MarSciGuy
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Any Advice Or Problems Leasing From Hyundai?

Fri Dec 30, 2011 11:06 pm

Hi all-

I am ~15 hrs away from making the largest financial commitment yet in my life, committing to lease a Hyundai Elantra Touring SE. I have already received some advice, but as the membership of this site is so wide and varied I figured I'd post here and ask for any constructive advice or tips. We have already negotiated the price down a bit, and thats actually why we might lease (to make it more affordable for the near term- I would buy the car after the lease is up).

To be completely honest, I would never have even heard of this car if not for someone recommending it to me on this site a year or more ago...

I don't NEED to get a new car right now, but my Civic has 195k miles on it and the dealership is offering me 5500 for it trade in (obviously a promotion!)

Thank you all for your advice/help/tips ...

One caveat - If I am to buy anything, I'd prefer either a wagon-ish vehicle with ample cargo room or small SUV, but currently we really don't have much extra money to spring for an SUV, this is a pre-emptive move against the nextcostly fix on my Civic.

As such, I have searched high and low for affordable Wagons, and came to this one... Subarus are an option as well, though I believe they are pricier and thereby out of the current consideration.

Thanks again!
"There weren't a ton of gnats there where a ton of gnats and their families as well!"
 
Braniff747SP
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RE: Any Advice Or Problems Leasing From Hyundai?

Fri Dec 30, 2011 11:33 pm

Quoting MarSciGuy (Thread starter):
Subaru

  

The Outback is a great car. Starts in the low 20's, with good lease prices.
The 747 will always be the TRUE queen of the skies!
 
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Jetsgo
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RE: Any Advice Or Problems Leasing From Hyundai?

Fri Dec 30, 2011 11:42 pm

My wife and I have a 2011 Hyundai Sonata SE which we leased back in April 2010. As for the leasing process, everything went smooth and we haven't experienced any problems yet. As for the car, it's been a wash. While it has had multiple issues come up, Hyundai has been great about taking care of us each and every time.

Their trade in offer for your Civic seems a bit high to me, are you sure they're not inflating the price of the car and/or your lease payments? Hyundai's current lease offer for a 2012 Hyundai Elantra Touring GLS is $199/month with $2,200 down. Since the SE runs about $3,500 more, your monthly lease payment should not change much at all, assuming you throw all of your Civic's equity into the Elantra. One last thing to consider... going into a lease already knowing you want to buy the vehicle at the end is never a wise financial decision... Just skip the lease and just purchase at the beginning. It sounds like you are pretty conscious of monthly payments... just don't let the dealer know that. They could sell you a bag of shit while you swore you got a dozen roses.

[Edited 2011-12-30 15:46:48]
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MarSciGuy
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:03 am

Quoting JetsGo (Reply 2):

My wife and I have a 2011 Hyundai Sonata SE which we leased back in April 2010. As for the leasing process, everything went smooth and we haven't experienced any problems yet. As for the car, it's been a wash. While it has had multiple issues come up, Hyundai has been great about taking care of us each and every time.

Their trade in offer for your Civic seems a bit high to me, are you sure they're not inflating the price of the car and/or your lease payments? Hyundai's current lease offer for a 2012 Hyundai Elantra Touring GLS is $199/month with $2,200 down. Since the SE runs about $3,500 more, your monthly lease payment should not change much at all, assuming you throw all of your Civic's equity into the Elantra. One last thing to consider... going into a lease already knowing you want to buy the vehicle at the end is never a wise financial decision... Just skip the lease and just purchase at the beginning. It sounds like you are pretty conscious of monthly payments... just don't let the dealer know that. They could sell you a bag of shit while you swore you got a dozen roses.

Thanks Jetsgo! ...the issue with lease vs. buy is the only thing giving me pause, but the monthly price differential is quite a bit for us at this point, about $90 a month. They quoted me $347/month (72 month loan) for purchase but $259/month lease... At the moment, that at least tips the balance closer to going for it vs. holding off and crossing my fingers that my car doesn't cost me beacoup bucks in the net months...
"There weren't a ton of gnats there where a ton of gnats and their families as well!"
 
