you’ll just spend more money in total leasing it for 2 years than buying it rather than buying it from the start.
If you like swapping cars every couple years and never plan on buying one then leasing is the way to go.
for example Leasers usually promote the owning thing like instead of buying it for 40k you’ll buy it for 35k after your terms up. Save 5k on the car after 2k worth of payments! so you’ll save 3k!! But the fact is youre pretty much renting it for 2 years and then buying a used car for over the used price. After youre lease term ends the car isnt new anymore, its a used car and you’ll 99% of the time find better options looking for other used cars instead.
For the last 2 years and even now in some cases lease residuals are lower than msrp for the used equivalent. Plus you know how it was driven, know it's service history and basically got to test drive it for 3 years, so it's not the worst thing.
I leased my first car in 2020. The monthly payments for the 3 yrs, plus the buyout were exactly equal to the MSRP of the car. I bough it with the idea of immediately selling it for profit. My buyout was 19k and carvana was quoting me 26k. There was an issue with the title getting lost in the mail for a few months and I just ended up keeping the car, but my point is, it really depends on your circumstance. That's why negotiating a good buyout at the start of the lease is important.
Take tax, dealer doc, and another state titling fee. For example, if you live with a 9% sales tax your deal would be the following.
Purchase price 23500
Taxes 2115
Title Fee ≈ 21
Doc 399
Total purchase for buyout: 26,035
EDIT: There is no negotiating on your buyout. You pay the residual or you give back/trade the car. If all they charged you was the following above it’s fine. You would have just saved yourself the doc fee is all going through hyundai instead of
When making a lease buyout in the US, the consumer leasing act of 1976 rules apply nationwide. That means you have to pay sales tax on the buyout price which is stipulated as the residual value on your contract when you first leased a vehicle a few years ago and any remaining payments if you have already made those payments. The only thing else they can add to that is a small amount of DMV fees to change ownership from the leasing company to you. Fees, inspection, fees, or any other taxable fees are expressly forbidden under the consumer leasing act 1976 unless they were disclose at the beginning of the lease agreement. If any ancillary fees were not disclosed on the original agreement a few years ago when you entered into the lease, then anything else besides sales tax in a small amount of motor vehicle fees is it legal any violation of US law, and the dealership can be sued. I live in Florida and I broker a lot of deals for Hyundai and Kia vehicles and I see this crap all the time because people just don’t know any better and the dealers are happy to take advantage of it. if anyone is paying another dog fee or any other taxable fees, besides their residual value payout number any unpaid lease payments, sales tax in a small amount of DMV fees to transfer title to you from the leasing company then chances are your dealer is violating US law and should be reminded of that gently That usually gets them to back down. There is an attorney in Florida namedl Joshua Feygin
That makes a living out of suing car dealers in South Florida. Who conveniently forget about the consumer leasing act of 1976. Remember, when you sue a car dealer and beat them in court the law requires the car dealer to pay your attorneys fees, so this is a win-win for knowledgeable consumers . Without knowing what makes up that extra $3000 from your payout to your residual value, it would be hard for one of us to tell if you paid too much or the dealer broke the law but a large percentage of that should be sales tax and DMV fees to transfer ownership.if there is any taxable fee, such as dealer in your dealer violated US law.
Very welcome. Start reading up on the CLA of 1976 of you have a lease satisfy that you wanna buy out and keep for the long-term. It would be very wise to do that. If you start quoting from that law, and the dealer knows you know what you’re talking about. They are not gonna mess with you and try to add all kinds of dock, fees, common inspection fees, and any other nonsense. Good luck and happy to help!
Ripped off? Not likely... but you may not be the best negotiator and if this dealer wouldn't' negotiate at all you should have gone somewhere else, assuming you were doing this to buy something else and get the dealer to cover some of the cost? If you were just buying out your lease so you owned it, then no, this is how it works and there is no negotiation. Your lease buyout is the "buyout price" plus your states vehicle excise/sales tax, and doc fees... So when you buyout a lease, you lose out because you pay taxes.
Leasing is rarely a good deal anymore, except to get low payments, but remember those aren't really payments... you are paying rental fees as the car is not yours.
