Post purchase price details here (US $ only)

[securityguy]

I'm pretty sure it's a balloon program. We didn't talk about mileage limits, residual, fees/penalties for paying off early, unlike a lease.

Also, I'm assuming I would've signed/received a copy of a lease agreement if it was a lease. Instead I have a retail purchase agreement.

Just spoke with the Sales Manager at Plano. This ends TODAY (according to Genesis) but may be carried into next month:

Balloon Finance (not a lease) - 2.0T is $4250 rebate. 3.3T is a $3000 rebate

Finance APR is 2.0% versus 1.9%/60 months. You can wait 90-days and then pay it off in full if you want without penalty.

Spoke with my local dealer here in FL and he said it may be specific to TX, or a few other states that don't have lease, or typical lease options. Therefore, it appears to be by STATE and not a national opportunity but my dealers looking into it for me.

 

[mrcleeaan]

Just spoke with the Sales Manager at Plano. This ends TODAY (according to Genesis) but may be carried into next month:

Balloon Finance (not a lease) - 2.0T is $4250 rebate. 3.3T is a $3000 rebate

Finance APR is 2.0% versus 1.9%/60 months. You can wait 90-days and then pay it off in full if you want without penalty.

Spoke with my local dealer here in FL and he said it may be specific to TX, or a few other states that don't have lease, or typical lease options. Therefore, it appears to be by STATE and not a national opportunity but my dealers looking into it for me.

My balloon finance has no prepayment penalty fortunately, it says it on the contract and that's one thing I made sure of. Hope you find a good deal!

 

[securityguy]

The "balloon" payment option is only available in a few states and I can get the same rebates but only on a closed ended lease I'll just have to take my $1000 rebate and finance at 1.9% for 60 if the incentives remain intact for August.

 

[mrcleeaan]

The "balloon" payment option is only available in a few states and I can get the same rebates but only on a closed ended lease I'll just have to take my $1000 rebate and finance at 1.9% for 60 if the incentives remain intact for August.

Would it still save you money to buy out of state?

 

[securityguy]

I think I'd have to drive to Plano...and I have a trade so may not be realistic

 

[wesquire]

The fed cut the lending rate a quarter point today, which won't make too much of a difference in auto loan lending rates (maybe $10/month), but it lowers lending rates for dealers and automakers, improving their margins and making successful aggressive negotiation more likely.

 

[securityguy]

New August incentives were just loaded and no changes from last month.

 

[Mcc]

The "balloon" payment option is only available in a few states and I can get the same rebates but only on a closed ended lease

What is the matter with a closed ended lease?

 

[securityguy]

The residual is 51% and the car is too expensive to purchase after 3-years so it appears that you're better off doing a purchase and forgo the additional lease rebate dollars. I have a few dealers working the math for me but they all seem to think doing a lease for the sake of the additional rebate isn't a great idea. I just need to see the math as i am not a lease guy and normally pay cash for cars unless I can get a great finance option to keep cash liquid.

 

[Mcc]

The residual is 51% and the car is too expensive to purchase after 3-years so it appears that you're better off doing a purchase and forgo the additional lease rebate dollars. I have a few dealers working the math for me but they all seem to think doing a lease for the sake of the additional rebate isn't a great idea. I just need to see the math as i am not a lease guy and normally pay cash for cars unless I can get a great finance option to keep cash liquid.

Just lease it and get the lease cash. Pay off the lease offer a month, there is no penalty. Pay it off with cash or just finance it with your credit union, you can probably get the same finance rate as Genesis. So you get the best of both worlds, lease cash and pay cash or finance yourself!

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[securityguy]

Thanks @Mcc ...however, and I may very well be missing something here as I have never leased, but if I lease and pay it off immediately which I could do, don't I still have the 3-year residual at 51% as I am "stuck" for the 36-month term even though it's paid off?

 

[wesquire]

No, your account would have a rolling lease payoff amount. You'll get credit for what you paid against the purchase price and pay whatever amount is left.

 

[Mcc]

No, your account would have a rolling lease payoff amount. You'll get credit for what you paid against the purchase price and pay whatever amount is left.

Precisely!

 

[KusaKusa]

Residual shouldn't matter if you plan on leasing into buying. High residual value means you pay less during the lease but have to pay more for the value of the car at the lease end. Low residual value means your lease is more expensive, but at the end of it you buy the car for cheaper. Basically all the money goes towards the purchase price of the vehicle in the end.

 

[securityguy]

OK guys...maybe this is a Florida thing but this is what my dealer just shared with me.

1. If I buy out the lease, and then wish to purchase the car, I have to pay an additional dealer fee (they run $599-$899 in FL...huge ripoff but cannot control) at purchase
2. When I pay the payoff amount I also pay another set of taxes on the car
3. If I payoff the lease early, God forbid I get into an accident, I lose ALL of my payments as the bank still owns the car since I have not officially purchased the car

With my current trade allowance on a 3.3T, it costs me over $400 more to lease and buy then if I just outright purchase and that is with the additional $3K in rebate money. Out of pocket coming in at around $11K on the purchase.

If someone is willing to have a phone conversation versus all of this typing, I'd love to chat with someone who's an expert on leasing so please PM me and we can connect via cell. I know every state has different laws and maybe FL just isn't lease friendly like others may be. Hoping to learn more before I take the plunge. Thank to all that have chimed in and your willingness to help!

 

[TurtleBoy]

As far as I know, your dealer is mistaken/confused on all three points.

1. You pay the dealer fee only on the original lease. When you purchase the car through a lease buyout that is just between you and the finance company, the dealer is not involved. I'm not 100% positive abut lease end buyouts but fairly sure no dealer fee would be involved then either.

2. In Florida you do not pay taxes up front on leases, you pay sales tax each month based on the monthly payment. When you buy out the lease then you just pay sales tax on the buyout amount.

3. When you buy out a lease then you own the vehicle. If you used a loan for the buyout then it is no different than normal financing.

 

[TurtleBoy]

With my current trade allowance on a 3.3T, it costs me over $400 more to lease and buy then if I just outright purchase and that is with the additional $3K in rebate money. Out of pocket coming in at around $11K on the purchase.

Your dealer is playing games with you. Given current incentives it will be thousands less expensive to lease than purchase outright (unless that balloon financing is available). Your trade should be worth the same whether you purchase or lease.

 

[tarhoosier]

There are board members who have leased and then purchased some (short) time after and came out ahead the lease cash amount minus the lease acquisition fee (750$ for me) and what lease exit/disposition cost which is from zero to a few hundred dollars. Tax is calculated and proportional though different in each location, obviously. Rather than describe your case I will offer these other cases. They are mentioned in the thread Lease Comparisons which I read prior to my lease. I thought I was a buyer but went with lease for the savings.

 

[securityguy]

Thanks for the input but I would enjoy a conversation via phone if someone is willing to help that has done what I am being led to do.

 

[EdP]

As far as I know, your dealer is mistaken/confused on all three points.

1. You pay the dealer fee only on the original lease. When you purchase the car through a lease buyout that is just between you and the finance company, the dealer is not involved. I'm not 100% positive abut lease end buyouts but fairly sure no dealer fee would be involved then either.

That is a definite maybe. Is the dealer going to perform any services in the sale? Sure you send the check to the leasing company and they send you a title. If the dealer does some services such as registration, temporary tags, he would be entitled to some form of compensation. Seems most of that would be optional as you could do it yourself.