Super Strong Genesis Lease!

[EdVoylesHyundai]

Yes! Hyundai is going to support the Genesis with a perfect launch lease!

Pack 1 ($33k MSRP):
$2199 up front
$399/mo for 24 mos
12,000mi/yr

Pack 4 (tech pack $40k MSRP):
$2199 up front
$499/mo for 24 mos
12,000mi/yr

You can't beat that with a STICK! Worried about new model reliability? Lease it. Worried about depreciation? Lease it. Worried about out of warranty repair costs? Lease it. Want a new car every 2-3 years? LEASE IT! Price too high? Lease it!!! Drive 20,000 miles a year? Lease it and buy the miles up front. Its still way cheaper! Heck, buy the miles at the end. You STILL come out ahead.

Financing $33k for 60mos at 0% (if it were available, which it most certainly is not) is $550/mo. $40k for 60mos at 0% is $667/mo. This is a no-brainer lease.

BAM! Now what!? WOOOOOOOOOOOOOOOO!

 

[Sal Collaziano]

Very interesting, Frank. Thanks for posting this up. This will surely excite at least a few of the nay sayers.

 

[pat2717]

There is another Dealer who is quite informative on the Edmunds Forum site. His Id is jeffreid. He put up a post on this page:

http://townhall-talk.edmunds.com/WebX?14@@.f12c019/1840

It looks like there are some special financing rates that come pretty close to zero, at least in his region.

 

[EdVoylesHyundai]

There is another Dealer who is quite informative on the Edmunds Forum site. His Id is jeffreid. He put up a post on this page:

http://townhall-talk.edmunds.com/WebX?14@@.f12c019/1840

It looks like there are some special financing rates that come pretty close to zero, at least in his region.

Thanks for the heads-up. I was so excited about the lease, I completely forgot to look for special APR's. I'll check on Friday and post if there are any. Special rates are often regional offers, so it would make sense that the south-central region would have special rates where the south-east may not.

 

[Michael_S]

Financing $33k for 60mos at 0% (if it were available, which it most certainly is not) is $550/mo. $40k for 60mos at 0% is $667/mo. This is a no-brainer lease.

The lease rates are fantastic, no question.

But of course, if you spend $550/month or $667/month, at the end of 5 years you own the car. That's always nice.

 

[gipp]

Ownership vs. leasing is always interesting. Let's look at this one.
Buy at $40,000 / 1825 days(5years) = $21.91 per day
Lease at $14,175 / 720 days(2 years) = $ 19.68 per day

A recent report by Neil Terry in International Advances in Economic Research placed cars in tiers in terms of depreciation. It compared 15 car brands for reliability, safety, initial price, and name brand, from 2000 to 2004. Tier one was the best, with an average annual depreciation rate of 13.4 to 14.1 percent – belonging to Honda and Lexus.
Tier two was Volkswagen and Toyota, with average annual rates of 16.5 to 16.8 percent. Tier three automobiles were Nissan, Mercedes, BMW, Hyundai, and Mercury, at 18.9 to 21.2 percent.

Let's go with 20% to be fair for the Genesis. Year 1 =$ 32,000 Year 2= $25,600 Year 3 =$20,480 Year 4 =$16,384 and Year 5 =$13,107

Considering Ed's comments on new model depreciation and resale value it looks like starting with a lease on this one might not be a bad idea. Obviously if you think the V8 will become collectible, you intend to use all 10 years of the warranty, etc. all that goes out the window. If you love the Genesis after 2 years buy a new one.
Other thoughts or calculations on lease vs. buy on the Genesis?

 

[gipp]

One obvious point that I forgot to include in the last post is that Hyundai is attempting to set a 20% depreciation rate for Genesis V8 with this lease package. At 20% Year 1=$32,000 and Year 2 = $25,600.
$40000-14,175 lease =$25,825. Of course the market will dictate real depreciation.

 

[EdVoylesHyundai]

Ownership vs. leasing is always interesting. Let's look at this one.
Buy at $40,000 / 1825 days(5years) = $21.91 per day
Lease at $14,175 / 720 days(2 years) = $ 19.68 per day

Other thoughts or calculations on lease vs. buy on the Genesis?

