I thought I understood leases

Ask the Hackrs
1

Not sure this is the correct forum to ask this:

  1. Looking for an EV with lowest monthly cost = monthly + (down + tax/fee)/term.
  2. I have leased many times in the past 30 years, so I do know about residuals and MF. If you take out taxes and fees etc., and made the MF nothing, I think a lease price should boil down to selling price - residual divided by term.
  3. Last lease I got was during pandemic. Was a KIA, I got the ‘factory’ lease program, a 3yr lease. I wanted a 4 year, but the monthly went up! They said the factory deal was specific and had better whatever (I guess they didn’t want to tell me MF, residuals, etc.). If the car has the same depreciation per year, say it was woth 90% at year 1, 80% at year 2, and 70% at year 3, monthly should stay the same. But it was pandemic time and everyone was getting raped by the dealers.
  4. I am now looking at getting an EV, either Ioniq or Prologue, both have ‘factory’ leases. The Ioniq only has a 2 yr ‘factory’ program with a large down, I would like a 3 year lease. CAN I GET THE MONTHLY TO BE THE SAME OR BETTER FOR SOMETHING OTHER THAN THE ‘FACTORY’ OFFERING. INO, when the dealer says his hands are tied, is it BS, or can it be negotiated? (yes, everything is negotiable, but Ioniqs are selling well).
2

  1. No, the residual doesn’t go down by even amounts, so there are lots of examples where a 24 month lease is better than 36 month, or a 48 is worse than 36. Pay the $10 to be a super supporter, fool around with the calculator, and you’ll be able to see exactly what the effect is on the car you want.

  2. Ignore the “factor offer” or the lease deals the car companies advertise. You can almost always do better if you know what you’re doing.

  3. Look at what the brokers in your area are offering. They might be able to save you far more than their fee.

3

The best thing you can do with factory or dealer offers is forget they exist. They are completely irrelevant to the discussion.

Factory offers are usually very easy to significantly beat BUT people also tend to not actually read what a factort offer really is.

4

You only have a basic understanding of leases which is still much better than most people. You can usually do better than the factory leases, and you don’t have to put any money down. Find a broker that will ship you an Ioniq from out of state if you can’t find one in FL.

5

Thanks for the replies. I had thought the dealer couldn’t easily do better than factory, but learning…

I am trying to find a broker, in fact I put up a post here, but having trouble finding one in MA/RI for these specific cars. Would be more than happy to pay for their expertise.

I have played with lease calculators, I think the bigger issue is if I find better numbers is to get a dealer to sell me a hot selling car that he can sell to someone else for more.

6

The dealer discount is in addition to any factory incentives (which take many forms, like rebates, subsidized APRs/money factors, inflated residuals, etc.), and each bucket of potential savings to the consumer is set by the respective party.

The EV market is oversaturated with choices and inventory relative to demand, so you aren’t going to have to wait in line or get into a bidding war to drive home in an Ioniq or a Prologue.

7

Not sure if you saw, but your previous post was moved to the correct thread and then you got a response

8

yes, thanks i did see it moved, and i did reach out. His page showed a great 13 month price, but I really want 36 months.

9

Try to avoid putting any money down on leases, especially ones as good as on the vehicles you are looking at.

I don’t see EV leases getting worse in the future unless they throttle production, so you’ll probably do well getting 1-2 shorter leases than one 36 month lease.

Well I guess if your state does like VA where it taxes the entire vehicle cost then yes a single longer lease is better.

10

With incoming President’s views on EVs, don’t think the 7500 tax credit will make it past 2025, so longer lease is better for EV. At least that is my take on it.

11

Have you considered buying the ionic?

12

I am thinking the same thing. I bet the EV manufacturers will adjust their prices downward like Tesla did, leaving existing EV owners with even worse residuals. That is why you lease an EV. Hopefully nobody did or is planning an immediate buyout of their EV before we see how this shakes out.

13

What is the cost you’re trying to obtain?

A quick search on car gurus and I’m seeing multiple options in MA/RI/NH/ME where you’d be looking at sub $300/month for 36 months and sub $200/month for 24 months with just taxes and fees due at signing.
*Assuming minimum 10% discount off MSRP and car on lot over 180 days for extra $1k inventory coupon

14

The only problem with this is that Tesla is at production qty already and can reduce cost AND make a profit. Not so sure anyone else can.

15

I don’t even see how to get lease pricing on cargurus.com ?!? I only see financing option.

16

It doesn’t.

Pay the $10/15 for the month to have full access to the calculator here. Then you’ll be able to plug in the numbers and see for yourself. HMF has a big lease cash allowance on 2024 Ioniq 5

17

And model Y leases are mediocre, at best. Not sure there’s much benefit to lessees if MSRP is reduced.

18

But Musk has his ear.

19

But the best lease structure for this month (and I think last month) on Ioniq 5s are for 13-mos. So you’ll have to decide if you to pay more for what you “really want” or if you will be flexible (and ultimately get a much better deal).

As far as getting a dealer to agree to a better deal when they can sell the car to someone else for more $, when you make an offer, you should inform the dealership that you are ready to pick the car up the same day. You (and anyone else looking for a great deal) are only appealing insofar as you take up as little of their time and energy as possible.

20

And he’ll probably advocate for policy that leaves him the last one standing