Leasing discussion...

[muisui]

I am a bit confuse on the "so called" promotion lease I got from the members in the forum. (First of all, this is not a brands flight... but I want to compare the real world numbers to make it easy to understand.)

BMW offers 535i (52K sticker) lease for 36 months - total money spent 23704 (Which is 589 x36 plus 2500down) So, average monthly is 660.00

Hyundai offers Genesis 3.8 Tech (40K sticker) lease for 27 months - total money spent 17000 (which is around 530-550 a month plus 2700down), so average monthly is 640.0

How come in a real world, the sticker price of the car got 20%+ difference but the monthly only had a marginally difference at 20.0?

Any insight..?

 

[drew0020]

You are really comparing different lease structures, but usually its residual and money factor that are the biggest changes. I believe the 535i has a higher residual over 36 months then the Hyundai does for 27 months. You also need to look at total cost of the lease, not monthly payment amount because the terms are different. The money factor on the bimmer is much higher than the Genesis as well so you are paying more finance charges with the bimmer.

Hope this helps.

 

[sandy]

I am a bit confuse on the "so called" promotion lease I got from the members in the forum. (First of all, this is not a brands flight... but I want to compare the real world numbers to make it easy to understand.)

BMW offers 535i (52K sticker) lease for 36 months - total money spent 23704 (Which is 589 x36 plus 2500down) So, average monthly is 660.00

Hyundai offers Genesis 3.8 Tech (40K sticker) lease for 27 months - total money spent 17000 (which is around 530-550 a month plus 2700down), so average monthly is 640.0

How come in a real world, the sticker price of the car got 20%+ difference but the monthly only had a marginally difference at 20.0?

Any insight..?

My insights, for what they're worth: I'm not familiar with the BMW lease but I believe the Genesis lease includes the first month payment in the $2700 down so your calculagtion should be $540 x 26. Also, the Geneis lease is for 12,000 miles/year so you would want to check the BMW/milage allowance which may be 10,000. The BMW lease ads I've seen recently were for 2008's which they are trying to clear out to make room for the 2009's. The monthly payment on a 36 month lease is proportionately less than on a 27 month lease but you have to keep the car 9 months longer

 

[muisui]

My insights, for what they're worth: I'm not familiar with the BMW lease but I believe the Genesis lease includes the first month payment in the $2700 down so your calculagtion should be $540 x 26. Also, the Geneis lease is for 12,000 miles/year so you would want to check the BMW/milage allowance which may be 10,000. The BMW lease ads I've seen recently were for 2008's which they are trying to clear out to make room for the 2009's. The monthly payment on a 36 month lease is proportionately less than on a 27 month lease but you have to keep the car 9 months longer

I am comparing the total out of pocket costs but I still did't get it how come a 40K car has a similar pricing structure like a 52K car. When there is about 15% difference in price.

In short, if I am paying 600 to lease a 52K car a month, I should pay 510 if I am going to lease a 40K car where it represents a 15% difference there. (I understood that the residual value plus money factors..) I want to call out regardless how good/bad of a product, does it make sense to go to Genesis if I am willing to spend that much money?

 

[Vlad92]

It looks like the residual on an 09 BMW 535i in December was 59% for 36 months with a base money factor of .00175. The 24 month residual was 64% (all according to bimmerfest.com). So the BMW holds its value more then the Genesis (which had a residual of 59% over 27 months), but you pay more interest (4.2% on the BMW versus 0.65% on the Genesis). I would assume that is the biggest impact on the difference.

I'm also not sure what cap cost the promo lease is based on... when I leased my last BMW the advertised lease was based on a cap cost of MSRP (which you shouldn't pay if you negotiate). The Genesis has the $500 rebate on the lease on top of the negotiated price. I think there are probably still people out there that don't understand leasing and think you can't negotiate the cap cost (which is a costly mistake).

Not sure if that answers anything or not...

 

[t_finan]

The biggest hit in depreciation happens in the early months.

BMWs and other luxury cars do lease well since they hold their value and frequently have attractive interest rate subsidies from the captive manufacturer finance arms.

In your comparison example, you get the benefit of getting a new car 9 months sooner, potentially avoiding the cost of a new set of tires. On the Hyundai side, you could get the next version with any running improvements. And there are less out of pocket servicing costs given the more frequent car exchange.

