Newbie to LH - Advice - Financing ‘21 GLS; own ‘17 Hyundai Santa Fe

Hi all - own my ‘17 Santa Fe outright, it’s our second car only drive it like 4k miles a year getting sick of it. It’s a limited ultimate, it has 60k miles

Primary car is a Mercedes GLS ‘21, has 40k miles on it, probably driving 6-7k miles a year. Paying $1100 a month and have just over two years left on this car, financing it.

originally, was going to just stay with the Mercedes and Santa Fe - have the Mercedes paid off in two years, turn that into the secondary vehicle and then get a new primary vehicle in two years.

we have three kids - 12, 9, 4 - still using a car seat for youngest.

I always thought just buy a 1-2 year old car, get it paid off and rinse and repeat. I’m learning more about leases and some of the EV specials now. We could do a lease, we could do nothing, we could do ev or plug in hybrid. I keep going in circles in my head on this. I’m starting to realize that buying even a 1-2 year old car may not make more financial sense than a lease considering residual value, specials and money factor. And some of the PND here on LH are interesting

the car I was most tempted by was the new ‘26 ix but effective monthly cost on that is $800 plus the $1100 on the Mercedes - spending $1900 a month seems bananas to me for how little we’re both actually driving.

Then my wife asked me if we should just get out of the Mercedes now, it probably has $5-10k of residual, then could parlay that $1100 payment plus potentially the value of the Santa Fe, probably worth like $8k - into two new cars like ‘26 Hyundai Palisades. I was reluctant to do so because the next two years we should earn likely another $5k+ per year in residual that in two more years the GLS will like be worth at least $20k, seems like the wrong time to get out of it.

On the Hyundai, it’s probably depreciating $2-3k a year - so kind of indirectly paying $200-250 plus some maintenance - still could likely justify $400 a month and it would likely be similar to current state

We live in Allegheny County.

if anyone has advice or recommendations on what to do it’s all appreciated!!!

  • should we sell Hyundai?
  • Should we get out of Mercedes Finance early?
  • If we do either - what car // deal would you recommend? Could def get 1 or possibly 2 ev or plug in cars or go all gas? I think one car needs three rows and the other car if it’s it’s a 5 seater it needs to be very comfortable my kids are a mess and a second three row car could make sense.
  • Have some flexibility financially to make a good deal or capitalize on a good moment.

Thx again!!

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You’re likely underwater on the GLS, if you have just 2 years left on the finance prob just better riding that out. If you’re tied to selling, sell the Santa Fe. Get quotes from 3rd parties such as carmax/carvana/driveway.com and sell to the highest bidder. If interested in the 26 Palisades, feel free to drop me a text. 516-550-3707

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Make sure you look at insurance cost too on the new car(s)…gonna be a lot more than that ‘17.

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You both think it’s best to just hold onto the Santa Fe longer? And stay in the GLS longer till it’s paid off?

I got a $41k number from Carvana for the GLS. I owe less than this.

any idea how much the car will further depreciate in the next 12 and 24 months? Seems smartest to hold onto the GLS?

Does it also have an extended warranty, or do we live dangerously?

I thought I was looking at a Ford Fusion when I pulled the recall list, crikey.

I realize the Santa Fe is the one you’re bored with, but with $27k in remaining payments and the fact you aren’t upside down, I’d consider something that won’t have a GLS-sized out of warranty repair before it’s paid off.

The GLS is a 2021, I bought it has a CPO in Feb of 2023. I got an extra year on it - I should be fully covered with warranty, etc till Feb ‘27 (one year before the finance payment is paid off). If I hold it for ~another year or so, I can probably get another $8-10k in equity and then maybe I should I sell it before that extended warranty is up? You think this car is a ticking time bomb??

the Santa Fe got a $12k offer on carmax … really thinking about going for the 2025 Wagoneer S Limited Electric. Seems like if I can pull this off before Tuesday, should be able to get effective monthly payment to something in the mid $300s for that size of car, brand new seems pretty exciting compared to continuing to hold onto the Santa Fe with more maintenance and depreciation… the jeep wagoner wasn’t my top choice but the deal is crazy compelling anything else I should consider?

again thoughts are welcome!!

really appreciate it everyone!!

Thoughts on either of these cars for potentially replacing the Santa Fe:

Or this one, not sure what needs to qualify for this conquest special …

The Wagoneer S EV is a 2-row SUV. Isn’t the 2017 Santa Fe three rows?

And mid 300s is nothing compelling for a basic EV. Plenty of better deals have been achieved whenever inventory piled up.

What is the interest rate on the GLS? You are gaining equity at the expense of a large car payment. Figure roughly 10% per year in depreciation at this point. It might take a bigger drop when the CPO warranty expires. Buying a 1-2 year old CPO vehicle is probably a better idea than leasing the equivalent model new unless you can find a very aggressive deal on the new vehicle.

Tax credits run out on Tuesday. What else should I consider? That’s an effectively monthly cost (that is including upfront costs)

yes, it’s two rows but it looks like a comfortable two row vs some of the other two row cars out there. We would still have GLS for at least another year which is three rows.

happy to consider other options and all thoughts are appreciative.

If worried about effective costs you may be +200/mo insurance wise on this vs the old car.

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The GLS is at 5.5% interest. Owe $30k. Carvana, Offering $41k.

If I hold for one more year, seems like car should be worth $36-38k. And a year later, I’d owe like $19k on the car. I hear you on selling before extended warranty is up. Def good call. I like the GLS still, no issues

Appreciate you letting me know that I’ll still likely be better buying another 1-2 year old CPO than leasing a new one, appreciate the heads up there when it does come time to make a move on the GLS.

Wow, really? My yearly insurance costs could go up by $2400 a year to switch from a 2017 Santa Fe to a 2025 Wagoneer S electric? Didn’t realize it was this dramatic.

Go online and get a quote from your current provider…EV insurance is high.

Also keep in mind that Mercedes-Benz CPO Warranty is transferable to private buyers, but it will NOT transfer to dealerships or vehicle resellers.

If you sell it to a Carvana or Carmax - it is not transferable?

what is the best place to sell privately if I get there?

I’ll talk to my insurance company - appreciate heads up

Nope. Autotrader, Cars.com, etc.

Just went on KBB and it looks like if I sell privately, could likely get +$2-4k more than what carmax is offering and I’m not sure if KBB realizes that there more than a year of extended warranty left.

How hard is it to sell privately? Is it a ton of work? Will people really pony up for numbers this large privately - like $43-45k?? It’s great to know about the transferability of the warranty though.

KBB data is almost meaningless. Go look and see what people are selling similar cars for on the sites I gave you and take a grand or two off for negotiation. And yes it is work and risk to sell privately.

Carmax, etc are real cash offers…KBB private etc are estimates that aren’t real cash offers.

Best luck you will have is to shop to MB dealers that may want your car if in great shape as they will value the CPO and may be able to extend.

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GM products like Equinox Blazer Lyric. Check Signed Deals & Tips for benchmarks and tips.

I don’t want to discourage you too much but you should also realize the reality of how many people are panicking about Tuesday. If inventory is depleted locally you will either face overpaying (don’t) or shipping (depends) or waiting for the new equilibrium to appear when inventory piles up again.

Great point. Thank you.

Do you think 10/1 - onward - we’ll get back to these deals?