Lease ending ... help negotiating remainder/residual on contract in buying her.

[allisondbl]

OK. So ... the lease on my 2015 Hyundai Genesis Ultimate is ending and I haven't found any new car out there that's better tech bang for the buck at the price of my buyout ($31,470) so I'm pretty sure I'm going to buy her. (I leased believing the Hyundai's leading-level tech would move into a less expensive car by now but my research shows the only cars that still approach her tech-wise are pricier.)

Hyundai Finance has flatly said we don't negotiate the buyout/residual price; contract price is what you pay us. Research shows I MIGHT save at most $2K by turning her in and buying someone else's car - lessened by charges for damage and the turn-in fee - but there's no better deals in my area (NY/NJ/CT) and I've done my maintenance and while I ride her hard, it's better than buying a pig in a poke.

So here's the question: has ANYONE been able to negotiate with either Hyundai Finance or, more likely, a local dealer to whom you'd be turning her in, for a better price than the residual contract, maybe using the glut of sedans in general on the market and the money they WON'T have to spend to get it up to CPO speed?

TL; DR: anyone bought their lease out and paid less than the residual/contract price and HOW? All help gratefully appreciated.

Thanks gals and guys, Alley

 

[balfor]

I have heard the same, that Hyundai will not negotiate the residual. Makes sense in a way as it could be messy for them if everyone was trying to lower the residual, but on the other hand it is foolish in this market where sedans are in lower demand.
On a side note did they offer you any incentives to lease a new Genesis? I would think they would be pressuring you to sign another lease.

 

[Comp1]

At the end of the day if you like the car and want to own it then buy it. If no deals abound near you then you have your answer. What I think is odd about your buyout price is that its $2K higher than my buyout. I have a 2015 Ultimate RWD as well. It may have been the difference of cost to get into the car but locally when I assess its value I"m barely out of the $27K range. My car is low mileage (just rolled 23K) and my lease is up in March of 18. I"m not going to buy it but pricing like cars NOW are much less. My next car is already on order and I've sworn to never lease again.

 

[sensazngen]

OK. So ... the lease on my 2015 Hyundai Genesis Ultimate is ending and I haven't found any new car out there that's better tech bang for the buck at the price of my buyout ($31,470) so I'm pretty sure I'm going to buy her. (I leased believing the Hyundai's leading-level tech would move into a less expensive car by now but my research shows the only cars that still approach her tech-wise are pricier.)

Hyundai Finance has flatly said we don't negotiate the buyout/residual price; contract price is what you pay us. Research shows I MIGHT save at most $2K by turning her in and buying someone else's car - lessened by charges for damage and the turn-in fee - but there's no better deals in my area (NY/NJ/CT) and I've done my maintenance and while I ride her hard, it's better than buying a pig in a poke.

So here's the question: has ANYONE been able to negotiate with either Hyundai Finance or, more likely, a local dealer to whom you'd be turning her in, for a better price than the residual contract, maybe using the glut of sedans in general on the market and the money they WON'T have to spend to get it up to CPO speed?

TL; DR: anyone bought their lease out and paid less than the residual/contract price and HOW? All help gratefully appreciated.

Thanks gals and guys, Alley

When you return a lease the car goes back to the manufacture. In this case Hyundai. Hyundai then will bring the car to auction where dealers go to buy. One option is to tell your dealer the max price you want to pay and to go to the auction and purchase the car for you. Dealers don't mind because at the auction they can probably buy your car for about $21k or less since trade in value is about $25k.

 

[TroyK]

a buddy of mine was able to negotiate a lease buyout on his camry a year or so ago. he basically offered toyota leasing the book value of the car which was almost 2k lower than the pre-determined lease end value. it took them a day or two, but they did accept his bid. might of actually saved the leasing company some money in the long run.

 

[Mcc]

What sense does it make for the dealer to accept less than the contract says they are entitled to? If they were buying another car at the same time that would explain a lot.

 

[Mark_888]

What sense does it make for the dealer to accept less than the contract says they are entitled to? If they were buying another car at the same time that would explain a lot.

You are correct that the dealer might negotiate (make up part of the difference) if you buy another car from them after the lease. But if not buying another car from that dealer, the dealer is out of the picture, because it is between the customer and HMA Finance, and the dealer has no say in the matter.

