So I have looked at all the various models and makes in this market segment and I’m set on getting the Genesis GV70. I’ve noticed that Genesis does not get talked about much on this website, and I assume it’s because their lease deals are pretty awful or nonexistent.
Looking for advice on what I should do and whether or not this is a good lease deal in this current high-interest rate environment.
Here is what one dealer provided to me:
Genesis GV70 2.5T Advanced Trim
MSRP: $53,210
Selling Price: $53,210
Aftermarkets: $1,785 (the etching on the doors/windows for theft the 3M tape lining on the door edges, stuff apparently they can’t take off the bill)
Doc Fee: $85
Acquisition Fee: $750
License fee: $50
Cap Fees: $33
Cap Taxes: $358
Total Gross Cap Cost: $55,028
Lease Deal: 36 months / 10k miles (prepaid cents/mile: $0.20)
Cash Down / Due at Signing: $5000
Total Rebates: $1000
Amt Applied Upfront (not sure what this means): $1710
Total Cap Reduction: $4289
Net Cap Cost: $51096
Residual: 58% ($30,861)
Money Factor: 0.00255
Monthly Base: $771
So, straight away, this seems like a lousy deal.
1% rule: $5000 (down payment) / 36 months = $138.88 + $771 (monthly base) = $909 / $53210 (MSRP) = 1.7%
1.7% I assume would tell me to NOT lease this car. Side question: for the 1% rule, should I have removed $1k from the Down Payment amount of $5k since there were $1k in rebates applied for this deal? And do you also include the $750 acquisition fee in the calculation? I’ve always wondered this.
So based on the 1% rule, it would appear that I should not lease this car.
I put the above numbers into the Leasehackr calculator and I get a Leasehackr score of 5 years (which I know is also not good). Side question: I put the numbers exactly, but the pre-tax monthly payment is $730 on the calculator versus the dealer provided $771. Is there a reason these are off?
Here is the saved lease hackr calculator numbers: Lease Hackr Calculator Score
So I’m trying to decide what to do here. Given the MF is roughly 6.12% on this lease and the rate if I finance it is around 5.5%. I’m thinking to just buy this car in cash. Interest rates in a high yield savings account are around 4.75% right now (Betterment). I could put in the stock market but also risky at the moment, so given the high interest rates on the finance option and the poor lease deal, if I have the cash, would the best decision be to just buy this car outright in cash given the current market conditions?
And my last question…while I was at the Genesis dealer they did say that they had some 2023 GV70 service models (the ones used as day loaners for when they service the new cars). The cars looked basically new and only had around 2k miles on them. They were being priced at $47k for the sports prestige (which has an MSRP of $58k). That’s $11k discount on a brand new car that has less than 2k miles on it. I didn’t even know these existed and were an option to buy. A brand new car will look like these cars after my 1st month of driving it, so I’m thinking the smartest move would be to buy one of these. What are the cons of buying these?
I’m almost there, need some help nudging me to a decision here from the wise and experienced community here.
Thanks!