Lease End Purchase Option - Successful Negotiation?

[Vlad92]

Has anyone who purchased their Genesis at the end of their lease had success negotiating a lower purchase price? My 27 month lease on a 2009 base model 3.8 Genesis matures on 3/29/11 and my purchase option is $19,470. The car is in excellent condition with 21,000 miles on it. While this price seems reasonable, money is tight and I’m trying to make every dollar count. I’d like to hear any experiences successfully lowering the purchase price. Any advice would be greatly appreciated before I call Hyundai Finance to try.

Thanks in advance!

 

[brihvac]

Sounds pretty good if you want to stay with a Genesis. You can try to negotiate, never hurts to ask, but I doubt they will because if its nice as you say it is they can sell it on their lot for more.

I myself would go for a new Sonata if money is an issue. Very nice car and good gas mileage.
I am going to try and get rid of my Genesis and get a new Sonata Limited turbo.

 

[iqjumpuw]

That's actually a pretty decent lease buyout price. It's very difficult to negotiate the lease buyout price no matter which dealership you go to. If you kept really good care of the car, it may make sense to just purchase the vehicle outright.

 

[msitter]

That is a pretty good price but you may be able to negotiate an extended warranty. They will probably be firm on the price because that is what you agreed to when you signed the lease and they can definitely sell it for much more than that.

 

[OldSpice]

Negotiating a lease buyout can't be done for tax reasons. Even if the car
was worth far less than the buy out price they would not negotiate.
Hyundai can not write off a loss to the leaser, they can only lose if they sell the car at action.

 

[BacktoHyundaibychoice]

Take your car to Carmax and see what they'd pay for it. If more than $19,700 buy the car from Hyundai and sell it to Carmax for a profit.
Or, see what the dealer would offer you as a trade. Even if a little less than Carmax, you'll only pay taxes on the difference between the Gen and new car potentially saving big $$.
Good luck.

 

[iqjumpuw]

It's too much of a hassle to sell your car to Carmax. You would hardly make any profits anyway after you pay a fee and go through with all the paperwork not to mention you having to pay taxes.

You can negotiate the heck out of trading in your vehicle for something else though. Or even a new Genesis. When I returned my Lexus IS250 after the 3 year lease, they offered me some crazy deal on the new 2011 IS250. I was very tempted. Just go into the dealership like you want to purchase the car outright. The dealership will make their money from the lease return so don't let them know that is your intention. Act like you're going to buy the car with cash or show some interest on other cars at the dealerlot.

 

[brihvac]

Fyi
A dealer I have been getting Sonata pricing from told me tonight to go to another dealer because they are not giving over $20K for Genesis trade ins. He said they just took in a 09 base Genesis with 20K miles and gave $18,500 trade for it.

 

[chilly mac]

$18,500, huh? Suuure they did... Did it look like this, by any chance?

 

[dg_moore]

$18,500, huh? Suuure they did... Did it look like this, by any chance?

Looks like the silver Genesis came loose on the top deck and rolled off onto the black one as it was going down the ramp.

When I was in high school my best friend's father was a Pontiac dealer. The year Pontiac came out with the "wide track Pontiac" a tech pulled a Bonneville onto the lift, raised it, and the car somehow rolled off sideways. I don't remember the consequences, but I don't think the employee received a very good performance review...

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[brihvac]

$18,500, huh? Suuure they did... Did it look like this, by any chance?

Im just telling you. Im trying to get rid of my Genesis right now and thats why he told me not to do it with his dealership. They dont bring crap around here. He has a nice 09, 3.8, Premium plus, 16K miles on his lot right now for $25K.
Heres the emails he sent me:

I was looking to trade even up for this Sonata:

Ok.....2.0T no navi....Limited with floor mats, cargo net, and Ipod cable....

MSRP is $27,950

Invoice is $26,398

Dealer cash - $1000
Hyundai owner loyality -$500

You can buy this car for $24,598 plus tax and tag,,,,,,,, Venetian red with camel .... Jim

Here is what he sent me about the Genesis trade. I have also got numbers slightly higher from other dealers. Highest I got was almost $23K


Brian,
The harder I try the worse it gets.... The 2009 Genesis market is very light numbers wise on trade in's. We took one in yesturday a blk/ blk without sunroof and it had 28k miles only got $18,500 so it will be hard to justify $25k for the same car with 10k less in miles and a roof....... I think you need to try and move this car on your own........let me know your thinking Jim


Im not giving mine away thats why Im not going to deal with them (as he suggested) Even though mine is not a base model like his trade, I doubt it would be much more.
Really dont care if you believe me or not.

