Using their formula, I would be paying ~36k for the car (their quote, 29.9k, plus my 6k that I put down).
I just want to know that I am not overpaying before buying out the car, especially with regard to how the down payment factors into everything. I saw somewhere that for one-pay leases, the buyout price starts below the residual and gradually increases until lease end. Shouldn’t this be a similar case since I put roughly half down? I think I would expect to pay about 32-33k for the car, including the money (6k) I’ve already spent.
Thank you so much to anyone who can help me understand this. Let me know if I need to provide any additional information.
That’s about right. However, you’ll need a lease amortization schedule to compte the sum of the remaining depreciation payments. Or, there is a formula that can be used that’s a bit complex and so I’ll spare yoiu of that.
That is so wide left, I don’t even know where to begin. Reps are clueless. I swear, some of them feel compelled to respond and so they make things up absent the truth.
Read your lease agreement that deals with early termination buyouts. You’ll discover that Hyundai computes buyouts as follows…
1st Compute the adjusted lease balance (ALB)…
The ALB uses the Excel PV (present value function) where the eff rate is the annual constant yield rate (or annual actuarial rate) referenced in your contract. The Excel RATE function is used to compute the annual effective rate AKA annual constant yield rate or annual effective rate.
2nd. Next compute your buyout…
Buyout = (ALB + any POF) x (1 + t) + other applicable fees/taxes
POF = purchase option fee (see contract)
t = sales tax rate
Won’t be exactly equal, but the buyout before tax will be pretty close (exception being if you get one of those MB leases with the 4% buyout penalty)
running this gives 5% as the yearly rate and 29471 as the adj lease balance. No sales tax in NJ and $300 purchase option fee gives the amount I was quoted
When I run the numbers for 0 down payment with an equivalent increase in monthly payment, I’m getting roughly $36000 adj lease balance. So I think I am seeing how all the math lines up for how the down payment is accounted for. Thank you!
