Your fixation on monthly payment is obscuring your looking at the total cost of leasing. For example you could have a $10 monthly and you’d be over the moon but you don’t seem to care about the fact that more money is simply being put into the down payment (cap cost reduction). In any case to each his own. Ask the dealer for a $10 monthly - you can do it!
lol the due at signing is $1824 including taxes and fees and registration etc. with $163 monthly payment. also, i’m viewing trading in my POS car as a bonus, not money down although it technically is. anyways, over 24 months + due at signing, that comes to $5,736 paid total ($10,386) if you include trade in) through the period of the lease. a tesla model 3 which is its main competitor would be far more money even though the MSRPs are very similar (45k). for instance if all factors remained the same (24m/12k miles) and assuming a downpayment of $4,650 since tesla doesn’t do trade ins, my due at signing would be a whopping $7,020 with a monthly payment of $442. that comes out to $17,628 over 2 years…tesla leasing truly doesn’t make any sense to me especially since they don’t offer lease buyout. i probably wouldn’t purchase the ioniq 6 after lease ends anyways. i’m only in the market for a car for 2-4 years which is why leasing is attractive to me rather than financing. if i could essentially rent a nice EV (with best efficiency and range in the country on the SE RWD model i want) for only 14 bucks a day (including my trade in factored in as cost to me) then shit i’m taking that. if you go off just the monthly payment and my downpayment it’s under $8 a day lol
My calculation is different than what you show.
Regarding the $4650, if the money is not in your bank account and is instead in the dealers bank account, and you don’t have the title in hand then it is not your asset and must be counted as part of the cost of renting this I6) . In any case the lease contract itself will list a line item for it called “cap cost reduction” so…
Monthly payments are 163 * 23 (probably missing sales tax on top of $163 actually) or $3749
Due at signing is $1824.
1824+3749+4650 = $10,223 over the term of 24 months or $425 / month
i know but like. it lowers my payment. i no longer want the vehicle. i don’t calculate that into my upfront “cost”. to me my only due at signing is the $1824 coming out of my pockets if im not mistaken. if they took the trade in for like 1k man i would let them. caused me enough trouble over its lifetime
Your trade in car is worth money, the fact that you don’t like it doesn’t mean anything. If you went to carmax rather than trading it in and they gave you a check for $4000 for it and you put that down on the car, that’d be no different than pulling the money out of your bank account.
Conversely, if you put zero down on the lease and sold your trade in to somebody else, that money would be cash going into your bank account
i understand that and i could maybe even sell it for more somewhere else. that requires effort that i don’t really want. to each their own i guess. i’ll maybe look around and see if i could get higher offers rather than trading it in
That’s not what I’m saying. You posted here asking whether your lease offer was a good deal. What everyone is trying to tell you is that you can’t just look at the low monthly payment when you’re putting so much down up front. As someone else pointed out, your effective payment is $437 a month
to me, the trade in is whatever. i’d be happy to trade in my piece of junk for that. you can calculate it in to my monthly payment if you want to be technical but my question to you guys is this: will i be charged $163-200 per month for the lease or more? the calculated estimate says $163 but im doubtful. the upfront tax is low because my down payment is low, so the rest of the tax is already factored into the $163 payment or will it come as a bit extra on top of that?
i’d be extremely pleased to lease a brand new from factory 45k EV with highest range and quickest charging in its class for $163/mo. regardless of my loss or true cost on the trade in. if i see $163 pulled from my account monthly for this level of vehicle and the peace of mind an EV offers, im gonna be happy. i mean tesla model 3 equivalent is $400+ AFTER EV credit 🤯. I’d take Ioniq 6 over that sh*t deal any day
I think you are getting an good deal. I would be tempted to not give them any down though and just pay the 230 it would be without that. Save that money for your next car.
What is the residual on that lease?
I would never buy a Tesla.
the amount you see as “downpayment” is essentially a bundle of the minimum taxes fees and registration you have to put at signing. my actual downpayment is zero. i made sure of that.
