Real world car lease deal. Come on in!

Discussion in 'The Pub' started by gdomeier, Jan 31, 2015.

  1. gdomeier

    gdomeier Supporting Member

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    I was approached by the Hyndai dealer we purchased our 2012 Azera from. They want us to trade in the azera and lease a 2015 genesis. Here are all the details.

    2012 azera purchased on 12-20-2012. I don't have the details available, but we are paying the car off in 3 years with a total interest of around $2,000 or $3,000. Car has had normal maintenance costs. It will be due for new tires this year ($800-$900?) Here is their first proposal.

    2015 genesis $45,650
    Discount $3,018
    Loyalty $1,000 Sounds impressive, like I'm part of a club! ;)
    Rebate $1,000

    Total adjusted price $41,632

    Trade in allowance $17,500 (kbb said about $20k dealer trading value)
    Trade difference $24,132
    Doc fee $75
    Tax $1,568.58
    Non tax fee $532.75
    Net price $$26,299.33
    Trade payoff $9,650

    Balance $35,949.33

    36 monthly lease payment of $267 We current pay about $750 per month and have 11 payments left. Car has 30k miles. Annual mileage allowed on the lease is 12,000.

    Ok, I've never been a lease person, but all this lease talk on tgp got me curious. What do all you lease experts think of the deal (I assume it's bad for me) and what would you counter with?
     
  2. Boris Bubbanov

    Boris Bubbanov Member

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    My girlfriend takes a massive amount of family abuse for trading in her Toyota in the 1980s because it needed new tires. Every time she voices an opinion about cars, they silence her by mentioning it.

    You should be able to get a set of 4 General AltiMax RT43s for that car for under $ 600. If these cars are so great, why are you having to get rid of a 2012?

    With all due respect, and kindest regards, get a grip on yourself.
     
  3. jrjones

    jrjones Member

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    11 months from being paid off? Pay that sucka off and enjoy the extra expendable income of not having a car payment or put it in savings and save up to pay cash for a new car down the road.
     
  4. AZChilicat

    AZChilicat Member

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    1.6k tax on what?

    Personally, I would keep the two deals separate. Asymmetry of knowledge concerning trade value is a major way dealers make money. I would drive the best lease deal I could and sell the other car privately.

    Also, what is the residual and what is the money factor? Never enter a lease without knowing that.
     
  5. gdomeier

    gdomeier Supporting Member

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    That's how we normally handle our cars. Pay them off and sell them somewhere around 100k miles or when the repair bills start to add up.. I have never even considered leasing before, because I thought it poor financial choice in most cases.

    Since there was a bunch of lease talk here and the dealer approached me about a trade/lease, I thought it would be fun to see what the folks here at the gear page thought about this concrete example.

     
  6. AZChilicat

    AZChilicat Member

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    You're already getting ripped off for a thousand bucks. I'm going to suggest leasing might be dodgy for you.
     
  7. Boris Bubbanov

    Boris Bubbanov Member

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    We're creatures of habit. We get accustomed to doing things a certain way in the 1960s, 1970s, 1980s, even the 1990s because it made real good sense then, to move up to the newest reliability, safety and economy. Because the advances were so swift, especially '81 to '91 and '91 to '01.

    But things have changed. I would say this about your existing Azera:

    1) Either it can do 175,000 miles easy, or

    2) You're buying a substandard brand of car.

    If you intended to trade the Azera on a Lexus LS, I'd say, go for it by all means. But what I do not understand is staying with the brand that sold you a car that apparently has crapped out well before it should have. Or if it isn't crapped out, there's no business model that justifies replacing it with another product from the same company.
     
  8. Fishyfishfish

    Fishyfishfish Member

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    Don't be taken it. Just pay your car off and buy a warranty for any problems that might arise (if your paranoid like me) Grass is ways greener.
     
  9. pjrhd28

    pjrhd28 Silver Supporting Member

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    Couple of questions:


    Is there sales tax on top of the $ 267? I don't think there should be

    What's the residual on the new car and is it an option to purchase?This is triple important considering you're putting a significant amount of money down.

