Hello everyone, I’ve got a Hyundai Santa Fe that I got a killer deal on 2 years ago and it’s due to be turned in later this month. I already know I don’t want to buy it, but I’m trying to understand what my options or better negotiating tactics might be if I want a new one.
Specifically, does the dealer have more latitude in terms of taking back the lease, or trade value. The car is in great shape, as far as pre inspection it has one very light depression in the seat from a car seat for 2 years. The tires still pass, and the outside is beautiful. However, it is over on mileage by 4,000.
As far as trade value, NADA and KBB have it in the 25500-27500 range, and Carvana and Vroom both offered me 26k, with a lease buyout of 28k.
Assuming I want another Hyundai, what do you feel is my best bet for owing the least or losing the least amount of money when I turn it in? (Assume turning it in cold is $800 mileage, $100 wear and tear, and $350 disposition for a total of $1250)
You can always try to trade it at a dealer, but realistically, if Carvana/Vroom didn’t offer you enough for buyout, the dealer most likely wouldn’t either. A dealer bases his offer on wholesale value, or what he could get the same car at auction for. OTOH, they may offer you buyout price, but then lower the dealer discount on the new car to compensate. In theory, that would leave you 0 out of pocket, but you’d lose some discount on your new car.
If you want another Hyundai, they’ll waive the dispo fee. You might be able to call HMF and ask for a goodwill adjustment on the mileage/wear, but that’s no guarantee either. From their perspective, you signed the contract for x amount of miles and to return the car in an agreed upon condition. They are entitled to the fees if they wanted to enforce them.
1 Like
On the phone with them now to see what can be done, I figured it can’t hurt to ask!
@mp11477 - thanks for the advice. I’m going to take a moment here and CHAMPION Hyundai motor finance. I just called them and they were AMAZING.
- They granted me a free 10 day extension on my lease, no fees, no additional payment, nothing.
- They are willing to extend my lease at the current payment for up to 6 more months with no additional fees AND they will give me 1000 miles per month, which can give me time to decrease my overage if I drive less, and I can do it on a month by month basis. Super helpful.
- They will wave the disposition and the first $600 in wear and tear on my car if I get a new Hyundai.
They can’t do anything about the mileage, but did tell me that the dealership can negotiate that into the lease as negative equity OR can agree to cover the cost on it as part of the deal on the new car.
All in all, they are making it SUPER EASY to work with them and lease or buy another vehicle.
Just remember, the dealer isn’t going to eat the charge…they’ll roll it into the new lease and you’ll pay the mileage one way or another.
With that said, looks like HMF is at least throwing you a bone. Nice.
I figured…I would either need to negotiate $800 less on the new car to compensate, or roll the $800 in knowing it has to get paid. I could also just pay HMF the $800 and not have to pay the interest on it over 36 months.
With that said, my best bet might be to extend month by month until Christmas (we do very little driving this time of year), and see if we can catch up 1000-1500 miles on the lease, and get a great deal during the holidays.
I appreciate your help and suggestion though!
If you do negatiate with the dealer don’t mention the old car until the end. Get your best offer and then see if they can go lower to close the deal
Unless a Hyundai dealer can buy your current car for less than the $28K payoff, I don’t see how trading it in is going to help your cause. You’d be better off paying for the miles and calling it a day. I suspect paying for the miles separately will be the best, so you don’t inflate the price of the new car and pay tax & interest on that, but if you’re not in CA I’m not familiar with the rules in your state.
Do you want another Hyundai, anyway? They’re only saving you $450 if you get another one. Extending your current lease might help, but will you have to renew the registration as well? Will you have any other expenses, like maintenance, brakes, tires? I assume you can extend the lease without being obligated to lease another Hyundai, right?
North Carolina is a VERY lease friendly state. I only pay 3% on the monthly payment of the lease…so rolling it in is infinitely better than paying $800 up front.
My wife would really like a new sonata. They have a 2018.5 Limited 2t that she loves and they have some good leasing incentives this month.
If I extend the lease, I will definitely need to pay the registration, though in NC (again, lease friendly) they will reimburse me a prorated portion of the annual vehicle tax that goes along with the reg. if I “sell” the car before the year is up.
In the end, leasing another hyundai saves me $450 and any wear or tear they feel it has up to $900, lets me roll $800 into 36 payments of about $25 and potentially puts me in a spot to get the car my wife wants. Basically now I just need to negotiate the car down $800 more than I originally had on my spreadsheet if I want to come out even.
If they’ll come down $800, they would have done it regardless of the mileage penalty. You’re still paying for the $800 either way.
1 Like
Fair enough. I’ll just to have to consider it a loss on my part, though compared to how much the additional mileage was if i went to a 15k lease, i think i still came out ahead.
Probably close to a toss up. Your payments probably would have been been $20-23/mo higher with 15K miles.
If a manufacturer offers a lease pull ahead, you would probably be allowed all your original miles earlier.
