Possible lease extension....

[Beardie]

Has anyone had any experience in trying to extend a 36 month lease through HMC? I did this with a Volvo a few years ago and it enabled me to get to the next model year. It was a no cost extension for 3 or 6 months. I have a 2015 RWD Tech and would like a few more months at lease end.

 

[opticsguy]

I want to do the same thing, but so far have only been offered to lease a new G80

 

[thurstonp]

Has anyone had any experience in trying to extend a 36 month lease through HMC? I did this with a Volvo a few years ago and it enabled me to get to the next model year. It was a no cost extension for 3 or 6 months. I have a 2015 RWD Tech and would like a few more months at lease end.

Yes you can. I called HMF to go over lease-end options, and they said I could extend the lease for up to six months, and if I purchase it at lease-end the payments are deducted from the residual purchase price and disposition fee waived. Heck of a deal if you can get it; the lady I spoke with said not everyone is eligible, but don't know what their criteria is.

 

[EdP]

Heck of a deal if you can get it; the lady I spoke with said not everyone is eligible, but don't know what their criteria is.

Most likely a good payment history.

 

[Beardie]

Yes you can. I called HMF to go over lease-end options, and they said I could extend the lease for up to six months, and if I purchase it at lease-end the payments are deducted from the residual purchase price and disposition fee waived. Heck of a deal if you can get it; the lady I spoke with said not everyone is eligible, but don't know what their criteria is.

Thanks for the info. Good to know for when the time comes.

 

[Richard Wendt]

Yes you can. I called HMF to go over lease-end options, and they said I could extend the lease for up to six months, and if I purchase it at lease-end the payments are deducted from the residual purchase price and disposition fee waived. Heck of a deal if you can get it; the lady I spoke with said not everyone is eligible, but don't know what their criteria is.

I'm not understanding this. If you buy it there should be no disposition fee or am I mistaken?

So far as I know, one can buy the car anytime they wish to. I have $0 payments until October, 2020 and will probably bet a G80 Sport then although I have no complaints about my current G80.

One can go onto HMFUSA and get the particulars. The residual amount should, I think, be clearly stated. I still get a statement showing $0 owed each month. Go figure.

 

[Mcc]

I'm not understanding this. If you buy it there should be no disposition fee or am I mistaken?

So far as I know, one can buy the car anytime they wish to. I have $0 payments until October, 2020 and will probably bet a G80 Sport then although I have no complaints about my current G80.

One can go onto HMFUSA and get the particulars. The residual amount should, I think, be clearly stated. I still get a statement showing $0 owed each month. Go figure.

I don’t understand how you can have $0 due until 2020 on a lease. There has to be some monthly payment unless this is not a lease but a finance purchase with a balloon payment.

 

[Richard Wendt]

I don’t understand how you can have $0 due until 2020 on a lease. There has to be some monthly payment unless this is not a lease but a finance purchase with a balloon payment.

Not a penny. I made a single payment lease of $5,900 and drove off. I don't know if that is possible everywhere but it is where I live.

On my new GT Sport I pay $313 each month for 36 months at which time I have the option of buying it. The dealer is trying to get me into the first Kona that arrives at the dealership. I have to see it first although if it is anything like the Niro it will be a runaway success.

Actually, on the lease, if it is handled properly it can be taylored to individual needs and means. For example, if one doesn't drive very much, one might opt for a 10,000 mile per year over a 12,000 mile limit. That would lower the payments. Of course, it helps to have a good credit rating. Not available to everyone.

I have done the finance purchase with a balloon payment as well. This is a lease. To be honest, I don't see that much difference. Who keeps their cars that long anyway? One can trade even in the lease period. I have equity in the lease and would be able to apply that equity to a new purchase or lease.

 

[Mcc]

Someone is going to have to explain this deal to me, please.
How can you have equity in a lease?
How can you trade it in during the lease period without either paying off the lease or having the dealer take it out of you next purchase ( although usually they won’t tell you directly that they are doing that)?
If you are not making any monthly payments and almost nothing down then the full price plus all the interest must be due at lease end, if you keep it. If you don’t, how much do you owe?
What am I missing here?

 

[EdP]

Where I worked some years ago we had leases through Avis. You could bail out at any time. You either paid the difference between trade value and amortization schedule price, if any, or could buy the car outright. Of the four cars on lease, the price was so good after a couple of years we all bought them for personal use and then leased a new company car. I don't profess to know all the deals but I do know you can get out of a lease at any time if you are trading up. Dealers want the repeat business and will do all sort of things with the numbers.

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[Mcc]

Where I worked some years ago we had leases through Avis. You could bail out at any time. You either paid the difference between trade value and amortization schedule price, if any, or could buy the car outright. Of the four cars on lease, the price was so good after a couple of years we all bought them for personal use and then leased a new company car. I don't profess to know all the deals but I do know you can get out of a lease at any time if you are trading up. Dealers want the repeat business and will do all sort of things with the numbers.

Dealers want repeat business so they can take your leased car that they have made NO money on and lease you another car that you are not going to put any equity in? Where is the logic in that? I still don’t get it. Please help me understand.

One question for Richard-Wendt: Did you have a trade in that as fully or partially paid off as part of that deal?

 

[EdP]

Dealers want repeat business so they can take your leased car that they have made NO money on and lease you another car that you are not going to put any equity in? Where is the logic in that? I still don’t get it. Please help me understand.

I don't know how they work the numbers. I know they have to make money and dealers get paid for leasing, prep, selling trades, etc. We look at it as buying, selling, leasing cars. They just look at the dollars. My local Buick dealer told me he can make money just breaking even on new car sales because it allows him to sell profitable used cars and do service.