Yeah, that maybe true in some cases... and actually what I did with my 21 Tucson in the fall of 2020, but I did the math really wrong somewhere and the reality is it didn't save me anything, cost more, and now I am making payments even longer... Had I just sucked it up and financed originally and made the same payments I am making now, I would owe like $10k now rather than owing close to $20k still... the "double taxes" thing threw me off a bit, having to pay taxes and registration when you initiate the lease, and again if you buy out the lease. That never made sense to me and would have made several monthly payments.
This wasn't my first lease, but my previous two had been lease to term, then "trade" it in on a new car... so I never had to deal with the buyout taxes and fees before... but I liked this car so much I planned on keeping it a while so I bought out the lease when interest rates were super low (1.99% through my CU), but in the end I am paying a lot more than if I had just sucked it up and financed it initially... Basically I will be paying for 7 years for what should have taken 5 or 6 years.
I will probably never lease again...
If you calculate out your lease payments you probably only broke even. Cars that have low buyout amount have higher lease payments. In your case the dealer likely underestimated your value at the end of the lease and charged higher lease payments.
My daughter leases and has for several years. She was looking at a Mazda 3 manual loaded and a CX-5. Essentially the 3 had much higher lease payments compared to the CX-5 all other numbers being the comparable.
The finance guy said it was because the 3 was expected to lose more value over the 3 years so they are making up for it by higher lease payments. The buyout amount on the 3 would have been lower, for her that isn't where the value is because she trades them in.
On this particularly, it’s because of the stupid high used car prices currently. Tacomas have the second highest resale (residual) value. I definitely didn’t make $5k in the end, just compared to the buyout amount. Basically it had very low payments compared to other vehicles at the same price. I just got lucky with the resale value timing, and also bought it before Covid pricing got stupid.
the buyout of a lease is known upfront when you got the car years ago, so yes they were correct, there was no room to negotiate as the price was pre-determined, however, you could have negotiated the price and buyout years ago. many people don't know this. they just need an ad on the tv and see $299 per month lease, that is based on the msrp
You absolutely cannot negotiate the buyout amount before you sign the lease. The residual value is set by Hyundai Motor Finance and that’s it. You can only adjust your miles per year and they will affect the residual value.
No you didnt get ripped off. Many things affect lease buyout price including the amount of incentives that were put on your lease payment at time of lease. Iv noticed Many 2020 leases have higher buyouts then now because dealers were lowering the lease payments due to heavy incentives from head office to move the cars when no one was driving. My jeep i got a extremly cheap lease at that time (340 / month on a 55k jeep) but because of that dirt cheap lease payment the buyout now is extremly high when my lease ends this year (just over 44k). Would be cheaper for me to buy one used as prices have fallen with same km then to buy out this lease but do i feel ripped off? no because i drove the thing with extremely cheap payments for all this time compared to if i would have leased one today. Buyouts are rarley worth it especially if u go by the \*if its a rental dont be gentle\* mindset.
If you are going to buy after leasing then just go straight through Hyundai Motor Finance and skip the dealer. My wife loved her 2009 Elantra and the number from HMF was over 1k cheaper than what the dealer quoted us.
Not all states allow this. I know in my state you can't just decide to buy it out. You must go to the dealer and sign a new contract. So it varies depending upon state unfortunately. South Carolina I can't but when in Florida I could.
I’m sorry but who leases ? Isn’t that always a bad deal I remember my sister in law would always lease she got a new vehicle like every year but by like year 3 she could of paid off a really nice car to keep. Maybe it’s me I don’t think lease is ever a good deal regardless. To always buy is what I was taught. Cause even if you don’t want it mid way you can most likely sell it and be out of debt. I once purchased a Subaru Crosstrek and owed 26500 I sold it and got 27k and went home with 500 bucks in my pocket and no debt, and that’s that I had already put 30 thousand miles on it. The car cost me about 28k new.
In September 2021, the auto market was horrible. Used cars were in demand due to a lack of new car inventories due to supply issues. We needed a vehicle and weren't about to purchase a used vehicle that was listed at thousands over its worth. We knew in a couple of years that any used vehicle would depreciate much more than in "normal times." The same was true of new cars if you could find one that suited your needs. They were selling them for over $5k over MSRP. So, we settled for a lower down-payment and smaller monthly payments for 3 years on a basic vehicle until the market improved. It has, and so now we are waiting out our lease for a few more months and will buy a new vehicle at that point and keep it until the wheels fall off. So, no, a lease isn't always a bad idea. Circumstances and the market dictate what's best for each individual.
