Looking at another 2 years before things get back to normal.
By then the equity margin will go down as well soā¦
I hear you. I think Iāll be in your shoes in about a year.
The market control is shifting toward companies. Weāll wait patiently until it will switch back to be controlled by consumers.
Interest rates + normal sell price (for finance)
I work in semi field and we are sold out for 22 already. Huge increase in sales due to work at home electronics demand. Also EVs requiring significantly more semis on a per car basis. Shortage will not end soon as industry supply ramp will take a few years.
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The automakers have been relying on 10-15 year old chip technology in which semiconductor manufacturers are unwilling to make or continue investments. Intelās CEO is on record as saying he can bang out all the modern silicon the car industry could needā¦ But the automaker designs werenāt engineered for any of this stuff.
Curious - when you extended your lease, did your payment change?
My lease is up on my 2020 NX. Dealer says if I buy it out my payments will go up $150 (from $440) and Iād be paying for 5 years! Essentially, they are trying to sell at the inflated MSRP, not my $24k but out per the lease agreement.
If I extend, Iām told my payments will increase to $40-$50 per month but the dealer or Lexus finance can explain why the payment is increasing.
Are you in a state that taxes up front?
If youāre in NY or NJ itās the additional taxes. These are states that charge the total tax upfront, and the states gotta get their piece on the extension, at 10% ish tax that would be how it is.
They have got to be charging some stupid fees and bumping your loan rate. That does not sound like a good rate - get a loan quote from DCU, your local credit union, and your bank (multiple inquiries within a short period do not affect your credit score as much).
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Iām in NJ. Car was leased in PA.
So a tax upfront state. The increase in your monthly on the lease extension is to cover tax on the continued payments.
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No It was the same when we extend but we are in CA.
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CA is a monthly tax state, so it shouldnāt increase the payment.
I just renewed my Hyundai Ioniq EV lease for 6 months in California. Payments remain the same as during the āregular term.ā Further, with each payment my RV (potential purchase price if I decide to buy it) goes down. Part of the payment is attributed to taxes, part to the monthly rent/use fee and the remaining goes towards reducing the RV. This is what I was told by HMFUSA guys on the phone, will wait for first month payment to credit and see the official statement to check that the RV did indeed go down.
For Hyundai, you can do the lease extension all on-line directly with HMFUSA and do not need to go to a dealer.
Bottomline - Captive made a bunch on the interest. Perhaps a few percent over market?
My monthly payment for the 2019 Hyundai Ioniq EV (Base model) is $125 per month (I made a large down payment at the time of signing the lease). Of this $13 is tax. The RV is expected to decrease about $50 with each payment (per the numbers quoted over the phone by HMFUSA) and so about $60 per month goes to rent/interest/use charge - whatever you want to call it.
I am not sure if I want to buy out the vehicle and keep it (or sell it) and still debating whether to try and get a new lease in the current market. In the meantime, I felt this arrangement was good for another 6 months while I figure things out.