Hyundai Sonatas have some good lease programs going on right now. These are the numbers. The interest rates are really low (0.24% on the GLS) and the residuals are respectable.
2011 Hyundai Sonata SE 36-month | 15k miles | residual 55% | .00050 base money factor
2011 Hyundai Sonata GLS 36-month | 15k miles | residual 55% | .00010 base money factor
2011 Hyundai Sonata Limited 36-month | 15k miles | residual 56% | .00050 base money factor
Lease numbers for a 2011 Hyundai GLS with auto transmission, 12k miles per year for 3 years, MSRP 20915 will be as follows
MSRP: 20915 Selling price: 19500 (this is what you negotiate with the dealer) Shouldn't be hard to get this price Money Factor :0.0001 (equivalent to an interest rate of 0.24%) Residual: 57% Bank Fee: $600 (This is rolled into your lease payment) Monthly payment = $228 + sales tax rate for your state Driveoff : First months payment + DMV fee + Misc fees (not to exceed $50) - so depending on your state dmv fees, the max total driveoff should be around $500 - $600 for states like CA that have a high DMV fee. This is essentially a zero down lease.
If you currently own/lease a Hyundai there is additional $500 loyalty cash which will drop your monthly payment down to $214
Leasing is good for some people. For me, 12,000 miles per year would be a constant source of anxiety. I currently drive less than that right now, but only because my commute is less than 8 miles each way. A job change could easily up that to 40+ miles each way.
Also, note the "+tax" in the OP. Most states will probably charge sales tax on the monthly lease payments. In California, that's currently around 9% on top of the $228/month. While it's true that you pay also sales tax on the full price of the car when purchasing, it's important to remember the additional amount when comparing monthly payments. All dealers will quote monthly payments including taxes when you are purchasing, but they may conveniently omit that amount when quoting lease payments.
More likely, you'd stay at the $228 and have the $6000 trade in a "in-store credit." It's about 26 months worth of payments. See if you could give them another $2,000 for a prepaid lease.
So I look at this and say essentially I could be as having a new car for 3 years for only 2,000 bucks... of course I lose my value of my current elantra which I assume would only be worth 3000-4000 in 3 years.
Do you think any of the dealerships will actually do this for me?
your calculations are a bit off Depreciation fee = ( $13,600 - $11,922 ) / 36 = $46.61 Finance Fee: ($13,600 + $11,922) * .0001 = $2.50 Total cost per month = $49.04
And yes any dealer would have zero problems doing this. the way to negotiate a lease is to negotiate the selling price and negotiate the buy rate for the money factor and the bank fee. The dealer cant markup the residual, but he can markup the money factor and bank fee. So as long as you negotiate these 3 things youre fine. i always call around, ask for the fleet sales manager, find a car that you like and negotiate these terms.
That said on a lease, id strongly recommend against putting any money down. There is hardly any upside to doing so. Your effective payment hardly goes down but you leave yourself open to one big risk - that risk is that if your car gets totaled you lose the down payment you put down, gap insurance will cover the balance you owe on the car.
In your case by putting $6K down - your total out of pocket for the lease is $7766 over three years. ($49.04*36 + 6000 = $7766)
If instead, you took that 6k for your trade and put it in a bank and make monthly payments from it you would be better off. If you made the full monthly payment with zero down, your total out of pocket on the lease will be $7787 (= $216.3 * 36 ). So you only saved $21 by putting $6k down but took a big risk (if your car got totaled)
Most people get coerced into putting money down on a lease, or they think by putting money down they are saving money - in reality there is very little reason to do so. I have leased dozens of cars and have never made any cap cost reduction. Any lease can be negotiated to a zero down lease. When negotiating a lease, you should negotiate three terms - the selling price, the money factor and the bank (acquisition fee) while making sure any additional fees like doc fee etc are reasonable ($50 is optimal but never more than $100)
My personal feeling on leases, deal or not is this: Dealerships I treat as never to be trusted. They hone their selling and shady dealing skills every day. Some may not deserve my distrust, but I treat them this way regardless. Leases are confusing beasts in general, but even if I understood them 100% and felt like they were the best deal, for the simple reason that I have to turn in the car at the end of the lease I will not lease.
When I buy a car, I visit the dealership once. When I lease I visit them twice. Once to pickup and be subjected to sales tactics, and once to tun in and pray that the 'normal wear and tear' or mileage is in order and I am not put in a position of having to buy the car at the agreed upon screw me price.
I don't like having the time factor hanging over my head either. Maybe it would be good if the car was garbage and I was looking forward to expiration of the lease. Most likely though, it will be a grumpy day because I have deal with getting rid of the lease car and maybe getting screwed and then subjecting myself to the car buying process again and maybe getting screwed.