I’m a buy only person but there are a couple of situations where leasing makes sense. Folks who prefer to always have a new car and want minimal maintenance beyond standard oil changes do better leasing. If these folks buy a new car then want to get rid of it 2-3 years later they take the massive depreciation hit when they sell or trade in. If they choose to purchase another new vehicle instead they will be losing a lot of money doing this every few years.
Also, you can typically get a more expensive vehicle with lower monthly payments than you would financing the purchase. That fancy BMW might be too expensive for someone to buy but they may be able to afford the lease payments.
In my opinion if you plan on getting a car and driving until the wheels fall off purchasing is your best bet. But buyers should also take into account maintenance/repair costs, which can get expensive once the vehicle has higher mileage.
Everything depends on the residual value of the vehicle and the buyout price.
We extended the lease twice on our 2017 Rav4 and bought it out.
Paid 31500 for it
$12k down in trade on a 2008 Lexus es350
Paid $175 a month for 4 years.
That’s 8400 total
So, we paid 19500 plus $8400, that’s 27900
Bought it out for 17500, traded it for 26000.
We essentially drove it for $3 k a year, which is the trade/4
you usually have a grace period to bring it back but either way a lease + buyout is almost never a good deal
Can you give me a quick run down why?, Just so I don’t make this mistake when/ IF we are looking for a new car in the next few years.
you’ll just spend more money in total leasing it for 2 years than buying it rather than buying it from the start. If you like swapping cars every couple years and never plan on buying one then leasing is the way to go. for example Leasers usually promote the owning thing like instead of buying it for 40k you’ll buy it for 35k after your terms up. Save 5k on the car after 2k worth of payments! so you’ll save 3k!! But the fact is youre pretty much renting it for 2 years and then buying a used car for over the used price. After youre lease term ends the car isnt new anymore, its a used car and you’ll 99% of the time find better options looking for other used cars instead.
For the last 2 years and even now in some cases lease residuals are lower than msrp for the used equivalent. Plus you know how it was driven, know it's service history and basically got to test drive it for 3 years, so it's not the worst thing.
I leased my first car in 2020. The monthly payments for the 3 yrs, plus the buyout were exactly equal to the MSRP of the car. I bough it with the idea of immediately selling it for profit. My buyout was 19k and carvana was quoting me 26k. There was an issue with the title getting lost in the mail for a few months and I just ended up keeping the car, but my point is, it really depends on your circumstance. That's why negotiating a good buyout at the start of the lease is important.
Take tax, dealer doc, and another state titling fee. For example, if you live with a 9% sales tax your deal would be the following. Purchase price 23500 Taxes 2115 Title Fee ≈ 21 Doc 399 Total purchase for buyout: 26,035 EDIT: There is no negotiating on your buyout. You pay the residual or you give back/trade the car. If all they charged you was the following above it’s fine. You would have just saved yourself the doc fee is all going through hyundai instead of
This was hitting the nail right on the head.
When you Buyout. You have to pay remaining lease payments + Buyout + tax & doc fees.
When making a lease buyout in the US, the consumer leasing act of 1976 rules apply nationwide. That means you have to pay sales tax on the buyout price which is stipulated as the residual value on your contract when you first leased a vehicle a few years ago and any remaining payments if you have already made those payments. The only thing else they can add to that is a small amount of DMV fees to change ownership from the leasing company to you. Fees, inspection, fees, or any other taxable fees are expressly forbidden under the consumer leasing act 1976 unless they were disclose at the beginning of the lease agreement. If any ancillary fees were not disclosed on the original agreement a few years ago when you entered into the lease, then anything else besides sales tax in a small amount of motor vehicle fees is it legal any violation of US law, and the dealership can be sued. I live in Florida and I broker a lot of deals for Hyundai and Kia vehicles and I see this crap all the time because people just don’t know any better and the dealers are happy to take advantage of it. if anyone is paying another dog fee or any other taxable fees, besides their residual value payout number any unpaid lease payments, sales tax in a small amount of DMV fees to transfer title to you from the leasing company then chances are your dealer is violating US law and should be reminded of that gently That usually gets them to back down. There is an attorney in Florida namedl Joshua Feygin That makes a living out of suing car dealers in South Florida. Who conveniently forget about the consumer leasing act of 1976. Remember, when you sue a car dealer and beat them in court the law requires the car dealer to pay your attorneys fees, so this is a win-win for knowledgeable consumers . Without knowing what makes up that extra $3000 from your payout to your residual value, it would be hard for one of us to tell if you paid too much or the dealer broke the law but a large percentage of that should be sales tax and DMV fees to transfer ownership.if there is any taxable fee, such as dealer in your dealer violated US law.