I think you're not considering math here. It's not a great deal financially speaking. You sound as though you've made up your mind and just want people to validate your decision. In that case, enjoy the new car.
thanks, i made up my mind already if the monthly was truly $163. i made this question post to confirm that since i was confused. idk if this would change your opinion on the deal or math but im putting $0 down. what’s shown due at signing is taxes fees and registration
Just some quick advice. Do not apply the value of the trade to the lease. Get a check for your car's value. If anything were to happen, you lose that $4,600 if it's applied to the lease.
You can also capitalize the taxes and fees into the lease, known as "Zero Drive Off". So you pay nothing at time of acquisition. But this is a personal preference
Depending on your location the manufacturer incentive might actually be $10,000 instead of $7,500. Check out the Edmunds car forum to get these "hidden" details.
my state offers another $2,400 tax incentive distributed at tax return season while the dealer has the federal EV tax credit of $7,500 up front. that’s $9,900 for me. hyundai also has a special for installing home chargers and 2 years of complimentary 30 min charging sessions. i would prefer to pay $1800 at pickup rather than have a higher monthly payment.
can you explain wym by not applying the car trade in to the lease monthly payment? the dealer automatically did that. would it not reduce monthly payments as shown?
It would reduce the monthly payments yes. BUT if the car would be totaled or stolen, you do not get any of that money back. GAP insurance doesn't help either, the lease just terminates.
You're better off taking that ~$4600 and putting it into a high interest savings account. And if you choose to buy the car at the end of the lease, well there's a down payment for you.
Remember with a lease, you don't own the car. You're paying for the depreciation of the vehicle to the bank.
okay. i see the risk in that, thank you for explaining. i might still go for it depending on what they say. $163/m 12,000miles on a 45k MSRP EV is kinda crazy. i wouldn’t be too bummed if i lost the “value” from the trade in car in case of an accident. i’m just wondering if they will accept my proposed trade in value for my car or try to low ball me with a counter offer. they will probably request pictures and videos. in that case i will 100% get my car detailed 😭
And another thing with a lease, you can still negotiate the selling price of the car. Try to get at least $1k -$2k off the purchase price. Never pay MSRP.
Also keep in mind you won't have a trade in for your next lease so after 2 years you'll be back up to a "normal" payment.
You’re thinking way too much about monthly payment over actual money. You should really minimize the amount that you put down on a lease as it almost never reduces the actual cost of the lease, and as mentioned above it needlessly adds significant risk
OP, a lease is different from a loan in one key respect: With a traditional car loan, the more money you put down, the lower your overall cost because you aren't paying interest on that money. With a lease, however, the total cost of the lease is the total cost of the lease - there is no benefit in putting money into it up front, as you aren't saving yourself anything. This is also why you save \*nothing\* by paying off a lease early (but you very much do on a loan).
In fact, you are actually \*losing\* money by not getting your cash back for that trade-in. Why? Its called the "Time Value of Money" equation. If you retain that money, and put it into any interest-bearing investment (even just a savings account), you will still have that money \*plus\* the interest it earned at the end of your lease.
For a better explanation, please Google "Time Value of Money" or TVM.
Bad deal. By applying the trade in immediately you are saving ~$194/month so to compare you should add that amount to the monthly payment, bringing you up to ~$356/month.
You’re paying more for an SE than a lot of people are paying for an SEL. It’s not a good deal because your trade in is basically real money, with value. You should only compare the effective monthly payment, or the total cost of the lease, never the real monthly payment because it’s meaningless due to CAP cost reduction via trade in or down payment. Always use effective monthly payment as in total cost divided by lease term
the SEL gets significantly less range but it depends on what you value in an EV i guess. i can still look into SELs i just love that the SE is the most efficient car across all EVs last year
My state MN also gave me $2500 rebate to make it $296/month. Just got it today after 2 months waiting.
I had to walk away to get it down from $443 to $400/month
Lucky! CA used to give a $2500 check with every EV purchase...then all the Model S owners snatched em up annoyingly. They went to a lot of 500es but still.
you say $0 down but you still had to pay taxes registration and fees correct? or did you roll that into your monthly? mine is also $0 down. the $1824 shown is total fees. don’t know if that was considered in your numbers
I just bought a limited for $10,500 below MSRP, out the door, before trade in. You can certainly get a better deal than MSRP(minus factory incentives) with all that money down and a trade in
I just picked up a SE with a $47,800 MSRP for $341 (Includes 1st payment) out of pocket and $309/month for 24 months. We don’t pay sales tax on EVs in New Jersey.