On the BMW side, you will be driving the "old" body style for a year or more once the 5 series body changes in MY2010. BMW service is included though.

These comparisons aren't exhaustive, you may think of other pro and cons for both cars.

 

[muisui]

It looks like the residual on an 09 BMW 535i in December was 59% for 36 months with a base money factor of .00175. The 24 month residual was 64% (all according to bimmerfest.com). So the BMW holds its value more then the Genesis (which had a residual of 59% over 27 months), but you pay more interest (4.2% on the BMW versus 0.65% on the Genesis). I would assume that is the biggest impact on the difference.

I'm also not sure what cap cost the promo lease is based on... when I leased my last BMW the advertised lease was based on a cap cost of MSRP (which you shouldn't pay if you negotiate). The Genesis has the $500 rebate on the lease on top of the negotiated price. I think there are probably still people out there that don't understand leasing and think you can't negotiate the cap cost (which is a costly mistake).

Not sure if that answers anything or not...

I already had a 335xi in my garage and I am sure we will not get another Bimmer this time. (just using BM as an example).
So, for hyundai genesis 3.8L Tech Pkg with 12K a year. I had nearly perfect credit score... what is the average leasing terms for the genesis? like monthly payment or total out of pocket costs (without tax of course) will you suggest?

 

[drew0020]

Just focus on the purchase price of the vehicle. In my opinion your purchase price should be between $36,500 and $37,500 for the v6 tech plus $500 Hyundai rebate. The following are the lease assumptions: 27 months with .58 residual 15K (.59 for 12K) and .00027 money factor. About $1,747 at lease inception to cover acq fee, doc fee and tax, title, and tags. Your payment should be between $520-$550 per month excluding tax.

 

[BigTrace]

My 27 month lease payment is $483 plus tax which comes to $520 and change for a V6 with tech and 15,000 miles per year prorated to 27 months.

The reason you are getting the "same" relative figure between the BMW and Hyundai is that your simply spreading 23,700 into 36 months while your spreading "less" money over 27 months. Basically, BMW gets you 9 months longer than Hyundai. Most of the time, when you see "low" priced lease deals, they are for long (4 years +) terms with low mileage allowances (10 - 12k) and they can spread the depreciation out further while hiding their money factor.

Bottom line, before deciding to lease, work on the price of the vehicle FIRST, then ask about additional mileage, incentives and a term YOU can live with. In my case, I want the flexibility to trade cars more often and want the dealer/manufacturer to assume the depreciation risk. The shorter the term, the higher the cost, but the less likely you'll end up upside down in the long run as you are paying for the larger depreciation hit mostly up front.

I usually buy, but Hyundai offered leasing terms that were too good to pass up. My money factor works out to be around $16 a month so essentially, I'm borrowing the money for free. Try to get free money from BMW.

 

[drew0020]

My 27 month lease payment is $483 plus tax which comes to $520 and change for a V6 with tech and 15,000 miles per year prorated to 27 months.

The reason you are getting the "same" relative figure between the BMW and Hyundai is that your simply spreading 23,700 into 36 months while your spreading "less" money over 27 months. Basically, BMW gets you 9 months longer than Hyundai. Most of the time, when you see "low" priced lease deals, they are for long (4 years +) terms with low mileage allowances (10 - 12k) and they can spread the depreciation out further while hiding their money factor.

Bottom line, before deciding to lease, work on the price of the vehicle FIRST, then ask about additional mileage, incentives and a term YOU can live with. In my case, I want the flexibility to trade cars more often and want the dealer/manufacturer to assume the depreciation risk. The shorter the term, the higher the cost, but the less likely you'll end up upside down in the long run as you are paying for the larger depreciation hit mostly up front.

I usually buy, but Hyundai offered leasing terms that were too good to pass up. My money factor works out to be around $16 a month so essentially, I'm borrowing the money for free. Try to get free money from BMW.

Agreed with every point. If you want great BMW rates you need to lease a 2008. Im not sure if the program is still in effect, but I know the money factor was very close to the Hyundai factor.

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[ahurst]

My 2008 535i lease has 57% residual, 36 month term, money factor .0012 (2.88% interest) and price was $1,200 below invoice $57,000). Lease payment $718 (tax excluded.)

I am desperately trying to get someone to assume my lease so I can buy a Genesis 4.6 with Tech....

