The one component that changes the math a bit is, for those months, unless you were actually paying real cash for the car, the Rent Charge takes the place of a traditional APR. So the difference between his traditional loan payment interest and the RC over those months is what he would lose in terms of the rebate/lease cash.
$7500 HMF Lease Cash Available Today - 2/18
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So I got the lease today! The finance guy at the dealership said that if you cancel the contract too soon, the dealership gets some sort of chargeback penalty. He said anything less than 3 months. Weird if that's true.Still, I assume it's still a few days before I can log into the system and even check buyout amounts.
You can get it as soon as your account email comes through for registration. I've heard dealers tell folks 6-mo, 90 days, no days, no penalty. Either way, in my eyes the lease relationship is between HMF and myself. There is a $300 lease fee, the dealer got their $499 paperwork fee, they will be fine. I'm not waiting any days. 🤣.
Great job and good stuff for you!
I'm looking to get lease in Texas to take advantage of the tax rebate. Are you saying I have to pay full sales tax on the value of the car twice?
Texas code says no:
See subsections a, b and c. Check with your local personnel to confirm.
There are manufacturer tax credits that help with leases in TX.
The rules are problematic and discussed often on leasehckr.
Help with Taxes in Texas
That’s great the tax authorities are taking that position and I hope that gets applied more broadly. Good on you for pushing this forward as it obviously is a better result for us taxpayers. I still think the statute, though poorly drafted, supports a double tax on leased cars so I would not...
forum.leasehackr.com
Anyhow, my Ioniq 5 Limited arrived today and I'm taking delivery on Thursday. Given FL tax rules... it doesn't make sense to put much down on the lease when I sign. Hyundai doesn't provide one-pay leases and thus I won't be trading in to save on sales tax.
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Is there something I need to tell my local dealership to convince them of this process? I just left the dealership after trying to lease an Ioniq 5 LMTD AWD. The salesman said leasing doesn't make sense because, even though you get the $7,500 rebate you're still paying the lease's money factor and that ends up being substantially more expensive the buying it outright.
Here's the numbers he was giving me:
With $5000 down that would bring monthly payments to $871.78 for 36 months.
He said that regardless of WHEN I pay off the lease I would still be paying the same amount: so 36x 871.78 + RV (28,918) + taxes&fees. This would bring total to near $60,000.
I tried to tell him about this offer but he said I didn't know how leases work....ugh...
Is there something I can tell or show the dealership to let me lease this car? Does the contract look the same with the dealership regardless of how HMF processes these contracts? Is this a deal with HMF afterwards kind of thing and is there any confirmation I should get from HMF that this will work before I sign a lease contract?
Thanks for the help!
Here's the numbers he was giving me:
With $5000 down that would bring monthly payments to $871.78 for 36 months.
He said that regardless of WHEN I pay off the lease I would still be paying the same amount: so 36x 871.78 + RV (28,918) + taxes&fees. This would bring total to near $60,000.
I tried to tell him about this offer but he said I didn't know how leases work....ugh...
Is there something I can tell or show the dealership to let me lease this car? Does the contract look the same with the dealership regardless of how HMF processes these contracts? Is this a deal with HMF afterwards kind of thing and is there any confirmation I should get from HMF that this will work before I sign a lease contract?
Thanks for the help!
Read the first page and right around posts 115-125. Your lease is with HMF, period (unless the dealer is leasing from a 3rd party). The dealerships a) don't know what the section pertaining to early buyout means, b) pretend not to know, or c) are purposely trying to divert you from it for other reasons.
Either way, dealerships are accountants in the process and they don't hold your lease contract. There are some states where the dealership has to accept the buyout check for HMF but the quote still comes from them. Lastly, if you are planning on keeping the lease entirely through to the end, yes the MF will eat away at a portion of your rebate.
That is so strange. I thought dealers would love to move these cars off that lot whether by lease or purchase. My dealer contacted me and I was the biggest skeptic about the lease buyout. They kept saying I can buy it out early and I wouldn't pay the full amount of interest and there would be no early termination fee. They were right. I saved about 6k off my SEL AWD after all was said and done. And as mentioned, your lease is with Hyundai Motor Finance, not the dealer. I requested my buyout online in 2-3 days after I picked up my car.
