What are you basing your 8% pre-incentive discount target on? Why is your mf .00104 when you said edmunds said it was higher above?
I entered the dealers MSRP of $31,355 and CAP COST of $28,731 and the Lease Calculator came up with 8.37% off MSRP.
My current 2019 lease payment is $220/mo.
Oh, gotcha. You weren’t putting together a target deal, you were just inputting info from the dealer offer. Keep in mind when looking at their offer that they’re showing that value with a marked up mf. They’re showing a large discount and then making it back up on the mf, so it isn’t a real discount.
What’s the story with the mf?
I based my MF on current new car loan rates at my credit union in Madison. I assume that’s not the right approach?
Having current, accurate information for residual value, money factor, and incentives is important in understanding your deal. As such, going directly to a source that has access to that data from the captive banks is your best option. The forums at Edmunds are where we go to get that information, as they have direct access to it from the captive banks. You’ll want to post in the model specific thread for the vehicle you’re interested in and request the most current numbers for your zip code. It is often easiest to find that thread by searching Google for “Edmunds lease” followed by the model of vehicle you’re interested in.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
- Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
No, it’s not. Lessors or captives have “buy rates” that you get from the forum at Edmunds. Dealers are allowed and frequently will mark up the mf on lease deals as they did with yours. It. Is a source of additional profit for them.
From $220 to ??
What’s the new approximate lease payment a month with the $6,000 in equity put towards the new lease?
Approximately $300.
I re-ran the calculator and used the MF and RV from Edmunds.
That’s basically identical to the dealer offer.
So and extra $80 a month. The LH calculator showing it has a pretty bad deal though considering all that equity going in and it being an actual payment of over $450+ a month.
That is pretty significant.
I have gotten a similar number to that on the accord hybrid touring which is a $38k car. I still won’t make the deal considering I cannot get the sale price down to where I want it
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Perhaps we could also throw in that financing rates have absolutely no relevancy to what a money factor could/couldn’t be for a lease?
Also, many posts later…here we sit with things I had called out earlier in the thread. 
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Are you “married” to the Kona??? If not, check out some other vehicles and put that $6K into some investments…but sometimes you just want what you want and no one can sway you otherwise.
You could be driving a ‘21 Wrangler 4Xe Sahara for less than that $4xx payment and still have the $6K to show-just sayin’ 
Finance the vehicle then. Hyundai is offering 1.9% on the '22 model right now. This lease simply doesn’t make sense.
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So a marked up Money Factor on top of an already high base Money Factor. That is already mitigating a good amount of that discount.
Though you are getting a great value for your current lease on buyout, the new deal is not great. I would take a look at the following before contacting more dealers.
- Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
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