KFLLCFII
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:23 am

If you can afford to buy it, buy it. Otherwise, not only are you paying Hyundai for the reduction in value of the car during the lease term, but you're essentially paying them rent...Neither of which you will get back at the end of the term, and you will conclude the lease with exactly -zero- equity to show for anything you have been paying on over the last few years. Then you get to pay a completely different term of finance for another set of years, essentially only gaining half the equity you would have otherwise. And when it's all said and done, you'll have ended up paying on the same vehicle between 1.5 and 2 times as long as you had just financed it from the onset, and most likely thousands more.

The monthly payments may be more affordable now, but it would most certainly cost thousands more in the long run, and I should be able to show you:

Quoting MarSciGuy (Reply 3):
The issue with lease vs. buy is the only thing giving me pause, but the monthly price differential is quite a bit for us at this point, about $90 a month. They quoted me $347/month (72 month loan) for purchase

That's $24,984 for total of payments, not including down payment (which you are expecting would be $_____?).

Now, if you were to pay:

Quoting MarSciGuy (Reply 3):
$259/month lease

How long is the quoted lease term, how much $$ down, and how much $$ are they quoting the end-of-lease buyout to finance?

At that (high) offer price of $5,500 for a 195k Civic, and only $259/month on the lease, I'm guessing either your down payment is high, your lease term length is long, or a combination of both.
"About the only way to look at it, just a pity you are not POTUS KFLLCFII, seems as if we would all be better off."
 
MarSciGuy
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:28 am

Quoting kfllcfii (Reply 4):
If you can afford to buy it, buy it. Otherwise, not only are you paying Hyundai for the reduction in value of the car during the lease term, but you're essentially paying them rent...Neither of which you will get back at the end of the term, and you will conclude the lease with exactly -zero- equity to show for anything you have been paying on over the last few years. Then you get to pay a completely different term of finance for another set of years, essentially only gaining half the equity you would have otherwise. And when it's all said and done, you'll have ended up paying on the same vehicle between 1.5 and 2 times as long as you had just financed it from the onset, and most likely thousands more.

The monthly payments may be more affordable now, but it would most certainly cost thousands more in the long run, and I should be able to show you:

Quoting MarSciGuy (Reply 3):
The issue with lease vs. buy is the only thing giving me pause, but the monthly price differential is quite a bit for us at this point, about $90 a month. They quoted me $347/month (72 month loan) for purchase

That's $24,984 for total of payments, not including down payment (which you are expecting would be $_____?).

Now, if you were to pay:

Quoting MarSciGuy (Reply 3):
$259/month lease

How long is the quoted lease term, how much $$ down, and how much $$ are they quoting the end-of-lease buyout to finance?

At that (high) offer price of $5,500 for a 195k Civic, and only $259/month on the lease, I'm guessing either your down payment is high, your lease term length is long, or a combination of both.

Down payment of $1500, 36 month lease... buyout provision after 36 months in the $10-$11k range (not exactly sure, will see the drawn-up paperwork tomorrow)
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Jetsgo
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:34 am

Quoting MarSciGuy (Reply 3):

Keep in mind at the end of traditional financing, you at least have a car to show for it. At the end of the lease, you neither have a car or the equity from the Civic.

Quoting MarSciGuy (Reply 5):
Down payment of $1500

Do you owe $4,000 on the Civic? I'm still curious how they reached $5,500 for trade in. Is that the KBB?
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MarSciGuy
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 1:03 am

Quoting JetsGo (Reply 6):
Quoting MarSciGuy (Reply 3):

Keep in mind at the end of traditional financing, you at least have a car to show for it. At the end of the lease, you neither have a car or the equity from the Civic.

Quoting MarSciGuy (Reply 5):
Down payment of $1500

Do you owe $4,000 on the Civic? I'm still curious how they reached $5,500 for trade in. Is that the KBB?