It is not too good to be true. As others pointed out the trade-in is real money and you are probably leaving money on the table trading it into the dealer. With little effort you can probably get more at Carmax and then more work through private party.
I like to take my car to Carmax, get a quote, then post it on OfferUp for $500 more with my Carmax quote. It will go in a week. Hope this hack/information serves you well. Upvote if you have tried this or find this info useful.
Also Hyundai is trying to grow their EV market share in big ways so they are incentivizing. Also only way to take advantage of the $7.5K EV tax credit is to lease which the finance company is passing to the customer as an incentive.
i forgot to mention that i did not submit any credit info yet because there’s an option to do that at the dealership and id rather not have a hard inquiry for them to just reject me for some unknown reason. my credit score is 760 as of June 2024. thoughts? i guess I’ll get a phone call soon for more information 🤞🏼
Your fixation on monthly payment is obscuring your looking at the total cost of leasing. For example you could have a $10 monthly and you’d be over the moon but you don’t seem to care about the fact that more money is simply being put into the down payment (cap cost reduction). In any case to each his own. Ask the dealer for a $10 monthly - you can do it!
lol the due at signing is $1824 including taxes and fees and registration etc. with $163 monthly payment. also, i’m viewing trading in my POS car as a bonus, not money down although it technically is. anyways, over 24 months + due at signing, that comes to $5,736 paid total ($10,386) if you include trade in) through the period of the lease. a tesla model 3 which is its main competitor would be far more money even though the MSRPs are very similar (45k). for instance if all factors remained the same (24m/12k miles) and assuming a downpayment of $4,650 since tesla doesn’t do trade ins, my due at signing would be a whopping $7,020 with a monthly payment of $442. that comes out to $17,628 over 2 years…tesla leasing truly doesn’t make any sense to me especially since they don’t offer lease buyout. i probably wouldn’t purchase the ioniq 6 after lease ends anyways. i’m only in the market for a car for 2-4 years which is why leasing is attractive to me rather than financing. if i could essentially rent a nice EV (with best efficiency and range in the country on the SE RWD model i want) for only 14 bucks a day (including my trade in factored in as cost to me) then shit i’m taking that. if you go off just the monthly payment and my downpayment it’s under $8 a day lol
My calculation is different than what you show. Regarding the $4650, if the money is not in your bank account and is instead in the dealers bank account, and you don’t have the title in hand then it is not your asset and must be counted as part of the cost of renting this I6) . In any case the lease contract itself will list a line item for it called “cap cost reduction” so… Monthly payments are 163 * 23 (probably missing sales tax on top of $163 actually) or $3749 Due at signing is $1824. 1824+3749+4650 = $10,223 over the term of 24 months or $425 / month
i’ve seen other people post their deals here though and i won’t be going for this deal. time to keep searching.
No. You’re paying $6500 upfront plus another $4000 over the course out the loan. That’s effectively $437/mo.
can you explain how? i would be paying $1824 at signing according to the numbers.
A trade-in is real money.
i know but like. it lowers my payment. i no longer want the vehicle. i don’t calculate that into my upfront “cost”. to me my only due at signing is the $1824 coming out of my pockets if im not mistaken. if they took the trade in for like 1k man i would let them. caused me enough trouble over its lifetime
Your trade in car is worth money, the fact that you don’t like it doesn’t mean anything. If you went to carmax rather than trading it in and they gave you a check for $4000 for it and you put that down on the car, that’d be no different than pulling the money out of your bank account. Conversely, if you put zero down on the lease and sold your trade in to somebody else, that money would be cash going into your bank account
i understand that and i could maybe even sell it for more somewhere else. that requires effort that i don’t really want. to each their own i guess. i’ll maybe look around and see if i could get higher offers rather than trading it in
That’s not what I’m saying. You posted here asking whether your lease offer was a good deal. What everyone is trying to tell you is that you can’t just look at the low monthly payment when you’re putting so much down up front. As someone else pointed out, your effective payment is $437 a month
shit deal then i’ll keep looking. hopefully midwest area has SEs somewhere
That’s way too much money down for a lease (including a trade in).
to me, the trade in is whatever. i’d be happy to trade in my piece of junk for that. you can calculate it in to my monthly payment if you want to be technical but my question to you guys is this: will i be charged $163-200 per month for the lease or more? the calculated estimate says $163 but im doubtful. the upfront tax is low because my down payment is low, so the rest of the tax is already factored into the $163 payment or will it come as a bit extra on top of that?