 

[Vlad92]

Thank you everyone for the input. After further consideration I don’t think I’m going to go down the purchase route for a number of reasons. I will, however, try the CarMax idea as suggested. My understanding from Hyundai is as long as they get a check for the purchase option they don’t care who that money comes from. So if I was to sell the car to CarMax they would pay it off and I would keep the difference (as long as I’m on the plus side). In this scenario I understand there is no tax liability to me as I’m not buying the car… just selling it directly to CarMax. If CarMax were to offer less then the purchase option then it makes sense to just return the car at lease-end.

My lease-end inspection is scheduled in a few weeks and I’m planning to detail the car for that event. That’s when I’ll take it CarMax for an appraisal and see what they offer. Thanks Again!

 

[mdaecher]

Has anyone who purchased their Genesis at the end of their lease had success negotiating a lower purchase price? My 27 month lease on a 2009 base model 3.8 Genesis matures on 3/29/11 and my purchase option is $19,470. The car is in excellent condition with 21,000 miles on it. While this price seems reasonable, money is tight and I’m trying to make every dollar count. I’d like to hear any experiences successfully lowering the purchase price. Any advice would be greatly appreciated before I call Hyundai Finance to try.

Thanks in advance!

I just researched and bought a 2009 Genesis, loaded 4.6. But, I will tell you, that in my resarch, a 2009 BASE with 21k was reatilaing for about 25k. So 19.5k is a good deal, especially since you know what it's been through as the lessee

 

[bigel]

Thank you everyone for the input. After further consideration I don’t think I’m going to go down the purchase route for a number of reasons. QUOTE]

Just a few questions for the benefit of those in the group that may lease in the future. You stated the purchase price in your post, but I'm interested in the features of the car.

I see that it's a V6; how about options?

What were the conditions of your lease? Monthly payment? Years?

Thanks in advance,

 

[Vlad92]

I see that it's a V6; how about options?

What were the conditions of your lease? Monthly payment? Years?

Thanks in advance,

Sorry... missed this question sooner. The car is a base V6 (no options). Here are the specs of my lease:

Purchase Date: 12/29/08
Location: Omaha, NE
Model: Base V6 (silver)
Buy/Lease: Lease
Final Negotiated Price on Sales Invoice: $29700
Term: 27 mos.
Monthly payment (including 7% tax): $400.05
Down Payment: $0
Up front costs paid: $595 (acq fee), $199.50 (doc fee), $55.62 (tax on fees), $10 (title)
Rebate: $500 (lease rebate)
Dealer installed options: $0
Warranty or Protection Plan: $0

The lease-end inspection is Monday so I'll take it CarMax that day as well for an appraisal. Will be interesting what they offer me!

 

[Vlad92]

It's been a long day... but it was a rewarding one. I detailed my Genesis (took 2 hours) and took it to Carmax for an estimate. Their offer was $22,000! So I basically make $2100 given my current lease payoff. I dropped off the car tonight and the deal will process tomorrow!

Then I went to my Hyundai dealer and leased an NEW Genesis (2011 V8 this time!) Using Hyundai Circle Pricing and the $1500 and $250 rebates I got the car for a cap cost of $37,861 (MSRP was $43,950). Based on that my lease payment (3 years / 12K miles) will be $482 (including the 7% tax). I put no money down, but did pay the acquisition fee, doc fee, and first payment totaling $1300.

This is basically $80 / month more then I was paying to lease my base V6. Given what I get with the V8 it seemed well worth it!

I'm very happy about this deal and look forward to 3 more years with a Genesis!

 

[vitacura]

Very nice, Congrats!

 

[sandy]

Vlad 92 -

How does the sales tax work in your deal? Do you have to pay sls tx to Hyundai when you purchase the vehicle does Carmax buy it directly from Hyndai

 

[BacktoHyundaibychoice]

Along Sandy's line of questioning:

1. What did the dealer offer as trade? Somewhere between your purchase price and what Carmax gave you?

2. You must have paid tax on the full $38K purchase price (rounding). How much tax would you have saved on a $17,500 purchase instead?
(That's assuming a dealer trade offer of $20,500 or so.)

In other words, how much better was Carmax after factoring the extra tax paid?

And as the one who suggested Carmax to you in this thread, I'm glad you're happy! I love when a plan comes together...

 

[rmorgan56]

In Ohio, at least, leased-vehicle sales tax is based only on the amount of the car that you use--that is, the difference between the negotiated purchase price and the residual value. My monthly lease bill includes sales tax computed on the amount of the lease payment.