[acadapter]

Didn't see this mentioned yet, so wanted to bring it up to see what others are doing/seeing. I took another family member in to get their I5 Limited that I negotiated and changing to the lease to get the $7500 rebate is now an option. This made sense to me since you can purchase before the maturity date. We went ahead and filled out the paperwork while we wait for the downpayment check to arrive from the bank; wanted to make sure all of the terms were accurate.

Residual Value is 61% with a .00361 MF. I am trying to make sure the Purchase before Maturity (Section 23, subsection B) process only charges you interest on the months the lease is open vs the entire lease. Anyone worked through these with HMF before?

 

[zamafir]

Friend just did the same with the ID.4, leased for the $7500 rebate then converted it to a loan, nice! I told a few folks, looks like we'll have more IONIQ5 friends .

 

[hammick]

I don't understand. You can get the $7,500 tax rebate on a lease even though the vehicle isn't make in North America?

 

[Hodog16]

New tax credit laws don't apply to corporations, who are the ones who get tax credits in leases, so it doesn't matter where the vehicle or battery is made, or income of course.

Other companies have been hip to this and have offered $7500 off leases only on EV's in the form of a rebate, passing on the savings to the consumer.

 

[rbdavis808]

CarsJubilee posted a video today stating that this offer from Hyundai financing may not continue past 2/28, so anyone counting on this may want to act very quickly.

 

[acadapter]

CarsJubilee posted a video today stating that this offer from Hyundai financing may not continue past 2/28, so anyone counting on this may want to act very quickly.

This is accurate from what I saw but probably has a silver lining. The official release has 2/18-2/28 on the info. However, rebates/cash programs usually start and stop before the next month so, it's possible the next will renew on 03/01

 

[rbdavis808]

Might depend upon how many cars are sitting on lots at month's end?

 

[Beaker]

What is the cost of buying out the car early?

 

[voxel]

What is the cost of buying out the car early?

Depends on the state. I would not lease in Texas due to how lease sale tax is setup there.

I pinged my Hyundai dealer and put my name on an incoming Limited at MSRP. Zero info on the Ioniq 6 and GV60 is still not available (dealer thought summer of 2022 but here we are 6+ months later). I was told the $7500 cap reduction should apply but until I see the contract... I don't believe it.. yet.

 

[acadapter]

Depends on the state. I would not lease in Texas due to how lease sale tax is setup there.

I pinged my Hyundai dealer and put my name on an incoming Limited at MSRP. Zero info on the Ioniq 6 and GV60 is still not available (dealer thought summer of 2022 but here we are 6+ months later). I was told the $7500 cap reduction should apply but until I see the contract... I don't believe it.. yet.

Right. It should be the Adjusted Cap Cost, which is whatever your total was minus the down payment, any prorated fees, and rebate. But, depending on your state, they might make you pay taxes at the sale and at the lease buyout. In MD, if the original leasee is doing the purchase, MD doesn't charge tax on that transaction.

 

[mralex1986]

I have to say, I love all of my American friends south of the border, but the stories I've read on this forum over the years from Americans about funky taxes, strange rebate rules, dealerships jacking new car prices, the requirement to comb over the different ways interest rates are applied, and waiting for cheques from banks for down payments?!? Just reading about the process makes my brain hurt, I have no idea how you guys manage it. Kudos to you all!

I've leased and financed vehicles over the past 10 years, deposits given simply via debit or credit cards, taxes and interest spelled out in the plainest English on the invoice before even committing to the purchase (closed terms), rebates managed completely by dealerships, and I think we have laws about marking up new car prices. I don't know, it just seems like there's room to simplify things for you guys down there. Not sure what that requires though, as it seems like there isn't much harmony with the rules between states.

 

[ev4ev]

This math doesn’t work out from Hyundais website.

Bonus resulting in a net capitalized cost of $36,525. Net capitalized cost includes $650 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $21,021. Option to purchase at lease end $22,949.

When I leased my 2019 ioniq I saw the buyout was for $13000 and matched the capitalized cost. This doesn’t look like Hyundai updated their monthly payments or buyout yet. Beware the details!

 

[acadapter]

This math doesn’t work out from Hyundais website.

Bonus resulting in a net capitalized cost of $36,525. Net capitalized cost includes $650 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $21,021. Option to purchase at lease end $22,949.

When I leased my 2019 ioniq I saw the buyout was for $13000 and matched the capitalized cost. This doesn’t look like Hyundai updated their monthly payments or buyout yet. Beware the details!

