No Wonder Why the Genesis Leases Aren't As Good As They Used to Be

Just returned my 2015 Hyundai Genesis at the lease end. It was a great car for 3 years and almost 45k miles. My lease end RV was almost exactly $29k. I have just checked the inventory at the dealer where I returned my car and it is listed for $27k after all the reconditioning they have done. I am pretty sure that they would be happy to sell the car for $26k or even $25k. Assuming that the dealer still makes money at those prices, Hyundai must be taking a significant hit (at least $4k or $5k would be my guess). When I was leasing the car new I was able to negotiate a 23% discount (significant manufacturer incentives were at play back in March 2015) so that probably hurt Hyundaiā€™s margins significantly and now they are taking another hit 3 years later. Looking at the Genesis RVs today it looks like they have learned their lesson but that also probably means that cheap Genesis leases wonā€™t return anytime soonā€¦

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I was nervous that might be the case, but thanks for sharing your data point. I was thinking the residuals might be a bit better post-rebrand, but it may take some time before we see improvement. They really should have rebranded before releasing the Genesis. Or at least not given the company the exact same name as the car. Theyā€™re making the same mistake with KIA and the Stinger.

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But this is common to a lot of cars. My infinti q50 lease residual is higher than they sell for and the car had large discounting at the beginning.

I suspect they artificially inflated those residuals in the beginning along with good incentives to get these things out on the road to spur interest. Or, maybe they just completely missed the mark on their residual predictions.

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Iā€™m hoping they have good incentives for the g70 to get them on the road.

Sedan sales overall are really strugglingā€¦and itā€™s not just Genesis

Same here, G70 addresses all the issues I had with my G80 (formerly Hyundai Genesis). It is more nimble (lighter with shorter wheelbase) and comes with a turbo engine. If it has a quicker steering rack with a little bit of feel, I will definitely be interested in leasing oneā€¦

I returned my Genesis in March this year, Its window sticker price was $53,000 and I got it for $44,000. My RV was $31,000 for a 3 yr old Genesis with 36,000 miles.
The KBB was saying it was worth approx $23,500.
I would have bought it to own at that price, but definitely not for the 31,000.
Great car, awesome interior and featuresā€¦ but shame they drop in value so quick. I am sure if Hyundai had known that, they would have had lower RVā€™s to start with meaning higher lease costs.
Im guessing mine will end up at Auction somewhere.

I just purchased a 2015 CPO AWD ulimate here in the Atlanta area and they are selling very well. CPO dealers are not moving much on price.

I was thinking about purchasing mine too after lease ends when I got my lease back in January. Mine was 24% discount MSRP ($47,440) and with the low RV ($22,797) so thought maybe a purchase will be worth it. But sounds like it will not hold itā€™s value.

Ditto. The wife thinks the G80 is too big, so the G70 would be a great option to replace it. We love the Genesis, but there have been some really minor electrical things that would turn me off from buying one over leasing.

This is exactly the situation Genesis owners are finding themselves in. I test drove a very nice 2016 Genesis at my local Lexus for like $26k sticker with around 25k miles. The guy that leased it didnā€™t want to pay double what his old lease was so he leased a new Lexus instead. I liked the car but it didnā€™t feel like it was put together as well as the Lexus, though the interior looked nicer than an ES. Also itā€™s just a little too big for me. Sweet deal for $26k or more likely $24k to whoever buys it though.

Similar situation here. Would like to keep the Genesis 2015, paying $360 for the 3.8 rwd with Technology package, MRSP over 43k. But the selling price those on the lots here is at or lower than the RV. With the tax added and extended warranty necessity, I am at $28k which is too much.
Note that approx. 2 months before the lease expiry you can call HMF and ask for up to 6 months lease extension on month to month basis. I will do this to bring me to the deals at the end of 2018.

I am at 26,000 mi and the tread on the Michelin Primacy MXM is almost gone.

Since I live in Texas, I have already paid full tax on the vehicle with the lease. Does that mean if I want to buyout the vehicle, my price will be RV ($22,797) + Purchase option fee of ($300)?

@darksky, why do you need extended warranty, isnā€™t the base warranty for Genesis already 10 years/100,000 miles for powertrain?

If you did a traditional lease (unlike for example BMW Owners Choice), you will pay sales tax on the purchase price (again).

Thereā€™s a ton of stuff in a modern car that isnā€™t powertrain.

Interesting, I just found this article:

ā€œTexas state laws consider the sale of a vehicle by a lease company at lease-end to be a separate sale, although a special one, and the lessee is not charged sales tax again if the correct amount of tax was paid originally at the beginning of the leaseā€

If I donā€™t have to pay sales tax again, then buying out after lease sounds more reasonable.

Update: http://www.bimmerfest.com/forums/archive/index.php/t-911983.html
Sounds like sales tax is applied again on buyout. Ughā€¦

Update: http://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=70

ā€œ(b) If, at the termination of a lease, a motor vehicle is sold by the lessor to the lessee and the lease contained an ā€œoption to purchaseā€ at less than fair market value or a ā€œmust purchaseā€ clause or if the vehicle is sold to the lessee at less than fair market value, the amount subject to the motor vehicle sales and use tax will be the total consideration paid the lessor by the lessee under the agreement, since the agreement will be considered a sale rather than a lease agreement. ā€œTotal considerationā€ means the amount paid or to be paid for a motor vehicle and all accessories attached to it at the time of the sale; total consideration does not include separately stated finance charges, carrying charges, service charges, or interest.ā€

Hyundai is doing itself and its customers a huge favor by not making these good leases. Hopefully it will get the message and abandon Genesis. Cheap Asian junk that passes for luxury is already being made by Volvo, we donā€™t need another competitor.

Wow, thatā€™s a bit rough. More competition the better, besides, they are pretty sweet cars.

My Hyundai Genesis had way more toys and gizmos yet been far more reliable than my BMW 428, which I traded it in for the Genesis at the time. It definitely was not ā€œcheap Asian junkā€ and I am excited to try out the new G70.

You can safely ignore Vhooloo most of the time, particularly when it comes to anything Asian. Isnā€™t he the one who called Jaguar ownership a bunch of ā€˜turban wearing curry munchersā€™?

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