Hello! First time posting on the forum and looking for some guidance. I’ve been aggressively scouring the forums to help in my lease negotiations and would love to get some insight. I have to admit - I’ve been leasing my whole life and always went with the approach of “I need my monthly payment to be x.” I’m so glad I found this forum to help take control of the process.
Situation (in Atlanta, GA):
My current 2019 Hyundai Tucson lease ends in April. I only have 16k miles on it and based on current values, have equity in the lease ($18,758 residual - current trade-in values are appx. $26-28k).
Looking to continue leasing and want to secure a 2022 Palisade (Calligraphy or Limited)
After test driving the vehicle, I sent an email asking for very specific details and for their best numbers.
I received the below proposal from the dealership but have some questions:
They are pulling a residual at 56%. In my research, signed deals from 2020 were coming in at 60-61%. I know time has passed but have the residual on these vehicles dropped to 56%?
Is there anything on here that I should be questioning or can continue to negotiate on? Knowing that fees and taxes are basically locked, I’m not sure what VCG equates to (and google isn’t showing anything). Already planning on asking for the ceramic protection to be removed.
I know these vehicles are in high demand. Should I assume the price of the vehicle won’t be adjusted (as listed in this proposal) or do I keep pushing for an adjusted price? As added detail - the sticker for this vehicle shows $46,690 MSRP + $225 (cargo package) + $575 (floor mats/cargo cover/first aid kit/rear bumper aplique/wheel locks) + $1225 (freight and handling) = Total price of $48,715.
They haven’t run my credit yet - until that happens should I assume they won’t share MF? I did a pre-approval check through Capital One and if I was purchasing this vehicle I’d be coming in at 2.45-2.89 APR (depending on the trim - limited vs palisade)
Is there anything I need to be concerned about when they detail trade allowance on its own vs translating it as a down payment?
I’d recommend you stop talking to this dealer and walk away. Right now, you’re sitting at $800/mo on this. The palisade is a great vehicle, but leasing one at $800/mo is nuts. You’d be far better off just purchasing one.
Ok what am I missing because i’m seeing it at $541-$561/mo? Or is that not the actual monthly payment totals and they are omitting numbers in that total?
As this stands, the finance manager is going to Hawaii. This dealer has padded this MSRP deal with 3.5k in upsell(Ceramic, VCG, Electronic Title Fee) , take @mllcb42’s advice here.
I guess my follow-up question is if I bounce from this dealership and move to another, what should I be looking for with other dealerships to make these numbers make sense? Is it just simply getting them to adjust the MSRP and increase the residual? Hoping to get some learnings that I can apply to my next dealership outreach to walk out with a deal that makes sense.
Historically leasing has made sense for most makes / models with a few exceptions. Over the last 18 months we have added many more makes / models into the category of: If you have to have it, just buy it. Mostly b/c leasing no longer makes financial sense due to a combination of lower rv’s, higher mf’s, less incentives.
We look at the TCO ( Total Cost of Ownership ) when evaluating deals, not just the monthly b/c you happen to be giving them $9,500 in equity which they are then turning around and adding $3500 in Hard Adds to make back the $1000 are overpaying for your trade.
As for MF / RV info, head over to Edmunds and request it for the exact term length and mileage you are looking for to double check the next dealer and be armed with this info before beginning any conversation.
Dealer does not set the residual, the manufacturer does. Pallisades are popular, I haven’t priced one out or see the current market for them but it’s not pretty. Others on this forum can help you. Frankly, I’d find a well-reviewed broker on here to facilitate this for you. It will save you thousands.
I took a very limited search for you, but if you really want this car, in my estimation, a straight MSRP deal with no add on’s would be regarded as relatively to very strong for the climate we are in.
So if you are set with this dealer and this car and we can’t convince you to not lease a Pallisade. You would counter them with remove Ceramic, Electronic Titling Fee, and VCG. Also if you lease most of us believe you should never put money down for many reasons (read the wiki). Your payment would be in the low 700’s and all your equity would be in your pocket.
Also, get multiple offers on your trade if possible and you should view it as two separate deals.
If you are interested in financing believe they have tier 1 financing for 1.9% over 60 months. That would be ~700 a month if you rolled the positive equity in.
As someone else who previously leased a palisade, I was able to do some magic at the time and get a huge discount. Even then, leasing barely made sense. With the current programs, you’re better off purchasing.