Don't forget that you are calculating the purchase cost based on 0% interest. A more commonly available and great conventional purchase interest rate would be something like 5.9%. The lease payment factors in the interest rate already. Using 5.9% for the purchase over 60 mos you get:

Finance $40,000 (putting same $2199 down as lease to cover taxes, etc) @ 5.9% for 60 mos = $771.45/mo or total payments of $46287 (plus $2199 down) = $48486 total OOP / 1825 days = $26.57 per day to purchase. And don't forget that if you purchase it, you own it whether you want to or not. YOU take the depreciation hit regardless of whether you want to keep the car or not. On a 60 month loan, it usually takes about 45 months until you have no more negative equity in the car you "own". And if you trade sooner than that, you just roll the amount into the next loan and it just snowballs like that until, next thing you know, you are $10,000 buried in a 5 year old Grand Prix with no options. With the lease, you always have 4 options at the end of the term:

1. Return the car, drop the keys and walk away.
2. Return the car, lease or purchase another with -0- negative equity.
3. If the car is worth more than the residual you can trade it and have POSITIVE equity.
4. If the car is worth more than the residual you can sell it, stroke a check to pay off the bank of the residual and take your $ to buy/lease another car.

 

[Genesis X]

Any three year lease specials?

I don't like the down. Can you roll that into the lease for a bit higher payment?

What's the MF, residual?

 

[gopack504]

Hey EdVoyles

Is there any chance of Hyundai bringing out a diesel version of the Genesis?

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[Sal Collaziano]

Hey EdVoyles

Is there any chance of Hyundai bringing out a diesel version of the Genesis?

I remember reading about this somewhere... I think Hyundai is waiting to see how it does before considering anything in regards to diesel and/or hybrid...

 

[Viking]

EVH,

How much will these lease rates vary by area of the country? There are no Genesis Pack 4 V-6s in MN yet - just Premium Plus packages. You had posted a $2,199 down / $499 monthly rate for the loaded V-6 but when I go to Hyundai USA, it is quoting $1,800 down, $500 HMFC origination support PLUS the $2,199 due at lease signing.

Also, will these lease rates really be over by June 30th? (according to the Hyundai website). I can't imagine that -- given that the pack four vehicles are not even on the lots yet..

 

[Coug]

EdVoyles Hyundai, it's getting a little frustrating out here waiting for the Genesis to show up! I need to lease a vehicle out here in Virginia and I'm trying to hold off as long as I can to take a look at the Genesis, but so far the dealers here have no vehicles and are only expecting one or two in the next couple of weeks -- Pack 2 and 3 only. Why are only a couple of vehicles at a time arriving? Do you know why no Pack 4's are coming out? What are you hearing about when the Pack 4's will be available? It amazes me that on the Hyundai USA website there is still not a brochure on the Genesis, no description of the option packages, no color selections, etc. The Genesis website has more info about the features, but little else. I sure don't understand the roll-out approach on this vehicle. Thanks.

 

[carcapco]

My thanks to all who have provided valuable insight into the Genesis and I hope I can return the favor with this post and others as my quest for a Genesis continues and hopefully ends this week.

I'm coming off a 24 month lease on an Infiniti M35X and while I love driving the car, I'm very excited about the Genesis. I almost pulled the trigger on a new Lexus GS a month ago when I first heard of the Genesis I'm glad I held off if only half the reviews I have read are true. Between this site and Edmunds - the reviews, insights and comparisons have me 99% committing to a Genesis sight unseen (Nav Package option).

My concern was that I was seeing a "no-brainer" lease program that ran through June but of course there was the obvious problem - virtually nobody has the car yet and Monday is the end of June. So after talking with over 20 dealerships within a 200 mile radius to learn more on the delivery date and lease program - I soon learned that I was more informed (due to this site and others) on the Genesis than were most Hyundai dealerships. For example, dealers were telling me that it would be fall before the cars were available, that there were no cars with the Nav package coming out this year, there was no lease program. And then I finally found a dealer who knew what he was talking about - he has over 15 in transit.

So let's skip forward a little. He advised me that the lease program was going to be extended through July and that this is the week that most dealerships (if they qualified) would receive their Genesis cars. That the objective was to have the cars arrive at dealerships around the country around the same time. And yes, nav is available.

So for me, I now have the luxury of waiting for the arrival of different colors to pick one that I like along with taking advantage of a 24 month lease instead of making a hurried decision. One last thought on the 24 month lease. While I have had the opportunity to drive Lexus and Infiniti for my last 4 vehicles - I'm not in the least concerned with driving a Hyundai. Koreans make exceptional well built products - Americans have yet to learn how much Koreans are driven by quality and I'm willing to give it a try but a 24 month lease protects us from what happens if Gas Prices go to $x per gallon in 2 years. While unlikely, what if gas went to $12 per gallon - would that change the car you or I drive - probably.

Thanks to all.

 

[Sal Collaziano]

Welcome carcapco.. Thank you for your input and the information you've relayed to us!

In regards to what Coug said - I agree - this roll-out is very odd. It should have simulated the Lexus LS400 rollout in 1989. I don't know how this strategy is supposed to work FOR Hyundai instead of against them...