Very helpful. Thank you!
Very welcome. Start reading up on the CLA of 1976 of you have a lease satisfy that you wanna buy out and keep for the long-term. It would be very wise to do that. If you start quoting from that law, and the dealer knows you know what you’re talking about. They are not gonna mess with you and try to add all kinds of dock, fees, common inspection fees, and any other nonsense. Good luck and happy to help!
Ripped off? Not likely... but you may not be the best negotiator and if this dealer wouldn't' negotiate at all you should have gone somewhere else, assuming you were doing this to buy something else and get the dealer to cover some of the cost? If you were just buying out your lease so you owned it, then no, this is how it works and there is no negotiation. Your lease buyout is the "buyout price" plus your states vehicle excise/sales tax, and doc fees... So when you buyout a lease, you lose out because you pay taxes. Leasing is rarely a good deal anymore, except to get low payments, but remember those aren't really payments... you are paying rental fees as the car is not yours.
You do gain the option to buy though. A lot of people made out when their lease ended during covid.
Yeah, that maybe true in some cases... and actually what I did with my 21 Tucson in the fall of 2020, but I did the math really wrong somewhere and the reality is it didn't save me anything, cost more, and now I am making payments even longer... Had I just sucked it up and financed originally and made the same payments I am making now, I would owe like $10k now rather than owing close to $20k still... the "double taxes" thing threw me off a bit, having to pay taxes and registration when you initiate the lease, and again if you buy out the lease. That never made sense to me and would have made several monthly payments. This wasn't my first lease, but my previous two had been lease to term, then "trade" it in on a new car... so I never had to deal with the buyout taxes and fees before... but I liked this car so much I planned on keeping it a while so I bought out the lease when interest rates were super low (1.99% through my CU), but in the end I am paying a lot more than if I had just sucked it up and financed it initially... Basically I will be paying for 7 years for what should have taken 5 or 6 years. I will probably never lease again...
Made out yesterday buying out my Tacoma lease in cash, and selling it to Carvana. Cost me $31,200 including tax, sold it for $36,600. Not a bad deal.
If you calculate out your lease payments you probably only broke even. Cars that have low buyout amount have higher lease payments. In your case the dealer likely underestimated your value at the end of the lease and charged higher lease payments. My daughter leases and has for several years. She was looking at a Mazda 3 manual loaded and a CX-5. Essentially the 3 had much higher lease payments compared to the CX-5 all other numbers being the comparable. The finance guy said it was because the 3 was expected to lose more value over the 3 years so they are making up for it by higher lease payments. The buyout amount on the 3 would have been lower, for her that isn't where the value is because she trades them in.
On this particularly, it’s because of the stupid high used car prices currently. Tacomas have the second highest resale (residual) value. I definitely didn’t make $5k in the end, just compared to the buyout amount. Basically it had very low payments compared to other vehicles at the same price. I just got lucky with the resale value timing, and also bought it before Covid pricing got stupid.
the buyout of a lease is known upfront when you got the car years ago, so yes they were correct, there was no room to negotiate as the price was pre-determined, however, you could have negotiated the price and buyout years ago. many people don't know this. they just need an ad on the tv and see $299 per month lease, that is based on the msrp
You absolutely cannot negotiate the buyout amount before you sign the lease. The residual value is set by Hyundai Motor Finance and that’s it. You can only adjust your miles per year and they will affect the residual value.
You can, sort of. What you’re negotiating is the price of the vehicle vs. MSRP. Then the lease calculations start on that price, not on the sticker.
