Any way to get out of a Hyundai single pay lease early?

Ask the Hackrs
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We have 11 months left on our '23 Ioniq 5 Limited AWD single pay lease. Two year 24k mile lease. Car has 7,800 miles. Hyundai finance says they don’t allow lease transfers and the residual is way to high to have a dealer buy it and give us some cash back. Anyone have any clever ideas how we can get out of this lease and get 11 months of our payments back (about $6,300)? The payoff is $39,736

What does Hyundai do with these cars after the lease is up? I’ve guessing auction sale price is below 30k and much less in 11 months. The crazy high residual doesn’t make any sense. Didn’t matter at the time because we had no intention of ever buying the car. Car is registered in Montana.

We are trying to get into a 3 row EV and love the R1S. The EV9 was a real disappointment.

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Then you have your answer.

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I don’t know how this works. Worth exploring

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OP has a lease. This is good if You own the car.

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@hammick
You can always roll in negative equity into a new lease or finance, but it will hurt.

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They go to bank auction. I think HMFS has some kind of insurance for that loss.

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What does the contract say about early termination? Each state has different rules for that.
You may give up the rest of the payments and return the car.

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You’re in an unfortunate position where you can’t transfer it and it has no equity. If you desperately need out you’ll have to forgo the rest of what you paid to lease it. You’re better off eating 11 months.

I had a buddy in the same situation with a Polestar 2. He still had $10k worth of lease payments left (a bit over a year left), but the car was negative by more than that. So he was better off paying the remaining lease payments and returning the car early (not always an option depending on captive though) then taking the negative equity hit. He ultimately just kept it as a 3rd car and VFS allowed him to return it 6-months early in the end.

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You cant get the payments back, you are very upside down. You signed a 2 year contract and there aren’t partial refunds, trade in equity, etc for ending early

If you want to get out you will have to be okay with walking away from the 11 months of non-usage

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Early turn-in will save you on insurance and any wear/tear costs. Though you’ll need to figure out what early termination fees HFS will charge you for.

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it was a 1pay lease so he made all the payments for the entire term already, should just be disposition fee if there isn’t excess damage and they have both keys still

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He has a choice, eat the 11 payments (prepaid) or take your luck at the Auction and he will definitely be in a worse position since it is an EV.

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I think there was a recent discussion about this for Lexus. W/ a one-pay lease, the rent charge is earned monthly, so I do think the OP would also get a small (and I mean, really small) refund for unearned rent charge?

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Thanks guys. I figured nothing could be done. Looks like I’ll have to wait to order an R1S until next summer. If it looks like politics is going to take away the 7,500 lease tax credit I’ll get it ordered sooner and we will just have three vehicles for a while.

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You can put it on Turo and try to earn enough to cover the effective remaining balance.

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Should add a disclaimer that it is against the terms of the lease. Also not sure how commercial insurance would work on a leased vehicle.

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Or worse yet, they smoke in the car and damage the seats and he’s screwed on turn in.

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Probably better to get some bids so at least you’ll know whether the negative equity would be greater than the forgone payments.

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Depending on lease contract, early terminations generally include the sum of the remaining lease payments rather than the delta between the adjusted lease balance and the residual value.

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Keep it for another year and definitely don’t put it on Turo.

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