    There is an indeed a goof in the math as AZChill pointed out- where's the $1,000.00 rebate (is it in your pocket??)? BTW, my guess is that the $1.6K in (sales) tax is the sales tax on the difference between the sales price of the new car and the trade in value of the old car- then, there wold not be sales tax on the monthly payment. But it's a guess.

    What are your options to buy the car? Do you have cash? A HELOC? Is the dealer offering financing deals on purchases?(60 months, no interest?)

    Will you use the car for business?

    If you sell the car outright, can you take a credit on either a new car purchase or lease on the amount of sales tax due?

    What fees either are or might be due on turning in the leased car?

    This can get crazy complicated if you want it to. If you don't want to do this kind of analysis, let competition work for you. Find another Hyundai dealer or someone who sells a car similar to the Genesis.

    And get a purchase scenario, too.
     
  10. Tahitijack

    Tahitijack Member

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    Based on what's presented, I would thank the Dealer but keep what I have, pay it off in 11 months and enjoy. If you are suffering from too high car payments, trade it in for $20,000 value and buy a car that fits your budget probably a new car at $20K or less. I'm old fashion and even with depreciation I want to own the vehicle not a pile of lease payment receipts.
     
  11. gdomeier

    gdomeier Supporting Member

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    There have been no problems with the azera. It's been a great car so far. We had no plans to sell it. The sales guy approached me when I had it in for an oil change.

    The only thing my wife doesn't like is how it handles in the snow. The genesis we would consider is awd.
     
  12. frankg11

    frankg11 Member

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    Car dealer friend of mine one said, you can never win on a car. So buy new and drive it till it blows up. Or buy used and drive it till it blow up.

    Blow up means costs more than a car payment and service to keep running.

    I have had 7 cars in 30 years using this model. I buy new and drive it till its done. Last car was a BMW X5 that lost its tyranny after 10 years cost more to fix it than the car was worth. Took the 7k trade and bought another one. It has about 200k on the odometer when. It blew. Another was a Nissan Pathfinder. 250k before it blew.

    Keep your money and your current car.
     
  13. Bobby Wasabi

    Bobby Wasabi Member

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    This. The other scenario is foolishness.
     
  14. pedalcr8z

    pedalcr8z Supporting Member

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  15. THebert

    THebert Member

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    If they approached you then make 'em squeal before doing a deal. As in not taking any first offers. Don't have much else except recognize you are in the driver's seat on this one.
     
  16. Layne-o

    Layne-o Silver Supporting Member

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    I'll echo this statement as well. A three year old car with 30k miles is below normal usage (e.g. 15k/year mileage allowance). You still have six or so years left on your limited warranty with the manufacturer and you're relatively close to being paid off. Working towards having a clean, clear title on your current vehicle is the best scenario. Avoid the "shiny, new" syndrome and subsequent payments.

    Generally speaking, you'll become "car poor" as you continue to roll negative equity and/or lease end costs (e.g. excessive mileage, wear & tear, disposition fees, and whatnot) when you continue the leasing cycle.

    YMMV (literally & figuratively),

    Layne
     
  17. GCDEF

    GCDEF Supporting Member

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    I agree with most of what's been said. You have an almost paid for 2012 keep it, and never, ever let a dealer set the terms of a deal.
     
  18. AZChilicat

    AZChilicat Member

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    If he has a three year old car with 30k miles where's this excess mileage, wear and tear, suddenly coming from?
     
  19. Layne-o

    Layne-o Silver Supporting Member

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    I'm sorry; I wasn't clear. The excess mileage, wear and tear, disposition fee, and etcetera would be generated if the OP took the new Genesis lease deal. The OP is on a retail note for his current vehicle, correct?
     
  20. AZChilicat

    AZChilicat Member

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    No, it would not be generated.

    Let's examine what you've already noted, namely, in three years of ownership they've driven 30k miles. Is it your position that he will suddenly increase his annual mileage by more than 20%? His lease deal is for 12k a year, he's averaged 10k per year for the last three years, so for your statement to have any merit you must be assuming their driving habits will suddenly lead to an over 20% increase to accomplish your assertion.
     

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