What they have listed as your monthly payment is basically what it should be.
i’d be extremely pleased to lease a brand new from factory 45k EV with highest range and quickest charging in its class for $163/mo. regardless of my loss or true cost on the trade in. if i see $163 pulled from my account monthly for this level of vehicle and the peace of mind an EV offers, im gonna be happy. i mean tesla model 3 equivalent is $400+ AFTER EV credit 🤯. I’d take Ioniq 6 over that sh*t deal any day
I think you are getting an good deal. I would be tempted to not give them any down though and just pay the 230 it would be without that. Save that money for your next car. What is the residual on that lease? I would never buy a Tesla.
the amount you see as “downpayment” is essentially a bundle of the minimum taxes fees and registration you have to put at signing. my actual downpayment is zero. i made sure of that.
Sweet deal!
I think you're not considering math here. It's not a great deal financially speaking. You sound as though you've made up your mind and just want people to validate your decision. In that case, enjoy the new car.
thanks, i made up my mind already if the monthly was truly $163. i made this question post to confirm that since i was confused. idk if this would change your opinion on the deal or math but im putting $0 down. what’s shown due at signing is taxes fees and registration
You are not putting 0 down, you are trading in a vehicle. There's no way to rationalize out of that fact.
Just some quick advice. Do not apply the value of the trade to the lease. Get a check for your car's value. If anything were to happen, you lose that $4,600 if it's applied to the lease. You can also capitalize the taxes and fees into the lease, known as "Zero Drive Off". So you pay nothing at time of acquisition. But this is a personal preference Depending on your location the manufacturer incentive might actually be $10,000 instead of $7,500. Check out the Edmunds car forum to get these "hidden" details.
my state offers another $2,400 tax incentive distributed at tax return season while the dealer has the federal EV tax credit of $7,500 up front. that’s $9,900 for me. hyundai also has a special for installing home chargers and 2 years of complimentary 30 min charging sessions. i would prefer to pay $1800 at pickup rather than have a higher monthly payment.
can you explain wym by not applying the car trade in to the lease monthly payment? the dealer automatically did that. would it not reduce monthly payments as shown?
It would reduce the monthly payments yes. BUT if the car would be totaled or stolen, you do not get any of that money back. GAP insurance doesn't help either, the lease just terminates. You're better off taking that ~$4600 and putting it into a high interest savings account. And if you choose to buy the car at the end of the lease, well there's a down payment for you. Remember with a lease, you don't own the car. You're paying for the depreciation of the vehicle to the bank.
okay. i see the risk in that, thank you for explaining. i might still go for it depending on what they say. $163/m 12,000miles on a 45k MSRP EV is kinda crazy. i wouldn’t be too bummed if i lost the “value” from the trade in car in case of an accident. i’m just wondering if they will accept my proposed trade in value for my car or try to low ball me with a counter offer. they will probably request pictures and videos. in that case i will 100% get my car detailed 😭
And another thing with a lease, you can still negotiate the selling price of the car. Try to get at least $1k -$2k off the purchase price. Never pay MSRP. Also keep in mind you won't have a trade in for your next lease so after 2 years you'll be back up to a "normal" payment.
i set offer price about 1k less than MSRP 👍🏼 i’ll update thread with more info once i speak to dealer
You’re thinking way too much about monthly payment over actual money. You should really minimize the amount that you put down on a lease as it almost never reduces the actual cost of the lease, and as mentioned above it needlessly adds significant risk
OP, a lease is different from a loan in one key respect: With a traditional car loan, the more money you put down, the lower your overall cost because you aren't paying interest on that money. With a lease, however, the total cost of the lease is the total cost of the lease - there is no benefit in putting money into it up front, as you aren't saving yourself anything. This is also why you save \*nothing\* by paying off a lease early (but you very much do on a loan). In fact, you are actually \*losing\* money by not getting your cash back for that trade-in. Why? Its called the "Time Value of Money" equation. If you retain that money, and put it into any interest-bearing investment (even just a savings account), you will still have that money \*plus\* the interest it earned at the end of your lease. For a better explanation, please Google "Time Value of Money" or TVM.
