2017 Sante Fe Sport 2.0T Ultimate AWD with Tech Package

Reporting a lease transaction from end of December 2016.

Hyundai Sante Fe Sport 2.0T Ultimate AWD with Tech Package
36 / 10K
New York City (sales tax on depreciation amount @ 8.875%)

The Deal: $1706 Down / $389 x 35 months + $400 disposition fee

The Details:

MSRP: $41245
Agreed Price of Car: $36770
Gross Capitalized Cost: $38924

Agreed Price of Car ($36770)

  • Sales / Use Tax ($1242) (8.875% tax on depreciation)
  • DMV Fees ($220)
  • Doc Fee ($75)
  • Misc Fee ($22.50)
  • Acquisition Fee ($595)

Capitalized Cost Reduction: $4653

Cash Down ($1706)

  • Rebates ($3750) (3000 rebates and 750 competitive coupon)
  • First month ($389)
  • Sales / Use Tax on Capitalized Cost Reduction ($413) (cost reduction is still taxable @ 8.875%)

Net Capitalized Cost: $34270
Residual Value: $20622 (50%)
Depreciation: $13648
Rent Charge: $355 (.00018 Money Factor or .43% APR. I have excellent credit)
Total of Monthly Payments: $14004
Monthly Payment: $389

I think it’s a decent deal especially considering the really steep residual value drop (50%). Doing the math, the total monthly cost (to include money down and end of term fee) for leasing this car is $437 / month. However, since this is NYC, there is a 8.875% tax included which works out to roughly $46 / month. So the monthly cost without tax is around $390. That works out to roughly $108 per $10,000 of car being leased (tax not included).
The interesting thing is the 50% residual value. Conventional wisdom is that such a low residual value makes it impossible to have a good lease deal but in this case, the deal is decent. The reasons: the $4475 discount from MSRP, the additional $3750 rebates, and the really low Money Factor.
What is really interesting to consider is that when the lease is up, if the car is worth more than the residual value estimate of 50%, then I might be able to pocket the difference (by purchasing the car at residual value and selling it at market value).

I have nothing to base this on, but it seems really high for a Hyundai. May not be a 1:1 comparison, but someone posted a deal they got on a well equipped Toyota Highlander (assuming you need third row seating) for under $300/month. You should be able to get well under $350/month on that one even if you can’t replicate the deal.

This is ultimate with tech package, so it is comparable to Highlander Limited with Safety. That would be higher than XLE. But the low residual of the Santa Fe is definitely what drives the lease price so high (offset by incentives and discounts totalling around 20%) but that still leaves 30% depreciation.

The Santa Fe Sport is a smaller, two-row SUV so it would not be comparable to a Highlander. Slightly more upscale than an RAV4, so no direct Toyota competitor. More like a Ford Edge, Nissan Murano, etc which slot in between the Escape/Explorer and Rogue/Pathfinder, respectively.

Can you itemize your rebates? Did you take advantage of the Uber rebate and BoostUp rebate that Hyundai offers?

I have to believe you can get a better deal from them, or more vehicle for that price from a different manufacturer. I feel like I’ve seen some good deals on here from NJ? Have you tried?

Have you test driven other vehicles? I personally was not a fan of the Sante Fe Sport when I test drove it.

He’s already sealed the deal on the Santa Fe Sport, hasn’t he?

The monthly payment is $389. But this is NYC and there is a pesky 8.875% sales/use tax which works out to around $46 / month. So the equivalent monthly payment not including sales tax is under $343 per month.
If we take the money down ($1706 - includes first month) and disposition fee ($400), and convert to a monthly basis and add to the $343, we end up with a monthly cost of $390 per month.
This doesn’t include the use / sales tax.
I’m mentioning this because according to this article:
a good lease deal is anything that costs less than $117 per $10K of car not including sales tax.
A fantastic lease is anything under $100 per $10K of car.
Doing the math (I made a mistake in my original post)
MSRP: $41245
Total Monthly Equivalent Cost: $390
Cost per $10K of Vehicle: $95
So this should qualify as an excellent lease according to that article.

$750 of the $3750 rebate was for a “competitor upgrade” so I had to show a registration for another manufacturer’s car. I don’t know the specifics of the $3K in rebates though.
I definitely shopped around and this was the best deal I could find by far though I didn’t venture into NJ.
I really like the Sante Fe Sport. It’s fully loaded and has all the bells and whistles I could ever want (e.g. iphone app to turn on the car remotely). The suspension is a little tough but I’ve been told it loosens up.
Doing my analysis, I felt like it was a fantastic value. And there was one factor that really set it apart form other manufacturers.
The background is: I had just a baby and wanted a safe vehicle meaning 1- the latest in safety technology and 2- weight.
Both Sante Fe’s are on the IIHS safety list and the tech package includes AEB (Automatic Emergency Braking).
Originally, I had the full size 3-row Sante Fe in mind. But then I sat in the 3rd row and realized it’s only useful for kids, which I don’t have. The thing with 3-row SUV’s is that there is a tradeoff with the cargo space. On the Sante Fe, with the 3rd row up, the cargo space is a tiny 13.5 cubic feet. With the 3rd row down, it’s a roomy 41 cubic feet.
Most 2 row SUV’s strike a balance in cargo space. Acura RDX is 26.1, Murano is 32, Audi Q5 is 29.1, and the Lexus RX350 is a pathetic 18 (it’s so bad the don’t even list it on their website).
The Sante Fe Sport has 35.4 cubic feet of cargo space, more than almost all other 2 row SUV’s (GLE350 and Lincoln MKX are larger) and only 6 cubic feet less than the full size Sante Fe with the 3rd row down - so not a huge difference.
Now, I mentioned weight was important to me because of the safety factor. The Sante Fe Sport Ultimate w/Tech Package at 4107 lbs is only 90 lbs lighter than the full size Sante Fe AWD - so again not a huge difference.
One other factor, the Sante Fe Sport is 8 inches shorter than the full size Sante Fe which isn’t a bad thing for someone living in NYC!
So to summarize, I chose the Sante Fe Sport because I didn’t need a 3rd row for kids, didn’t think there was a huge different between 41 cubic feet and 35.4 cubic feet in cargo space, wasn’t sacrificing much in the weight department, would have an 8 inch shorter car which would make it easier to park around NYC, and would save some money since the Sante Fe Sport costs 3K less.

1 Like

I would say: enjoy your new vehicle.

Thanks for sharing, it always helps anyone else in the market :thumbsup:

@santefejoe, clearly you’ve put a lot of thought and research into this. Congrats on the new car! Time to hit the open road and never look back :motorway::cd:

Glad it’s helpful. Was exactly my intention. The site was helpful to me so I wanted to contribute to it.

1 Like

Hey guys! Check my new article about calculators.
And now on the topic, I saw a good overview about Sante here: https://www.youtube.com/watch?v=-bI72x-qZrw