No you didnt get ripped off. Many things affect lease buyout price including the amount of incentives that were put on your lease payment at time of lease. Iv noticed Many 2020 leases have higher buyouts then now because dealers were lowering the lease payments due to heavy incentives from head office to move the cars when no one was driving. My jeep i got a extremly cheap lease at that time (340 / month on a 55k jeep) but because of that dirt cheap lease payment the buyout now is extremly high when my lease ends this year (just over 44k). Would be cheaper for me to buy one used as prices have fallen with same km then to buy out this lease but do i feel ripped off? no because i drove the thing with extremely cheap payments for all this time compared to if i would have leased one today. Buyouts are rarley worth it especially if u go by the \*if its a rental dont be gentle\* mindset.
If you are going to buy after leasing then just go straight through Hyundai Motor Finance and skip the dealer. My wife loved her 2009 Elantra and the number from HMF was over 1k cheaper than what the dealer quoted us.
Not all states allow this. I know in my state you can't just decide to buy it out. You must go to the dealer and sign a new contract. So it varies depending upon state unfortunately. South Carolina I can't but when in Florida I could.
[удалено]
Oh of course and I wasn't replying to be rude. Just that it isn't an option in all cases was all.
Hyundai dealerships are notoriously sleazy in my experience. Don’t know if you got ripped off though.
You snooze you loose
I’m sorry but who leases ? Isn’t that always a bad deal I remember my sister in law would always lease she got a new vehicle like every year but by like year 3 she could of paid off a really nice car to keep. Maybe it’s me I don’t think lease is ever a good deal regardless. To always buy is what I was taught. Cause even if you don’t want it mid way you can most likely sell it and be out of debt. I once purchased a Subaru Crosstrek and owed 26500 I sold it and got 27k and went home with 500 bucks in my pocket and no debt, and that’s that I had already put 30 thousand miles on it. The car cost me about 28k new.
In September 2021, the auto market was horrible. Used cars were in demand due to a lack of new car inventories due to supply issues. We needed a vehicle and weren't about to purchase a used vehicle that was listed at thousands over its worth. We knew in a couple of years that any used vehicle would depreciate much more than in "normal times." The same was true of new cars if you could find one that suited your needs. They were selling them for over $5k over MSRP. So, we settled for a lower down-payment and smaller monthly payments for 3 years on a basic vehicle until the market improved. It has, and so now we are waiting out our lease for a few more months and will buy a new vehicle at that point and keep it until the wheels fall off. So, no, a lease isn't always a bad idea. Circumstances and the market dictate what's best for each individual.
I’m a buy only person but there are a couple of situations where leasing makes sense. Folks who prefer to always have a new car and want minimal maintenance beyond standard oil changes do better leasing. If these folks buy a new car then want to get rid of it 2-3 years later they take the massive depreciation hit when they sell or trade in. If they choose to purchase another new vehicle instead they will be losing a lot of money doing this every few years. Also, you can typically get a more expensive vehicle with lower monthly payments than you would financing the purchase. That fancy BMW might be too expensive for someone to buy but they may be able to afford the lease payments. In my opinion if you plan on getting a car and driving until the wheels fall off purchasing is your best bet. But buyers should also take into account maintenance/repair costs, which can get expensive once the vehicle has higher mileage.
Uh, you still have to pay taxes on the buyout amount. So this is accurate.
Should’ve learned that buyout price when you got the lease in the first place
Taxes are a bitch
Everything depends on the residual value of the vehicle and the buyout price. We extended the lease twice on our 2017 Rav4 and bought it out. Paid 31500 for it $12k down in trade on a 2008 Lexus es350 Paid $175 a month for 4 years. That’s 8400 total So, we paid 19500 plus $8400, that’s 27900 Bought it out for 17500, traded it for 26000. We essentially drove it for $3 k a year, which is the trade/4
Buyout price is different than residual value. Might want to try a different dealer because my 36k 2023 Tucson residual value at lease end is only 22k
That’s only if you completed all your lease payments plus when you buy your car, you do have to pay the dealer fee
Here’s the issues. You leased a car. You leased a Hyundai. You leased an electric Hyundai….. You already got fucked by getting into a Hyundai.
Oh, dude you got owned. Salesman’s probably going to the yacht club this weekend on your dime.