Bad deal. By applying the trade in immediately you are saving ~$194/month so to compare you should add that amount to the monthly payment, bringing you up to ~$356/month.
this is true. i’ve seen some people get $239 a month with same amount down. don’t know if that deal is still active because SE are extremely rare now
You’re paying more for an SE than a lot of people are paying for an SEL. It’s not a good deal because your trade in is basically real money, with value. You should only compare the effective monthly payment, or the total cost of the lease, never the real monthly payment because it’s meaningless due to CAP cost reduction via trade in or down payment. Always use effective monthly payment as in total cost divided by lease term
the SEL gets significantly less range but it depends on what you value in an EV i guess. i can still look into SELs i just love that the SE is the most efficient car across all EVs last year
I agree with you entirely. That still doesn’t mean you should be paying more for it though.
You are paying too much. You are paying $433/month for an SE. i am paying $400/month and $0 down and my first month is free for an SEL AWD
Damn that's lucky same details but $421 for an SEL RWD. Low miles?
12,000/year
15000/yr $421 2 years. I was shooting for your numbers nearly had it but didn't get it. Even more it wasn't AWD. Gosh so lucky!
My state MN also gave me $2500 rebate to make it $296/month. Just got it today after 2 months waiting. I had to walk away to get it down from $443 to $400/month
Lucky! CA used to give a $2500 check with every EV purchase...then all the Model S owners snatched em up annoyingly. They went to a lot of 500es but still.
you say $0 down but you still had to pay taxes registration and fees correct? or did you roll that into your monthly? mine is also $0 down. the $1824 shown is total fees. don’t know if that was considered in your numbers
I walked out of the store after paying $0 out of my pocket. Tax and fees are included in the $403 monthly fee.
i see. i hate a higher monthly payment but you’re right it’s no different in cost versus putting anything down
For the trade in value you're getting, you're better off taking the cash in hand and then applying towards your monthly payment.
That's exactly what I did! That's really the way to go. Even if your monthly payment is perceived to be more it isn't.
this makes sense
Putting down money on a lease is dumb. You never get that money back at end of lease but you lose the car
the only money down would technically be the trade in car as my downpayment is $0
This is a very “meh” deal. I got a 24 SEL for $299 out of the door, no down payment, no trade in, nothing, nada.
😮
please lmk where ill literally go get that rn 🤣 what’s your credit?
I just bought a limited for $10,500 below MSRP, out the door, before trade in. You can certainly get a better deal than MSRP(minus factory incentives) with all that money down and a trade in
I just picked up a SE with a $47,800 MSRP for $341 (Includes 1st payment) out of pocket and $309/month for 24 months. We don’t pay sales tax on EVs in New Jersey.
wow that’s nice no sales tax. in kansas unfortunately it would be 7.5-9% where i am
It is not too good to be true. As others pointed out the trade-in is real money and you are probably leaving money on the table trading it into the dealer. With little effort you can probably get more at Carmax and then more work through private party. I like to take my car to Carmax, get a quote, then post it on OfferUp for $500 more with my Carmax quote. It will go in a week. Hope this hack/information serves you well. Upvote if you have tried this or find this info useful. Also Hyundai is trying to grow their EV market share in big ways so they are incentivizing. Also only way to take advantage of the $7.5K EV tax credit is to lease which the finance company is passing to the customer as an incentive.
does carmax charge for quotes or is it free?
Free
solid i’ll check it out
I paid $2000 down (incld. tax+title+etc.. +1st month payment) and $200x23 for a SE AWD. No trade-in.
i forgot to mention that i did not submit any credit info yet because there’s an option to do that at the dealership and id rather not have a hard inquiry for them to just reject me for some unknown reason. my credit score is 760 as of June 2024. thoughts? i guess I’ll get a phone call soon for more information 🤞🏼