I’m currently in the market for a new vehicle and am looking to lease a new SUV. The vehicle I had in mind is a 2022 Hyundai Santa Fe Calligraphy trim (FWD) with an MSRP of $42,340. I always lease vehicles so I’m familiar with the process and the various factors that go into determining a lease payment. I always do my research ahead of time and before visiting the dealership I went onto the Edmunds Forum and got the money factor and residual value for the vehicle. I test drove the vehicle and decided I wanted to move forward with discussing #s and that’s where I ran into a road block. First off, the dealer was not willing to budge on the price, they would not take any off of the MSRP. I refuse to pay MSRP. Second, the money factor they were using was way higher than what I got from Edmunds. Now I know they have the ability to mark up the buy rate and when I called them out on it, they denied they were and said they have no control over that. But if the Edmunds info is accurate than I know that is a lie! Edmunds gave me 2.4% vs. 4.5% what the dealer was trying to charge. My questions:
Is the info (MF, RV) that Edmunds puts out pretty accurate?
Could residual value % differ at different dealerships? I noticed they were using 61% and another dealer quoted 62%
Are they required to share a document showing the buy rate MF? How do you respond when they tell you they aren’t marking it up and Edmunds info is inaccurate.
The whole process of getting a new car is miserable when dealing with these dealerships! I don’t want to get ripped off and spend hours sitting at the dealership.
For starters, if you are getting an MSRP deal at the moment, that’s not necessarily BAD. A lot of dealers are charging markup due to inventory shortages. Reach out to multiple dealers to get price quotes but it’s possible that MSRP is the best you might be able to do.
Edmunds is usually very accurate. Just make sure that you have the correct figures for the make, model, trim and drivetrain you are looking for, as well as your zip code. All of those can be variables.
Residual should not vary. What you are suggesting seems to be a mileage discrepancy. One dealer may have quoted 12k and another may have quoted 10k. The wild card could be a third party bank or credit union lease but those are not common with Hyundai.
The dealer is under no obligation to share a sheet showing the buy rate, or give you the buy rate. You have every right to insist on a deal at buy rate and only sign somewhere that will give it to you. The middle ground might be to accept a markup in exchange for a dealer discount that gets you to the payment you are looking for.
What a silly hill to die on. OTOH you could, for instance, get something more expensive with less features like a GLC or X3 and sooth yourself to sleep with the comfort of having gotten a “discount.”
What made you choose the car as a lease candidate in the first place?
Most cars do not lease well. They do not have the programs (RV, MF and incentives) to be good candidates for lease-hacking, regardless of what dealer discount you can negotiate. This is truer now than it has ever been. Which means you cannot start your search with a particular car or cars in mind, and then find a way to make them lease well.
It will be like pushing a boulder uphill while pulling teeth, and you’ll still probably have a bad deal in the end. You need to start your search by filtering only the vehicles that are leasing well right now and offer good value per dollar.
Check out the “Share a Deal” and “Marketplace” sections of LH forums to decide what’s leasing well and pick a vehicle that is already proven to offer good value.
Remember, there are no magic wands that can save a deal from poor programs (RV, MF, and incentives) and/or poor discounts.
Typically a 1% rv difference means that you’re being quoted for a different amount of annual miles, but it could also be that you’re looking at different trims or that they’re using a different bank (which could be the reason behind the differening mf).
They have no requirement to give you anything about buy rate. They are required to disclose if they mark up the mf as a result of your credit, but that’s it.
Thanks for your response! This particular dealer would not budge on giving any discount off of the MSRP and they were not willing to admit they were marking up the money factor. The money factor I got from Edmunds on the exact trim, zip code, etc. was 0.0001 vs. the .00189 that the dealer quoted. That is quite a bit of difference and not a markup that I’m willing to accept considering my credit score is high 800s. I think I just need to move on and maybe will have better luck negotiating some place else.
Florida can be a tough market for shenanigans and high fees. Shop around or possibly reach out to @Bacons_C.C . I believe they offer Florida Hyundai deals if you are having a hard time.
I understand. It’s definitely not a good deal in my opinion so I’m just moving on from it. Fortunately, I have another vehicle to use while I continue to search and I don’t have any pressure to get a new vehicle. It’s important for me to feel like I’m getting a good deal.
I just feel like they need to come down some off the MSRP. They seemed more willing to discount the price if I would finance which I’m not interested in doing. I can’t stomach a $650-$670/mo. payment on a Hyundai.
