Would I get the 10 Year/ 100k mile powertrain warranty if I bought my car at lease end?

[waz]

I am contemplating buying out the lease on my '15 Ultimate at the end of February, and I have a couple of questions for those of you who already did so:

1) Would I receive the 10 year/ 100k mile powertrain warranty since that warranty applies only to the original owner and technically Hyundai Motors was the original owner?

2) Has anyone successfully negotiated a purchase price lower than the "Purchase Option at the End of Lease Term" figure on their lease agreement? Mine is $28168, and the car will have a little over 31,000 miles at turn in. Based on my research, I could buy a CPO w/35k miles for $23900.

3) I understand dealers sell most lease returns at auction. Can I find out where and when the auction will be from the dealer and bid on my own car? Or do I need to hire someone with an auction license to bid?

4) I am also considering extending my lease through May. Would there be any advantage to doing so and then negotiating a price with Hyundai?

 

[GarnetTy1473]

1. You are the original owner, so you'd keep the powertrain warranty.

2. I don't think the purchase price is negotiable, but I'm not 100%. You could always have the dealer you are turning it in to keep it, then resell it to you. However, I'm not sure if you'd then be considered a 2nd owner or not. You'd still get the CPO powertrain warranty though, which, on the dealer side of things, is more of a pain since it goes through an aftermarket company.

3. See #2. We always keep lease turn ins, especially Genesis. CPO Genesis never last long on our lot.

4. No clue

 

[TurtleBoy]

I am contemplating buying out the lease on my '15 Ultimate at the end of February, and I have a couple of questions for those of you who already did so:

1) Would I receive the 10 year/ 100k mile powertrain warranty since that warranty applies only to the original owner and technically Hyundai Motors was the original owner?

We were discussing this the other day on the G70 forum and the answer was that you would get the 10/100K if you buy the car at the end of the lease, I assume Hyundai would be the same. There should be a paragraph in your warranty concerning that. The one from Genesis was “Original Owner is defined as the first retail purchaser of the vehicle who took delivery of the vehicle on its date of first use. If the vehicle was first placed in service as a lease vehicle, and the lessee purchases the vehicle at the end of the lease, the 10 year/100,000 mile Powertrain Limited Warranty remains in effect.”.

 

[waz]

Thanx for those replies, guys.

 

[hrdc69]

I'm in the same boat as you, my lease on a 2015 Ultimate was up Nov 2, 2018. I opted to extend the lease as Hyundai will extend the lease for up to 6 months and the monthly payment will remain the same. You are considered the original first owner so the 10 year 100k powertrain warranty will remain with the car.

You said your buyback is $28,168. Hyundai will absolutely not negotiate lowering your buyout, trust me I tried. It was explained to me that they have a very complicated financial structure so even if a car is sold at auction for less than its buyback price Hyundai doesn't lose money due to tax credits, currency exchange and a host of other factors. However the good news is that your buyback price of $28,168 will be lowered by the six months of payments you make if you extend the lease.

Say your monthly payment is $500, and six payments of $500 totals $3,000 and so at the end of the six month lease extension your new buyout will be $28,168 minus $3,000 for a revised buyout of $25,168.

You know the history of your car and if it has been good with few or any problems then in my opinion it would be insane to turn it in and then somehow try to buy it back after the auction. First of all it would be extremely difficult to find out where and when it was being auctioned and if you did then you would have to pay someone with a dealer license to bid on it. They no longer officially allow someone with a dealer license to bid for a non dealer although I suppose some still do but it would be a awful lot of hassle. Far easier just to keep the car you have if its been good as you know its history. Sure you could turn your car in and try to buy another Ultimate for a few thousand less but would it be worth it to go through all that hassle just to save a few thousand. Also you would be getting a car you don't know anything about.

 

[dfyffe]

Excellent points hrdc69.

 

[Mr. Incredible]

you absolutely can negotiate your buy out price. whether or not the dealer excepts it is another story.

google it, there are several sites with good information on how to do it, the general consensus being to start the process 2-3 months before the end of your lease and keep pressuring them, there is no reason to pay more than market value for a used vehicle, and technically your leased vehicle once the lease is up, is a used vehicle, you are now entering into a second financial contract on the vehicle.


I've done it successfully in the past, but it really depends on the dealership and the finance company.. I always went in with my own financing arranged through my credit union, if they agreed to lower the price I would agree to use their financing and settle on a rate higher than the CU, (I did not tell them I had financing already) then pay off the car within the first or second payment with the CU financing if the CU financing was better (it always has been).

I had a 2000 Silverado Z71 lease, buy-out was $19K, I negotiated it down to $14K with 7.99% financing, then used the CU at 2.99% at the first payment, the dealership was willing to lower the price because they thought in the long run they would make more money off the high interest rate.

Did the same with a 2005 BMW, and a 2008 Corvette. In all cases I settled on a really high used car interest rate from the dealer in exchange for a lower buy out price, and then used the CU to buy out the buy out.

I am preparing to do the same with my wife's 2017 Camry Hybrid, our buy out is $17,800 current market for the version we have is $13,900 - $14,500, pretty sure I can get it down to $14K-$15K Already have the CU financing lined up at 1.99% current TFS rates are 6.99%-9.99% on used cars. I'll settle for $15K @ their rate, getting nearly $3K knocked off the car, then use the CU to payoff the TFS loan..

If you go in on the day the car is due back and try all of this you are not likely to succeed, you need to plan it out, make your first low ball offer a month or 2 in advance and keep making offers until they accept or you walk. And don't be afraid to walk if you are prepared to, because at the end of the day no matter which route you go, the dealership isn't losing any money, they may not make as much as they want, but I guaranty they aren't losing anything on any deal they agree to.

 

[dfyffe]

Mr. Incredible , thats great info. wiil try that on my next car purchase, any advice on house purchase, Im planning on using the home equity line of credit on my next house purchase, any better advice ? , pm me. knowledge is power, thanks.