Trading in Hyundai Lease and Buying Used EV With Tax Rebate

Ask the Hackrs Used Cars
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1

Hi all,
I’m looking to trade in my Hyundai Ioniq PHEV SEL with 13,530 miles and buy the same model listed at $22,880 from my local dealer but with 34,046 miles using the point-of-sale 30%/$4000 used EV rebate. The dealer applied for the rebate program yesterday so I’m not sure when they will get approved, but the sales person said they’ll keep me updated.

My current lease is $148.99/mo for 10k/yr and comes due this March. My current buyout quote is $17,146.62. What offer should I come into the dealership with? I’m way under mileage and this replacement car has 20,516 more miles than mine.

Thanks!

2

Why not try and extend the lease another 6 months or so?!?

You didn’t say what the dealer price is for the 34K mile car… will you be financing or cash purchase?

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3

Oops, the dealer price for the used car is $22,880, but I figure that’s very negotiable, unless it’s still a seller’s market for PHEV’s? I’m looking to pay cash but if there’s incentives for financing I’m open to it.

4

And your buyout is $17k (+4k) is $21k, so a nobrainer, buyout yours instead of buying a higher mileage used

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5

Can I buy out my own used PHEV for the rebate (really a transferred tax credit)? I know Hyundai Motor Finance owned it technically, but not sure if it qualifies. I was hoping to negotiate a better deal with the higher mileage car. The IRS says “Not be the original owner”

6

The consensus is NO, due to your name remaining on the title.
You must meet 2 requirements specifically

  • The dealer must be involved
  • The name must not be the same person who put it into service.
7

Compare apples 2 apples ( If the car you own is exactly the same as the one dealer has, I would opt to keeping the existing one due to the low mileage & I would buyout directly from the finance company to save on dealer fees & other charges.

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8

Yeah but I don’t mind the higher miles, and I think the dealer fees would amount to less than the $4000 rebate?

9

Remember it’s PHEV, miles will matter no matter what! when you are ready to trade in down the road in 2-3 years or if the vehicle is a total loss the value will be directly proportional to the miles

10

PHEV’s are still in demand, so probably won’t get much of a discount, and why go through the hustle when you already have a car for less than that higher mileage car even with the $4K rebate, no brainer to just buy out your car :+1: a lot easier-don’t be too greedy :laughing:

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11

So the rebate offers no real benefit here. You’ll pay more for an unknown car with double the miles.

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12

That’s if I were to buy their $22,880 price but that’s why I’m asking for help to see what a fair price would be considering I’m trading in under mileage.

13

A quick search on CarEdge show avg of $21k for all Ioniqs with less than 40k Miles.

So 20-21 k for that car then. Keep yours.

14

A lot of times from what I’ve seen you get no extra equity for being under miles but always get dinged if you try to trade in with extra miles:)

I don’t know why you so want to get that $4k rebate when your lease can be extended up to 6 months and keep paying down the buyout (I think Hyundai is still doing that opposite to Nissan) and buy it then. Buy out the car you have because your buyout price is less, fewer miles, and you know that car rather than trying to waste time negotiating with the dealership for some unknown car with far more miles.

you are trying to chase $4k rebate while getting yourself into far more riskier situation.

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15

I’m not sure why you would get dinged for turning in a car with more value. Anyway, here’s my napkin math that makes me want to consider doing this.

13,350 mile car 34,046 mile car
$19,998 KBB CPO $18,667 KBB CPO
Buyout $17,146.62 Listed $22,880
$15,815.62 KBB CPO, adjusted for positive equity on lease
$11,815.62 after $4000 rebate

So my buyout goes from $17,146.62 to $11,815.62. Am I missing something?

16

KBB is not a real number. It’s a guess.

Go on cargurus and see what it’s listing for.

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17

:100: % [Sleep on it and compare the Risks]

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18

How do you get from 22k to 15? Are you thinking you have $7,000 equity?

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19

I ignored their list price and used KBB CPO, presupposing that would be a reasonable price to negotiate down to.

For instance, here’s one in NY with 26,521 miles for $19,998.

20

Yeah, I’m pretty sure dealership will ignore your KBB CPO price​:joy::+1:

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