EdVoyles Hyundai, it's getting a little frustrating out here waiting for the Genesis to show up! I need to lease a vehicle out here in Virginia and I'm trying to hold off as long as I can to take a look at the Genesis, but so far the dealers here have no vehicles and are only expecting one or two in the next couple of weeks -- Pack 2 and 3 only. Why are only a couple of vehicles at a time arriving? Do you know why no Pack 4's are coming out? What are you hearing about when the Pack 4's will be available? It amazes me that on the Hyundai USA website there is still not a brochure on the Genesis, no description of the option packages, no color selections, etc. The Genesis website has more info about the features, but little else. I sure don't understand the roll-out approach on this vehicle. Thanks.

 

[Coug]

So let's skip forward a little. He advised me that the lease program was going to be extended through July and that this is the week that most dealerships (if they qualified) would receive their Genesis cars. That the objective was to have the cars arrive at dealerships around the country around the same time. And yes, nav is available.

Carcapco, thanks for the excellent information and all of your research. So far I have not found a dealer in my area receiving more than two cars, and none with the Technology Package ("pack 4"). I saw a post on another forum indicating that some have heard there are problems with the Tech package, and they will be delayed a month. I hope that isn't the case.

I've never owned a "premium sedan" before, but will be leasing my first this month. I have an incredible deal on an M35x lease if I decide to take it. It sounds like you really liked yours. In my test drives, I found the ride to be a little stiff, and the engine noise a little much, but I guess that is just what people prefer who like the sportier ride. The reason I'm attracted to the Genesis is what I've heard about the softer ride and the very quiet cabin. What did you like about the M35x?

 

[carcapco]

Like yourself, I got a silly lease price on the M35X (it was 24 months). It equated to getting the car at invoice and making principal only payments. The only reason dealership did the deal was I had an excellent lease from another city - gave my local dealership a chance to beat it - they declined - I ordered from the other city and local dealership came back the following day went $1000 below my current deal.

I do love the car. It is responsive, comfortable, and most of all fun to drive. Only downside is that it is not great on gas. I'm around 22 Highway and 15-16 City and seems to be 1-2 miles lower during winter. The Nav, stereo, bluetooth, climate seats, and responsive & agile handling make for a terrific ride. So why am I considering the Genesis? Call it a short attention span, boredom or also that I just want to drive something different than most people and cannot afford an Austin Martin or justify the Jaguar XF. My prior cars were all Lexus and had ordered another when I first drove the M35X and immediately cancelled it and went with the Infiniti - it was that much of a departure. I'm hoping for a similar feeling with the Genesis.

One last note that I'm not fond of on the Infiniti - the rims. If you ever parallel park you will surely scratch the rims as they sit slightly out from the tire. Infiniti charges you $140+ for each one at the end of the lease - that's $140 x 4 for me and I almost never parallel park. Infiniti does waive $500 of excess wear & tear if you lease another but I'm most hopeful that I will like the Genesis more. More Room, More Power, Better Warranty, Better MPG, Better Stereo, Unique Look (M35's are more common now) and cheaper?

Thanks and best of luck.

David

 

[EdVoylesHyundai]

Any three year lease specials?

I don't like the down. Can you roll that into the lease for a bit higher payment?

What's the MF, residual?

Yes, yes and V6 residual is factored at 66%, I think.

 

[EdVoylesHyundai]

EVH,

How much will these lease rates vary by area of the country? There are no Genesis Pack 4 V-6s in MN yet - just Premium Plus packages. You had posted a $2,199 down / $499 monthly rate for the loaded V-6 but when I go to Hyundai USA, it is quoting $1,800 down, $500 HMFC origination support PLUS the $2,199 due at lease signing.

Also, will these lease rates really be over by June 30th? (according to the Hyundai website). I can't imagine that -- given that the pack four vehicles are not even on the lots yet..

I'll have to look at the site and decipher the money thing. When I posted the lease details up, they were not on the website yet.

Hyundai runs almost all of their promotions one month at a time, just like everyone else. I cannot guarantee that they will keep the lease rates, but it wouldn't make sense for them to pull them after less than a week. I think they will keep them through July.

 

[Viking]

EVH,

Anything you can find out about specific lease rates would be much appreciated!!!! The dealers in my area of MN just down seem to be up-to-speed on the lease costs. If you were in MN, I would be leasing my new Genesis from EVH.

Although I waffled on the Genesis after seeing the new 2009 Maxima, I am firmly back in the Genesis camp and am about 90% sure that I want to lease. I just want to know exactly what it will cost me for a Pack 4 V-6 as far as how much down and how much per month - so I can make an informed decision and pull the trigger.

Maybe they will offer a better lease here in MN -- to entice the stubborn Scandinavian heritage folks to overcome the concern about a RWD in snow & ice!!