Agreed here --- What I am still awaiting an answer on is this here ----

"ADJUSTED LEASE BALANCE. Your Adjusted Lease Balance is the Adjusted Capitalized Cost disclosed on page 2 of this lease, less all depreciation and other amortized amounts accrued
up to the termination date, calculated according to the Constant Yield Method. "Constant Yield Method" means the method of determining the rent charge portion of each base monthly payment
under which the rent charge for each month is earned in advance by multiplying the constant rate implicit in the Lease times the balance subject to rent charge as it declines during the
scheduled Lease Term. At any time during the scheduled Lease Term, the balance subject to rent charge is the difference between the Adjusted Capitalized Cost and the sum of (1) all
depreciation and other amortized amounts accrued during the preceding months and (2) the first base monthly payment."

If the last portion = "Make all of your payments early," then, the lease doesn't actually make sense.

 

[Beaker]

Where did you get the actual text of the lease? My dealer is giving numbers but not the full text of the lease agreement. I would love to read it and try to figure out the legaleese

 

[voxel]

Where did you get the actual text of the lease? My dealer is giving numbers but not the full text of the lease agreement. I would love to read it and try to figure out the legaleese

Post the numbers on Leasehckrs and they will tell you if it is a good lease or not.

With MF so high these days... leases are NOT cheap. The MF is basically 10-12% APR in many leases I've seen.

RV is about 50% so your end of lease purchase price is MSRP x 50% (or 52% or 49% etc). It all depends on the length of your lease.

 

[acadapter]

Where did you get the actual text of the lease? My dealer is giving numbers but not the full text of the lease agreement. I would love to read it and try to figure out the legaleese

It's ours. that paragraph is the crux of the difference between early purchase and pay at maturity. I completely agree, the pay at maturity option doesn't make sense as it eats up the majority of the $7500.

The dealer hasn't processed it yet since it's just a placeholder until we deliver the down payment and decide on the financing vs. lease (with early purchase) TCO. The GM wanted to track down the required payoff information but since the current "incentive" has an expiration date of 02/28, wanted to make sure something was on the books for the moment.

Here is the section that leads to the above ---

A. PURCHASE OPTION AT MATURITY. At the Scheduled Maturity Date, you may purchase the Vehicle under the conditions and for the amount set forth in Section 9, if you are not in Default.
B. PURCHASE OPTION BEFORE MATURITY. You have an option to purchase the Vehicle at any time before the Scheduled Maturity Date if you are not in Default, under the terms and conditions
in Section 9, except that the Purchase Price will be the Adjusted Lease Balance figured according to Section 22D.

 

[acadapter]

Post the numbers on Leasehckrs and they will tell you if it is a good lease or not.

With MF so high these days... leases are NOT cheap. The MF is basically 10-12% APR in many leases I've seen.

RV is about 50% so your end of lease purchase price is MSRP x 50% (or 52% or 49% etc). It all depends on the length of your lease.

RV is 61% for a 24mo and the MF is 8.6%/.00361. Either way though, the goal would be to lease then buyout immediately (in this case).

 

[ev4ev]

I received an email and was told the Residual value after 36 months is $25,377.60, not sure if that is the actual buyout price but I think it is.

Total payments $496 x 36 months is $17,856.

Total payments --> $43,233.60 + $650 acquisition fee + other capitalized reduction on a $49,760 car. So, there is a discount but it's not the full $7500 for sure because the leasing company is charging the interest over the 36/39/48 months upfront.

 

[Beaker]

I know it is not a good lease if I actually ride it out as intended. I am trying to find out if paying it off after the first payment is a better deal than not having a lease at all. Which seems to be different than what the calculators check

 

[acadapter]

I received an email and was told the Residual value after 36 months is $25,377.60, not sure if that is the actual buyout price but I think it is.

Total payments $496 x 36 months is $17,856.

Total payments --> $43,233.60 + $650 acquisition fee + other capitalized reduction on a $49,760 car. So, there is a discount but it's not the full $7500 for sure because the leasing company is charging the interest over the 36/39/48 months upfront.

This makes sense. The net difference is still ~$5800 in your favor. From what I've seen though, the calculator hasn't been updated properly (like what's mentioned by another forum member) to look like what you have. In my case, for complete maturity, the RV + the payments is more than buying the car with cash without the $7500. That would be a definite no.