 

[Richard Wendt]

Someone is going to have to explain this deal to me, please.
How can you have equity in a lease?
How can you trade it in during the lease period without either paying off the lease or having the dealer take it out of you next purchase ( although usually they won’t tell you directly that they are doing that)?
If you are not making any monthly payments and almost nothing down then the full price plus all the interest must be due at lease end, if you keep it. If you don’t, how much do you owe?
What am I missing here?

The residual is something over $24K. The car is worth about $36K.

I owe $0. At the end of the lease I can merely hand over the keys and walk away if I choose to do so. I would have to pay $400 for the disposition fee. If I buy or lease another it is waived. I can also trade or sell it. I have a pay-off in the account I can use any time I wish.

- - - Updated - - -

Yes. I traded in a Tucson.

 

[Mcc]

I don't know how they work the numbers. I know they have to make money and dealers get paid for leasing, prep, selling trades, etc. We look at it as buying, selling, leasing cars. They just look at the dollars. My local Buick dealer told me he can make money just breaking even on new car sales because it allows him to sell profitable used cars and do service.

When I hear “I don’t know how the numbers work” it makes me worry that the dealer is not being transparent about the deal and there is the possibility that the buyer is not getting the deal they think they are. This is not a case of the dealer breaking even on the lease, this is where Richard_Wendt ONLY giving the dealer $5,000, uses the car for a few months and can turn it back in and get another car and do the same thing. The dealer would get a depreciated car and no money. No ne can stay in business doing this. Doesn’t seem to make sense to me.
Just trying to lookout for buyers.

 

[EdP]

When I hear “I don’t know how the numbers work” it makes me worry that the dealer is not being transparent about the deal and there is the possibility that the buyer is not getting the deal they think they are. This is not a case of the dealer breaking even on the lease, this is where Richard_Wendt ONLY giving the dealer $5,000, uses the car for a few months and can turn it back in and get another car and do the same thing. The dealer would get a depreciated car and no money. No ne can stay in business doing this. Doesn’t seem to make sense to me.
Just trying to lookout for buyers.

He had a trade. You often have to wait for "the rest of the story" Add that to the $5000.

 

[Mcc]

He had a trade. You often have to wait for "the rest of the story" Add that to the $5000.

Thank so much for the additional information. I was beginning to question my sanity. To me “not a penny” means not a penny. I guess I missed the trade in somewhere in there. Also I don’t see any equity here, do you? Those trade in dollars went to prepay the lease payments. Nothing is owned and there is no asset.

 

[Richard Wendt]

He had a trade. You often have to wait for "the rest of the story" Add that to the $5000.

There is no rest of the story. My wife wrote out a check for $5,900 to the end of the lease. Otherwise we would have had regular lease payments originally made. As I recall they were in the vicinity of $200 per month. I checked around and the Mercedes dealer in Little Rock also offered to make single payment leases.

To be frank, I had never heard of them. But when everyone including the general manager at the dealership lease their cars they know a little bit about this subject and since I have purchased nine new cars from them in six years, they treat me well. I always insist on "real" numbers so everything works out. I paid about $29 to register the car and the sales taxes are already figured in as they are on the Elantra GT. Everything else works just like a regular purchase including insurance. A plus for leasing, at least through Genesis, is that gap insurance is included in the leasing contract. A person could get burned in a conventional loan unless gap insurance is taken into consideration. One large insurance company includes that in their auto loans. Not something to be overlooked.

For example, you buy a car for $30,000 and three months down the road and its value falls to $25,000 and you paid $2,000 down and have good credit. You will be on the hook for $3,000 unless you have the gap insurance.

 

[EdP]

There is no rest of the story. My wife wrote out a check for $5,900 to the end of the lease. Otherwise we would have had regular lease payments originally made. As I recall they were in the vicinity of $200 per month. I checked around and the Mercedes dealer in Little Rock also offered to make single payment leases.

But what happened to the Tuscon you said you traded? I've herd of single payment leases but was it $5900 or was it $5900+the Tuscon value?

 

[Richard Wendt]

But what happened to the Tuscon you said you traded? I've herd of single payment leases but was it $5900 or was it $5900+the Tuscon value?

After the trade-in, the amount to make the single payment lease was determined. The check was written.

You could say that it was the $5,900 plus the Tucson equity. In any event we make no payments. We have approximately $11,000 in equity should we wish to trade or sell it today. All that needs to be done is to send a check to Genesis for the pay-off amount and we get the title. But then we would have to pay the sales tax to register it in our name. But that is unnecessary since we probably won't keep it more than three years.

The residual value is $24,131.80. The "Buy-out" quote is $24,114.15 from the actual Genesis Finance site. It provides instructions on where to send the check. The MRSP was $47,155.00. My math shows that to have a residual percentage of 51.174% at the end of three years. The current NADA for my car is $$35,750. Therefore there appears to be equity of $11,619.

At the end of the lease period, I will hand the dealer the keys and walk away. There is a disposition fee of $400 to be paid. However, if I choose to lease another vehicle, the disposition fee will be waved.

 

[EdP]

After the trade-in, the amount to make the single payment lease was determined. The check was written.

You could say that it was the $5,900 plus the Tucson equity. In any event we make no payments.

Thanks for the clarification. It sounded like you just paid $5900 and get to drive for 3 years. Genesis would move lot of cars at $163 a month. Many dealers advertise prices for leases that seem low when you look at the big number, but to get that $99/month payment you need a bunch of cash up front in the fine print. I just saw a Jaguar ad for a cheap lease but it was for 7500 miles a year. In the past I drove too many miles to lease but that has changed. I did lease a '91 Regal for cheap and then bought it. My wife later used it and we had it for 16 years.