I picked up my car on a Friday and my credit union mailed a check for the payoff amount on the next Monday. The process has been smooth with no BS so far. I already received my registration, inspection sticker (state of MA), bill of sale and paid in full letters. The only thing I'm waiting on now is the title.
In fact I'm considering doing this lease deal again to upgrade to a Limited AWD if I can find one.
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Thanks for all the info. This is a super helpful thread. I got a copy of a lease agreement from the dealer and they're including a $7,315.49 Rent Charge which is in addition to any depreciation and amortized amount added on. So this basically negates the $7,500 credit.
Ironically I stopped by the local VW dealership today to test out the ID.4 (knowing that I can purchase and claim the $7,500 later) and the salesman said they're ALSO doing the $7,500 lease option for those who don't qualify due to income brackets being too high. I asked to see a copy of a lease agreement and their Dealer Fee "Rent Fee" is $0.00. I told him about Hyundai Freemont's dealer lease and he said that was pretty shady. (He was also incentives to sell me an ID.4 but....they're kinda ugly)
Ironically I stopped by the local VW dealership today to test out the ID.4 (knowing that I can purchase and claim the $7,500 later) and the salesman said they're ALSO doing the $7,500 lease option for those who don't qualify due to income brackets being too high. I asked to see a copy of a lease agreement and their Dealer Fee "Rent Fee" is $0.00. I told him about Hyundai Freemont's dealer lease and he said that was pretty shady. (He was also incentives to sell me an ID.4 but....they're kinda ugly)
This is not true (Regarding the rent charge). The intent here is to show you, you can purchase prior to maturity and the RC is prorated. We drove away on the 4th and bought out 3 days later. Cost us ~$400 after all said and done. Net: $7100. My RC in its entirety was $6200 for 24 months. I used 3 days of that 24 months.
I posted all of the details on page one and in posts #115-#123
I believe VW was the original manufacturer to do this lease cash deal. They had to figure out a way to get rid of German made 2022 ID4s which do not qualify for the 7500 tax credit. No one was going to buy a 22 when the Tennessee built 2023 ID4 did qualify.
I read that Volvo also does this deal for the XC40 Recharge.
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@acadapter - thank you for your guidance on this. This is a super interesting approach. Basically if your intent is to buy out the car in the first few days, it doesn't really matter what your MF or your monthly payment is. What matters is the adjusted capitalized cost and you want that number to be as low as possible. Am I right? Is that number negotiable or is that fixed?
Has anyone done this successfully in California?
Has anyone done this successfully in California?
Yes, 100% right. The ACC should just be the MSRP (or whatever you negotiated) + title, tags, and paperwork fees, + depending on your state, your taxes; MINUS your $7500 lease cash and any down payments.
As long as your state does not require you to pay taxes again since you are the original leasee, when you purchase early, your payoff will be your remaining leftover cost of the car + $300 lease paperwork fee. Any interest you accumulated in your first payment (which is due at signing) is gone/prorated which is why you want the lowest ACC possible. The more ACC, the more interest in each payment.
Not sure on California (yet) since I tackled this the first day Hyundai offered it, but the language in HMF's contract pertaining to early purchase is actually ripped from California state code. I posted the section in the first page.
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Got into the HMF system this morning and generated the buyout letter! Only 2 costs to buy out- unpaid lease balance and sales tax. One question. There is a security deposit letter as part of the forms, but we didn't pay one. I'm assuming that I can ignore that one, and not have to worry about getting someone at the dealership to sign?
That also wasn't applicable in my case so we ignored it.
I asked the credit union and dealer what that was for but both of them had no idea. I did put 1k down but that wasn't a security deposit, that just went towards the payment. So I omitted it.
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To the folks who have done this process... did you finance your buyout? Did you finance with Hyundai or someone else? What kind of terms? Thank you
Any of your Bank/Credit Unions will suffice. We used a credit union and since I planned this in advance, we applied for the loan the same day we applied for the lease so 1 - Hard Pull on the credit and the loan (on my credit union's model; YMMY) is still treated as a new car loan. You have to choose what's best for you as far as months/APR.
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