First time car experience ever after sharing with family. I rushed into a deal without doing enough research and preparation for a pushy sales manager that wouldn’t to budge on selling price. It was the only one on the lot and was in high demand with 2 test drives same day before me and 2 more scheduled after. In hindsight, i’m feeling a bit uneasy about it all but trying to stay positive and take it as a lesson learned.
I ended up purchasing wear/tear warranty for the lease which brought total to $413/mo.
Year, Make, Model, and Trim: 2022 Hyundai Tucson Hybrid BLUE
MSRP: $29050
Selling Price: $33184
Monthly Payment: $413.27
Drive-Off Amount: $3500
Months: 36
Annual Mileage: 12,000
Residual: 17,944.62
Incentives: $1,750
Region: Bay Area, CA
Would love insight into how much I ‘lost’ on this deal and I’m curious what would be best financial decision going forward with this? It looks like I’ll end up paying 2/3 of the car by end of 3 years, so should I just buy it out? $20K total is a lot I will have put into this vehicle.
Any tips as well for the next time would be appreciated too. Thanks all!
It’s a brand new model. It wasn’t gonna lease well no matter what, but you’re paying the additional premium for low supply and high demand.
Edited to add: you appear to have paid a markup of $2-3k over MSRP in addition to add ons. Dunno what the MF is but may make sense to buy out and refinance if Hyundai doesn’t charge you unearned rent to buy out.
Enjoy your new car and stop back next time before you head to the dealer.
do your research - it’s the 2nd biggest financial decision
don’t negotiate at the dealership (just test drive)
know the numbers on the car you plan to lease
if the numbers don’t match, put down your pen and gtfo
General advice:
you leased a hybrid, which likely leases worse than the gas model. You have to do the math to see if there is a gas roi savings (unlikely in a lease)
you should spend the next three years educating yourself, so when you hand the keys to this mistake back, you can score a better lease deal. I wouldn’t buy this out unless you plan to drive it until the warranty is up (in which case, yes buy out the lease now with a loan and pay it off)
I’m no expert but I’d say you’re paying premium price for a Tucson. Yes, it’s a supply issue but I’d be grossly sad to throw away $510 monthly on a Tucson. Look at what brokers are offering for luxury vehicles and you’ll see what you could’ve gotten for $510 or less. The lower vehicles would’ve probably cost you $$ in gas but still less than $510.
Best financial decision is to monitor your equity on the car from month to month and once positive, sell it. Otherwise, I’d say, enjoy the vehicle, don’t beat yourself up.
Unfortunately you are paying quite a high price but it is a brand new car now you know for next time. There is a huge demand car used cars so maybe try selling to carvana or vroom.
Thanks for the constructive feedback and advice everyone. Re-read my original post and saw some spelling errors, missing info. Woops!
Regarding the wear and tear warranty that I added, it seemed like a good idea to add for $895/36 months. I imagine the car will get its share of dings driving around in the Bay area and may incur some other issues but does that typically end up costing less than $895?
Does it cost money to get offers on the car? West_Indian, can you share some math for the selling scenario you laid out? Thank you!