 

[Mcc]

You are correct that the dealer might negotiate (make up part of the difference) if you buy another car from them after the lease. But if not buying another car from that dealer, the dealer is out of the picture, because it is between the customer and HMA Finance, and the dealer has no say in the matter.

I reality I doubt the dealer is going lose anything on the lease. They are just going take it out of the new car deal and make it "seem" like they are discounting the residual.

 

[Mark_888]

I reality I doubt the dealer is going lose anything on the lease. They are just going take it out of the new car deal and make it "seem" like they are discounting the residual.

Correct. As others have mentioned, the residual is handled by HMA Finance, and the dealer has no power to change that. Whether or not HMA Finance is willing to negotiate is up to them.

 

[BrazGenesis]

One generic question on the same theme: has someone bought the car for the residual? I have one year ahead in my leasing, but may end up with only 14K in the odometer.
I can buy an used car from myself...so I know it is perfect.
I am truly wanting to buy unless it is outrageously over market price.
Anyway, there is, in my opinion, one unavoidable extra expense: extended warranty.

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[Aquineas]

To the OP: how did this turn out? I don't typically lease vehicles because I rack up miles too quickly, but I'm still curious.

 

[waz]

This brings up an interesting question: If you do purchase your own leased vehicle, are you the "original owner" and therefore eligible for Hyundai's 10 year 100k mile power train warranty, or is HMA the original owner and you get 5 years/60k miles?

 

[Aquineas]

This brings up an interesting question: If you do purchase your own leased vehicle, are you the "original owner" and therefore eligible for Hyundai's 10 year 100k mile power train warranty, or is HMA the original owner and you get 5 years/60k miles?

I think technically the leasing or finance company is considered the owner. I think only certified pre-owned vehicles get any kind of warranty.

 

[opticsguy]

I'm in the opposite position. I leased my 2015 for work and have only 13K miles on it and the lease is up next March. It hasn't had any of the common problems so far. I'd like to negotiate also, but with the low miles I don't have much leverage. The lease essentially became a low-interest loan.

 

[BrazGenesis]

No information on "sweetening" the inflexible residuals with low interest financing or free/discounted extended warranty?

 

[Mcc]

No information on "sweetening" the inflexible residuals with low interest financing or free/discounted extended warranty?

This seems like wishful thinking. The lease is held by Genesis finance not the dealer. There is no reason for either to take a loss unless they can make it up elsewhere, like selling (or leasing) you another car. This is just business.

Now, If you buy the car you are leasing, why would you need an extended warranty? You stay the registered owner and Genesis leasing was the lien holder. The original warranty should stay in effect.

 

[BrazGenesis]

This seems like wishful thinking. The lease is held by Genesis finance not the dealer. There is no reason for either to take a loss unless they can make it up elsewhere, like selling (or leasing) you another car. This is just business.

Now, If you buy the car you are leasing, why would you need an extended warranty? You stay the registered owner and Genesis leasing was the lien holder. The original warranty should stay in effect.

Yes, it stays. But for two years. And the electronic console is covered just up to 3 years. Extending the warranty permits comfortably extending ownership of a wonderful car.

 

[Mcc]

You are absolutely right. I mistakenly thought it was covered for 5 years.

 

[Mark_888]

Yes, it stays. But for two years. And the electronic console is covered just up to 3 years. Extending the warranty permits comfortably extending ownership of a wonderful car.

Starting in MY 2016 and going forward, Hyundai Motor America changed the warranty across all vehicles:

• Radio and audio systems (i.e., radio, compact disc player, DVD player, navigation system and Bluetooth®): for MY 15 and prior, 3 years/36,000 miles—Equus: 5 years/60,000 miles
• Radio and audio systems (i.e., radio, compact disc player, DVD player, navigation system and Bluetooth®): for MY 16, 5 years/60,000 miles for all models

Hyundai warranties in other countries outside the USA may be different.

 

[BrazGenesis]

You are absolutely right. I mistakenly thought it was covered for 5 years.

I would add that the final resale value of a, let's say, 6 year old car with 2 years of warranty ahead easily pays for the cost of the warranty. The value of a sophisticated
car with age and no warranty at all goes south dramatically.