when you are well into the procees.

 

[riknchar]

I leased my G90 in Patagonia Blue/Ivory interior about 6 weeks ago. I traded in a 2008 Lexus LS600hL (the "Flagship Lexus LS"). I had negative equity to overcome, but my straight-up lease price was around $660 plus tax (my payment is actually $850, because I rolled in quite a bit of negative equity).

So far, I am loving the G90! I was a long-time Lexus fan, and still own a pristine 2006 Lexus SC430 (retractable hardtop convertible), which I will probably own until I die. It was tough getting me away from the Lexus LS line, but I was not pleased by the post-2013 models (the Lexus spindle grill just keeps getting bigger and bigger), and am not a fan of the sporty turn that Lexus is trying to take. I'm really an old-school guy who loves understated luxury, incredibly smooth and composed ride, and outstanding value. The G90 scratched all of those itches, and had amazing technology as well. My LS600hL was a great car, and gave me 3 years of flawless service, but I was ready to move to a newer model with some of the modern conveniences, and I don't regret choosing the G90.