The only people that won with leases were the ones that had Suburbans and turned them in off lease when you couldn't give away an SUV because the gas prices were $4.25 a gallon.
I am also one willing to spend the time and effort to sell my car to someone at a fair price rather than take it in the colon on a trade in. I have never and may never do a vehicle trade in. I am just not that lazy, inconvenienced, in a hurry, or whatever other reason people justify taking a huge bone in the cornhole by trading their vehicle instead of selling it outright.
Cars are most people's 2nd largest investment. Take your time, understand the process, research cars, buy consumer reports car issue, figure out exactly what you want down to the trim level and deal with several dealerships. Lowest price wins, play them off each other and be willing to make a decision based on your research and budget. Don't ever go to a dealership uninformed. Tell the salesman nothing of your situation, how much you want to spend a month, how your credit is, if you have a trade, nothing. They will use all of this against you. Always deal in the 'out the door price' This is the only number that is comparable across dealerships. They can tell you it is below invoice price and dealer fees all day long and the out the door price will be more than a competing dealership because of other BS they hide in there.
StNick said: So I look at this and say essentially I could be as having a new car for 3 years for only 2,000 bucks... of course I lose my value of my current elantra which I assume would only be worth 3000-4000 in 3 years.
you'd be crazy, just drive the Elantra into the ground. If you bought new it has 10y/100K warranty, after that sell it for what you can get if its giving trouble and you'll have made out well.
I am also one willing to spend the time and effort to sell my car to someone at a fair price rather than take it in the colon on a trade in. I have never and may never do a vehicle trade in. I am just not that lazy, inconvenienced, in a hurry, or whatever other reason people justify taking a huge bone in the cornhole by trading their vehicle instead of selling it outright.
btw there is no compulsion to trade in your previous car when you lease another or for that matter when you buy another. Those are two separate transactions. The option to sell your previous car on your own is still there even when you lease
Morro said: Just FYI, new Sonata Turbo and and Sonata Hybrid are just around the corner (coming out Fall 2010 and before the end of the year).If done right, the Hybrid should be flying out of the lots...this is one beautifully designed car. It looks like a million bucks.
laidbacklarkin said: Morro said: Just FYI, new Sonata Turbo and and Sonata Hybrid are just around the corner (coming out Fall 2010 and before the end of the year).If done right, the Hybrid should be flying out of the lots...this is one beautifully designed car. It looks like a million bucks.
Meh, its an acquired taste. From some angles things look a bit off
Morro
Member
posted: Jul. 29, 2010 @ 5:17p
2011 Hybrid will have a new look, not the same as 2011 gas model. Hybrid does not look right to me but I haven't seen it live yet. The photos are ugly.
i am renting a 2011 sonata while i look for a new car in my new city - so far the sonata has beaten every car i have tested - the camry doesn't even come close.
however i did leases in my younger days back in NYC and just found them to be problems - that price sure is attractive tho!
polishdreamer said: Yeah, drive a base Sonota and a base Camry and tell me you want a Camry. You're so lost, a white puppy in a snowstorm is giving you directions.
I've done just that.
The Camry has a much quieter interior, a much more smooth ride any road and a much quieter motor.
The Sonata has better handling (though far from great) and a better looking interior IMO.
The cars will appeal to different people, but if someone wants a quiet, relaxing, smooth riding vehicle, the Camry is still at the top of this class.
I test drove a Sonata 2.0T yesterday and loved it. I didn't bother to go in for lease rates but came across this thread, I wonder if I can get a turbo for the same rate.
arribasn said: StNick said: So I look at this and say essentially I could be as having a new car for 3 years for only 2,000 bucks... of course I lose my value of my current elantra which I assume would only be worth 3000-4000 in 3 years.
you'd be crazy, just drive the Elantra into the ground. If you bought new it has 10y/100K warranty, after that sell it for what you can get if its giving trouble and you'll have made out well.
I have to agree, we bought our 2000 Elantra as a former rental in 2001 for 8900.00, coincidentally we've put zero in repairs into it... Only now are we thinking we might have to replace it in the next year or three... it's still worth at least 3 grand... best 5900.00 I've ever spent for 9 years worth of a great car... couldn't be happier
Morro said: 2011 Hybrid will have a new look, not the same as 2011 gas model. Hybrid does not look right to me but I haven't seen it live yet. The photos are ugly.
test drove hybrid it looks beautiful... traditional looks better though...
