Deal Check: Ioniq 5 Limited AWD 36/15 - new to leasing

I’m confused why the deal I put into the calculator isn’t aligning with what the dealer quoted. Am I missing something, or is their doc not truthful? Thanks!

36 month - 15k miles
MSRP: $60,395
Discount: $1,000
Residual: 50%
MF: .0025
Incentives: $16,750

Calc gives me $565, they are showing me $630-640

See image for details I may have missed.

I didn’t exact it, but here you go

What you input doesn’t look much different than what I input in the calc I linked in the OP. Am I missing something explaining the gap between my calc and the image?

Your incentives are likely taxed. If you make that change, the calcs effective monthly basically lines up with the deal sheet

It’s a hard pass either way.

What’s your target deal?

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There’s no registration in your LH calculator. And that’s a terrible pre-incentive discount.

Ah, got it, thanks. So they need to be in taxed and then check the “zero drive off” box. That does take it more in line.

max_g - like I said, new to leasing and still wrapping my head around it. My understanding was that the EV’s don’t have a lot of margin. What makes it a hard pass? They are willing to negotiate; he’s off today, but planning to go back tomorrow. I was shooting for under $600

I’ve also just learned about the potential for immediate buyout, which I’m wrapping my head around. Lots to digest here!

Here is what’s going on… screw the calculator. Let’s do the calcs manually and learn something…

MSRP ………………………… 60395.00
Dealer Discount………… 1000.00 (weak at best)
Sell Price………………….. 59395.00
Doc Fee………………….. 251.05
Fees………………………… 681.35 (acquisition fee, LTR?) not accounted for in WS
Gross Cap………………. 60327.40
CCR………………………… 15653.70
Adjusted Cap……………. 44673.55
RV (50% x MSRP)………. 30197.50
Term……………………….. 36
MF…………………………… .00250
Sales Tax Rate………….. 7.00%
Lease Cash…………….. 16750.00
Customer Cash………. 630.00
Total Cash/Rebates…… 17380.00

Base Payment = .00250 x (44673.55 + 30197.50) +(44673.55 - 30197.50)/ 36
= 589.29
Monthly Payment = 589.29 x 1.07
= 630.54

Lease Inception Fees
1st Payment………………………… 630.54
CCR Tax……………………………. 1095.76 = 7% x 15653.70
Customer Cash………………… 630.00
TOTAL……………………………… 2356.30
Cash Credit…………………….. 1726.30 = 17380.00 – 15653.70
DAS………………………………. 630.00

Bottom line: DAS = 630.00 followed by 35 monthly payments of 630.54 each.

Why are you paying 630 out of pocket? Geez, you have 16750 of lease cash. If you total the car or if it is stolen, you will lose some or all of the 630. Also, a car is an expense, not an investment.

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I don’t know what the 630 “customer cash” is - I didn’t request that nor did we discuss it.

Appreciate you breaking down all the numbers there for me. It was very unclear what everything is, especially the “upfront charges,” which you’ve identified as tax.

So it seems that everyone’s issue with the deal is simply the $ off MSRP? I’ll do more research into what’s feasible here. They only have one vehicle in the trim I’m interested in, but they also have no idea if this customer cash is going away on Friday (part of which is tax credit which will remain through September).

Here is the LH Calc

There is no way to put the total cash/rebate split between the CCR and cash credit into the LH Calc without producing misleading/inaccurate output. This is why I don’t like online calculators preferring, instead, to use my own calculator. You can learn a lot about leasing by building your own calculator which leads me to post…

Building a Motor Vehicle Lease- Data Collection and Calculations.pdf (403.6 KB)

that you might find helpful.

It’s cash that you’re paying upfront out of pocket.

This is why you cannot allow the dealer to control the deal. Build your own lease proposal (see pdf).

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And don’t forget, OP, that your local dealer will likely be the worst deal you can find since they know you’re close by (and thus think of yourself as limited to that option).

You’re better off to, as @delta737h says, build your own deal and then send it to every dealer in the US that has a car in your preferred spec. Just remember to factor in the car shipping (or flights/hotels if you’re going to fly out to drive it home) in your cost calculations.

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That’s a terrible target.

Post a calc link with $4,000 off MSRP.

Thank you all. I have been reading the docs and putting together my own spreadsheet to help understand the calcs. It’s definitely a bit confusing still as some of them seem to be circular. But I’m still digesting. I’m sure I’ll have more questions, but appreciate the insight so far.

Sounds like it’ll be tough to get a car by tomorrow as I digest :confused: Thought I knew more than I did! Hopefully the August lease cash is the same or better.

Hire a broker if you need a car.

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3 posts were merged into an existing topic: Off-Topic Landfill 6

No. But it’s a good question. You are paying the sell price that is supported by credits (rebates). The rebates can come from a variety of sources such as the manufacturer, Costco, Amex, etc. The sell price is negotiable. You need to research sell prices in your local market as well as the LH marketplace and LH signed deals.

Rebates are usually treated in one of two ways…

(1) Use the entire rebate as a Cap Cost Reduction (CCR). (2) Allocate a portion of the rebate to cover lease inception fees with any remaining balance used as a CCR (i.e., down payment).

CAUTION… dealers will often combine their own discount with rebates to make it seem that customers are getting a huge discount. Often times, the dealer discount is extremely small (like 2% of the MSRP) especially when there are large rebates like 10K or so. Always separate the dealer discount from the rebates.

It’s not. You pay exactly what you said… * Bottom line: DAS = 630.00 followed by 35 monthly payments of 630.54 each. In other words, you pay all your lease inception fees upfront followed by your monthly payments. You do not pay the RV.

Yup. Read leasing 101 as well as view online YouTube videos. Also, read the pdf I posed in a previous post.

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Where does this get factored in? Is it paid up front usually and optionally rolled in? Trying to figure out how to plug it in to a calc.

(^Note that hackr11 above is not me - seemed like some info from my post is mixed into your answers there)

It’s paid upfront. See my post above and below

I think @hackr11 ws using your info as an example.

If you don’t wanna go through the learning and let a broker do it, I do out of state deals based on CA can ship nationwide for Hyundai

Got it. The language gets a bit confusing in Customer Cash vs DAS. I didn’t realize most of these $0 customer cash still have a DAS component. That’s helpful context.