No I don't... they are running a promotion much like cash for clunkers but not quite... $6k for any and all trades provided you buy/lease a new car - 4 of that 6k is guaranteed, 500 for recently graduated college, 500 for first time financing and I'm actually not sure where the last 500 came from, unless after we initiated negotiating they upped that portion to try and seal the deal. Apparently the final 2 $
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KFLLCFII
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 1:06 am

Quoting MarSciGuy (Reply 5):
Down payment of $1500, 36 month lease... buyout provision after 36 months in the $10-$11k range (not exactly sure, will see the drawn-up paperwork tomorrow)

So total of lease payments is $9,324 + $1,500 down = $10,824 spent, not including the total of payments after the finance. Financing, say, $10,500 (middle of the road) at 8.9% APR (higher for used cars, also depends on credit) for a term of 60 months, 6% sales tax (not sure what it is in your locale) gives a monthly payment of approximately $234, total of payments $14,040. That amount plus the lease is $24,864, which is actually less than if you were to buy it outright at $24,984 total of payments. It doesn't seem right, but then again:

Quoting JetsGo (Reply 6):
Do you owe $4,000 on the Civic? I'm still curious how they reached $5,500 for trade in. Is that the KBB?

If they're offering you $5,500 for the Civic, and they still want another $1,500 down, that's $7,000 you're really putting down. And if that's the case, then change the above to read:

So total of lease payments is $9,324 + $1,500 cash plus $5,500 car = $16,324 spent, not including the total of payments after the finance. Financing, say, $10,500 (middle of the road) at 8.9% APR (higher for used cars, also depends on credit) for a term of 60 months, 6% sales tax (not sure what it is in your locale) gives a monthly payment of approximately $234, total of payments $14,040. That amount plus the lease is $30,364. Versus $31,984 for a finance only ($347/month for 72 months plus $1,500 cash plus $5,500 car).

It still doesn't seem right. Are you sure the numbers quoted include the car, taxes, etc, and not just a show "number" before everything else is figured in?



**Edited to add after the last post**

I see the $5,500 is not all-car, but the question still remains: Do they still want another $1,500 after that?

[Edited 2011-12-30 17:09:18]
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MarSciGuy
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 5:42 am

Yes, to be concise... the 1500 is the fees apparently, but that is counted as the down payment
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scrubbsywg
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 7:40 am

Quoting kfllcfii (Reply 4):
If you can afford to buy it, buy it.

This is the only advice i can offer to this thread, but with a caveat.

5.5 years ago i leased a VW rabbit as it was just after i got my first "real" job after school and needed a new car. The reduction of monthly payments were the big tipping point between leasing and buying. It was a great decision at the time; lower monthly payments along with the uncertainty of what was coming 4 years down the road sounded better to me.

However, 4 years down the road i was making more money, liked the car, didnt abuse it, it had low mileage, and I didn't feel like going through the whole choose another car, negotiate, etc. i was then faced with the fact i still wanted my car and now had 11 grand left to pay for it!

I ended up buying out my lease with a line of credit within about a year, but it was a big jump in payments; mostly because i am debt averse and dont like HAVING to make payments on anything. If i were to be choosing a car now, i would likely go to buying it quickly.

However, if you like having a new car every four years(warranty is the big benefit) and like having eternal monthly payments, then leasing is fine.
 
kiwiinoz
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:15 pm

The primary problem with leasing a car from Hyundai is that you end up with a Hyundai
 
L410Turbolet
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:25 pm

Quoting kiwiinoz (Reply 11):
The primary problem with leasing a car from Hyundai is that you end up with a Hyundai

  This is either just your badge snobism or you have no idea what you are talking about. Hyundai made such a giant leap in quality in recent years that had other manufacturers done the same they would not be on the verge of bankruptcy.
 
BMI727
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RE: Any Advice Or Problems Leasing From Hyundai?

Sat Dec 31, 2011 12:35 pm

Quoting kfllcfii (Reply 8):
That amount plus the lease is $24,864, which is actually less than if you were to buy it outright at $24,984 total of payments. It doesn't seem right, but then again:

Of course that's 96 months of payments on the car. Is he really going to want to keep a Sonata for 8 years?

The other thing is that while Hyundais are better than they were, I think resale value isn't great. I'd be wary of making payments on a Hyundai for that long and of any buyout clause. I would think that if you buy the thing for $11,000 in three years, you might be underwater as soon as you sign the paper, and even more likely to be underwater the closer you get to the end of the payments which could be trouble if you go to trade the car in.

Quoting L410Turbolet (Reply 12):
Hyundai made such a giant leap in quality in recent years that had other manufacturers done the same they would not be on the verge of bankruptcy.

Maybe next Hyundai can make a car that doesn't look like it melted.
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