 

[keithl]

I am a bit confuse on the "so called" promotion lease I got from the members in the forum. (First of all, this is not a brands flight... but I want to compare the real world numbers to make it easy to understand.)

BMW offers 535i (52K sticker) lease for 36 months - total money spent 23704 (Which is 589 x36 plus 2500down) So, average monthly is 660.00

Hyundai offers Genesis 3.8 Tech (40K sticker) lease for 27 months - total money spent 17000 (which is around 530-550 a month plus 2700down), so average monthly is 640.0

How come in a real world, the sticker price of the car got 20%+ difference but the monthly only had a marginally difference at 20.0?

Any insight..?

I'm getting a quote of V6 Tech for 27 months with 20K miles a year at $690 a month, NO MONEY DOWN, just first month up front.

 

[njohnson]

What are the $399/month, 24 month, $2,xxx down lease ads I keep seeing for? Seems like everyone here is paying $500-600+ a month for the Genesis.

 

[keithl]

What are the $399/month, 24 month, $2,xxx down lease ads I keep seeing for? Seems like everyone here is paying $500-600+ a month for the Genesis.

My guess is that is 10K miles and it is $2500 down. I am putting ZERO down and buying 20K miles a year. That drives the cost up. Still $690 for a 27 month lease with 20K miles is great!

 

[Mark_888]

What are the $399/month, 24 month, $2,xxx down lease ads I keep seeing for? Seems like everyone here is paying $500-600+ a month for the Genesis.

That was the "starting from" lease payment for the base model ($33,000 including dest. charge). Not sure what mileage that was based on, but probably about 7,500 per year.

I think I made a mistake by not doing the lease since I usually don't drive a lot of miles. I have always purchased before and assumed that was better financially, but if you have the option to purchase at lease-end and the money factor (imputed interest rate) is low, then I am not sure what the disadvantages are.

 

[sandy]

I am desperately trying to get someone to assume my lease so I can buy a Genesis 4.6 with Tech....[/QUOTE]

Try: leasetrader.com

I have no first hand experience with this site but it is designed to solve your problem.

 

[justfine]

it's for the base 3.8 with 12,000 miles with 2599 down. Most people are leasing the 3.8 with the premium plus or tech package,which increases the cost of the car or are leasing the V8 with add'l packages. Also, most are not putting that much money down on the lease and are buying add'l miles up front - all leading to an incresed monthly lease. In my case, I leased a 3.8 with prem plus package, cargo tray, and ipod cable for $ 700 down, which included the 1st month lease payment and bumped the miles up to 17,000 per year. My pymt is $ 545/month for an add'l 26 months.

 

[Mark_888]

My 2008 535i ...invoice $57,000.

$57K? Does that come with a driver?

 

[sandy]

That was the "starting from" lease payment for the base model ($33,000 including dest. charge). Not sure what mileage that was based on, but probably about 7,500 per year.

I think I made a mistake by not doing the lease since I usually don't drive a lot of miles. I have always purchased before and assumed that was better financially, but if you have the option to purchase at lease-end and the money factor (imputed interest rate) is low, then I am not sure what the disadvantages are.

Mark, you're right, the $399 (plus sales tax) was the lease for the base model. It included 12k miles/yr. You got to the $399 by putting down about $2000. Leasing probably would have made sense for you; it's designed for folks that don't drive a lot of miles/year and want a new car every two or three years. If the money factor is favorable, there are no disadvantages.

 

[Mark_888]

Mark, you're right, the $399 (plus sales tax) was the lease for the base model. It included 12k miles/yr. You got to the $399 by putting down about $2000. Leasing probably would have made sense for you; it's designed for folks that don't drive a lot of miles/year and want a new car every two or three years. If the money factor is favorable, there are no disadvantages.

I have usually driven about 8,000 miles anually and kept cars about 6 years, so that is why I didn't even think about the lease. But I always bought Honda and Toyota vehicles in the past so the there was not much risk as they were very reliable. But if the Hyundai lease allows one to purchase the vehicle at lease-end, and it has a very low imputed interest rate, it takes the risk out of the deal just in case I decide to switch after a few years (maybe Hyundai will significantly improve the Genesis suspension or something).

If the advertised lease term had been for 36 - 48 months I probably would have at least looked at a lease. I hate getting screwed with trade-ins and during bad economic times companies tend to be optimistic about the residual value in order to move units.