Do you think any of the dealerships will actually do this for me?
your calculations are a bit off Depreciation fee = ( $13,600 - $11,922 ) / 36 = $46.61 Finance Fee: ($13,600 + $11,922) * .0001 = $2.50 Total cost per month = $49.04
And yes any dealer would have zero problems doing this. the way to negotiate a lease is to negotiate the selling price and negotiate the buy rate for the money factor and the bank fee. The dealer cant markup the residual, but he can markup the money factor and bank fee. So as long as you negotiate these 3 things youre fine. i always call around, ask for the fleet sales manager, find a car that you like and negotiate these terms.
That said on a lease, id strongly recommend against putting any money down. There is hardly any upside to doing so. Your effective payment hardly goes down but you leave yourself open to one big risk - that risk is that if your car gets totaled you lose the down payment you put down, gap insurance will cover the balance you owe on the car.
In your case by putting $6K down - your total out of pocket for the lease is $7766 over three years. ($49.04*36 + 6000 = $7766)
If instead, you took that 6k for your trade and put it in a bank and make monthly payments from it you would be better off. If you made the full monthly payment with zero down, your total out of pocket on the lease will be $7787 (= $216.3 * 36 ). So you only saved $21 by putting $6k down but took a big risk (if your car got totaled)
Most people get coerced into putting money down on a lease, or they think by putting money down they are saving money - in reality there is very little reason to do so. I have leased dozens of cars and have never made any cap cost reduction. Any lease can be negotiated to a zero down lease. When negotiating a lease, you should negotiate three terms - the selling price, the money factor and the bank (acquisition fee) while making sure any additional fees like doc fee etc are reasonable ($50 is optimal but never more than $100)
There is the matter of sales tax credit already paid on the $6000 trade-in
Using that $6,000 trade if he is in an 8% tax would result in a tax savings on each 36 month pmt
using your numbers
trade in car $49.04 * 8% *36 = $1906.68 vs take cash from trade $216.30 * 8% * 36 = $8409.74
Use the $6k down payment to pay your $8409.74 total months pmts leaves you ultimately paying $2409.74
Your peace of mind knowing that if you total your car you will not lose your initial $6 k is $2409.74 - $1906.68 = $503.06
I'm in a rental car every weekend Jan-Mar and got to say the Hyundai Sonata has been the BEST car I've ever rented. From exterior looks to interior features it topped my list and I've been in every type of car from Ford Focus, PT Cruiser, Chevy Aveo, Impala, Pontiac G6, Chargers, Mustangs, etc...). I'd buy one in a heartbeat right now IF they had a lifetime warranty but considering we own a Kia Sorento going on 100,000 miles and the only issue has been replacing headlight bulbs every 6 months I'd buy another Kia vehicle too (that comes with a LT warranty). My Dodge Durango at 80,000 miles had 4 new transmissions, torque converters, entire A/C system replaced, and blew out window regulator motors constantly.
BTW the Sonata drives very nicely. It has a very soft suspension and the interior is elegant and has everything conveniently located within easy arms reach (not like a not of vehicles where you have to lean forward to turn the damn volume up on the radio).
roadman
Senior Member
posted: Jan. 21, 2011 @ 5:10a
bad311 said: I'm in a rental car every weekend Jan-Mar and got to say the Hyundai Sonata has been the BEST car I've ever rented. From exterior looks to interior features it topped my list and I've been in every type of car from Ford Focus, PT Cruiser, Chevy Aveo, Impala, Pontiac G6, Chargers, Mustangs, etc...). I'd buy one in a heartbeat right now IF they had a lifetime warranty but considering we own a Kia Sorento going on 100,000 miles and the only issue has been replacing headlight bulbs every 6 months I'd buy another Kia vehicle too (that comes with a LT warranty). My Dodge Durango at 80,000 miles had 4 new transmissions, torque converters, entire A/C system replaced, and blew out window regulator motors constantly.
BTW the Sonata drives very nicely. It has a very soft suspension and the interior is elegant and has everything conveniently located within easy arms reach (not like a not of vehicles where you have to lean forward to turn the damn volume up on the radio).
Be careful on those non-Mfr Lifetime Warranty Sales gimmicks. Read the fine print, things like "all services must be performed at this dealership" , NON-transferable or the warranty is void. Also its likely only the engine and tranny is covered no AC, no window regulators. Where they get you is all oil changes, tune ups and tranny services have to be done by them so in that 100k you ended up spending $2k in dealership services for a LT warranty
But if you want a LT warranty on ANY car ( yes even a Dodge Durango if they have one) here is a place that will give you one on ANY car even a used one 2007 or newer
gkao said: jasonvt said: We just picked up a 2011 Sonata 2.0T Limited. MSRP was 27950. We got it for 23388 + 599 admin fee + TTL. Very nice car for the money!
That's an amazing deal. What city and dealership did you go to?
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