Hi all, newbie here with leasing in NE Ohio and I think I’m getting screwed by the dealer. Hyundai has the following deal on their website for the 2025 Limited:
The $249 for nitrogen filled tires is a bunch of BS, I know that part. I wanted $1907 down + registration, tax, title, license, processing or documentation fees, insurance and any emission charge etc. After studying here, I know know that I should probably pay $0.
Where in the h*ll did they get $4,898.95 down? I asked them for a detailed breakdown and they sent me the following:
I don’t understand the taxes and how they are calculating it either, what can I do here, if anything? I don’t understand either the gross cap cost or cap cost reduction.
Looking on here I learned about one-pay lease. I’d be interested in that if I don’t get screwed. How do I go about getting one of those?
I used the lease calculator and came up with this, I used a MF from Edmunds that I thought was about average for the Kona. Do you think this is a good deal? This is 0 money down and it’s only like 50 bucks more than the stupid dealer was trying to get me to pay with almost 5k down.
Without diving into the calculator particulars, youre still showing no discount at all. Gotta work out what an appropriate target discount in these before anything.
I see, you’re talking discount off MSRP. Looking around at other dealers I think I could knock off $685. There is one dealer in MI that has a 2024 for $2k off but they don’t lease out of state.
Never try to decipher a dealer’s worksheet or chase after a dealer. Otherwise, you’re allowing them to control the deal. They are often wrong and omit a lot of relevant detail such as money factor, monthly base payment, monthly contractual payment, fees not itemized, etc. These are particularly important for Ohio leases. I live in North Ridgeville and know how Ohio leases are done. You need to rely on credible outside sources (e.g., LH marketplace and signed deals, Edmunds, etc.). Do your own research and establish a reasonable selling price in your market. Don’t rely on dealer website selling prices as they are negotiable. Be sure to get a copy of the window sticker.
Use the dealer WS to capture only relevant hard data (bolded below) that should be vetted such as doc fees (250 in Ohio), money factor, gov fees, etc. Make sure the residual matches the term and annual mileage requirement. Create your own target deal, including all relevant data, summarized below…
MSRP
42960.00
Dealer Discount (Just a guess- you need to determine this)
3200.00
Sell Price
39760.00
Acquisition Fee
650.00
Base Payment Tax
500.25
Gross Cap
40910.25
CCR (calculated by me}
6282.93
Adj. Cap
34627.32
Term
24
MF (Edmunds)
.00183
Residual (68%) (Edmunds)
29212.80
Rebates/Incentives (Edmunds)
7500.00
Sales Tax Rate
6.50%
In Ohio, Tax is levied on the sum of the base payments which must exclude capped non-taxable fees. The only capped non-taxable fee in this example is the 500.25 payment tax. Deduct this tax from the adj. cap to get 34127.07 and use it to compute the base payment as follows…
Base Pay = .00183 x (34127.06 + 29212.80) + (34127.07 - 29212.80)/24
= 320.67
Bottom line: Zero drive-off followed by 23 monthly payments of 342.43 each.
Next, craft a lease proposal (example below) and email to dealer. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement BEFORE you go to the dealer and sign. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
Great question! The 7500 does not have to be used entirely as the CCR. It can be allocated between the CCR and the lease inception fees so that there is zero due at signing. Note that the sum of the lease inception fees is 7500.00 and so, we’re using the 7500 to pay for the lease inception fees which includes the CCR.
The CCR formula is unwieldly and somewhat of a pain… sorry for that… I’ll assume all blame since I developed this monster. The CCR formula below assumes that sales tax is levied on the sum of the base payments and is capitalized. CCR tax is not capped and, therefore, is paid at lease inception. The goal is DAS = 0. Here’s the formula…
I considered it, I was able to test out an Ioniq 5, 6 and Kona all for a week and I found that the Kona is best for my needs. It’s really efficient too.
That’s fair. I only mentioned it because we just got one. I considered the Kona EV for a split second, but after having one for a month while my Tesla was getting repaired there was a lot I didn’t like. Torque steer being a big one.
