Enjoy! It seems like you made a good for you choice.
Looking at new (used) vehicles
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Originally Posted By: hattaresguy
That seems like a better buy than a 100k mile Escape for $10k.
Yeah, for sure. They (specifically the Hyundai corporate guy) gave us a 67% residual instead of the normal 60%, plus we got a fair trade on the Vibe considering the AC wasn't working and they didn't know what it was (I wasn't going to tell them it was the compressor and the dryer is in the condenser so that should be replaced too).
The wife really likes the car. If we decide to buy it at the end of the lease we'll still owe 67%. However, it will be worth about 60%ish. But I've read on Edmunds and other places that often the leasing company will take a lower offer than the residual instead of taking a bath on the car taking it to auction, often close to or equal to the trade-in value. So we'll probably either just end the lease, having paid 33% instead of the normal 40%, or buy it for a reduced value. Or we'll buy it then trade it in right away for a different vehicle (things like any mileage penalties and any conquest cash or whatnot would play a role in doing this or not; should be able to just transfer the title to the dealer and avoid sales tax). Ahhh... decisions. But that is several years away. For now I think we made a good choice.
That seems like a better buy than a 100k mile Escape for $10k.
Yeah, for sure. They (specifically the Hyundai corporate guy) gave us a 67% residual instead of the normal 60%, plus we got a fair trade on the Vibe considering the AC wasn't working and they didn't know what it was (I wasn't going to tell them it was the compressor and the dryer is in the condenser so that should be replaced too).
The wife really likes the car. If we decide to buy it at the end of the lease we'll still owe 67%. However, it will be worth about 60%ish. But I've read on Edmunds and other places that often the leasing company will take a lower offer than the residual instead of taking a bath on the car taking it to auction, often close to or equal to the trade-in value. So we'll probably either just end the lease, having paid 33% instead of the normal 40%, or buy it for a reduced value. Or we'll buy it then trade it in right away for a different vehicle (things like any mileage penalties and any conquest cash or whatnot would play a role in doing this or not; should be able to just transfer the title to the dealer and avoid sales tax). Ahhh... decisions. But that is several years away. For now I think we made a good choice.
Originally Posted By: sciphi
Enjoy! It seems like you made a good for you choice.
It is hard to know where we'll be in our lives in 3 years, this next year and a half will be a time of transition (I'll be finishing my PhD and we'll be moving to wherever I get a job, plus maybe a kid in 2-3 years), so for now it was a good decision. We will lose a bit of money probably if we buy it at the end of the lease, even if we get a payoff figure less than the currently listed residual (see previous post), but for this time in our lives and considering how things are right now I don't regret our decision. We should do OK money wise if we just end the lease (because of the higher residual we got so our payments are lower) as long as we don't go over miles too much (depends on how far she has to go for her job after we move when I get a asst. professor job - we'll put a good number of miles on this next year, 15-17k). It is 20 cents a mile, so 10k miles over would be $2k in penalties.
And the wife loves, loves, loves the car (though we think a tire is out of balance or something... at 40 mph get a whoop whoop whoop noise), and that is worth something. We may keep it and trade in the Equinox in a couple years for a larger crossover that can also tow. Fortunately we have a lot of equity in the Nox. So with all the uncertainty this works out OK.
Enjoy! It seems like you made a good for you choice.
It is hard to know where we'll be in our lives in 3 years, this next year and a half will be a time of transition (I'll be finishing my PhD and we'll be moving to wherever I get a job, plus maybe a kid in 2-3 years), so for now it was a good decision. We will lose a bit of money probably if we buy it at the end of the lease, even if we get a payoff figure less than the currently listed residual (see previous post), but for this time in our lives and considering how things are right now I don't regret our decision. We should do OK money wise if we just end the lease (because of the higher residual we got so our payments are lower) as long as we don't go over miles too much (depends on how far she has to go for her job after we move when I get a asst. professor job - we'll put a good number of miles on this next year, 15-17k). It is 20 cents a mile, so 10k miles over would be $2k in penalties.
And the wife loves, loves, loves the car (though we think a tire is out of balance or something... at 40 mph get a whoop whoop whoop noise), and that is worth something. We may keep it and trade in the Equinox in a couple years for a larger crossover that can also tow. Fortunately we have a lot of equity in the Nox. So with all the uncertainty this works out OK.
That makes sense with your situation. If she likes it and it meets your needs, that's all that matters at the end of the day.
67% is a very high residual for a compact car. I haven't seen lease numbers recently but it seems like the lessor is heavily subsidizing your lease. Great for you in that you get a super low payment. But I would not plan on buying out the car at the end of the lease. It would be a financial disaster.
I also would not count on being able to negotiate a lease buyout. While I'm sure a few people have done that, I think it's a rare occurrence. Past results do not predict future performance. The leasing company already knows what it's future value *may* be and the risk factor has already been calculated.
Do whatever you can to stay within your mileage allotment, and keep the car in great condition. There will be a pre-lease termination inspection and any damage or excess wear and tear will have to fixed or you'll pay a penalty.
It's a nice car. Enjoy your great lease deal.
I also would not count on being able to negotiate a lease buyout. While I'm sure a few people have done that, I think it's a rare occurrence. Past results do not predict future performance. The leasing company already knows what it's future value *may* be and the risk factor has already been calculated.
Do whatever you can to stay within your mileage allotment, and keep the car in great condition. There will be a pre-lease termination inspection and any damage or excess wear and tear will have to fixed or you'll pay a penalty.
It's a nice car. Enjoy your great lease deal.
Originally Posted By: bretfraz
67% is a very high residual for a compact car. I haven't seen lease numbers recently but it seems like the lessor is heavily subsidizing your lease. Great for you in that you get a super low payment. But I would not plan on buying out the car at the end of the lease. It would be a financial disaster.
I also would not count on being able to negotiate a lease buyout. While I'm sure a few people have done that, I think it's a rare occurrence. Past results do not predict future performance. The leasing company already knows what it's future value *may* be and the risk factor has already been calculated.
Do whatever you can to stay within your mileage allotment, and keep the car in great condition. There will be a pre-lease termination inspection and any damage or excess wear and tear will have to fixed or you'll pay a penalty.
It's a nice car. Enjoy your great lease deal.
Yeah, one thing we didn't think about much was possibly keeping the car, so the higher residual at the time was a good thing. But the wife loves it. And I really like it too. The extra 7% difference in residual that we got compared to what they normally do adds about $1500 to the price of the car at the end of the lease if we choose to buy it. Not a bad situation really compared to if we go a lot over miles (which we don't know if we will, depends on my wife's commute in our new unknown location in a year), and we get the lower payment now when we need a lower payment. I think this car will hold its value pretty well, too. I know some lease companies have gap insurance for if the car is worth less than the residual and thus won't negotiate down the payoff price at the end of the lease, but some will. Dont know which one you have until you would try.
The guy from Hyundai corporate said on average people are getting out of their leases at 28.5 months on average and they have special deals to help people get out early without the normal financial hits of paying all your lease off at the time you get out, so that is an option, too. If they didn't have those programs people wouldn't be getting out at 28.5 months.
Hard to predict what our lives will be like in two or three years, but we have options. Even if sell the car at a couple thousand loss (because of our higher residual leading to a higher buying price at the end of the lease) to a dealer at the end of the term (avoid mileage and condition penalties by selling the car yourself just like buying it yourself) and buy a new vehicle. I think this situation is what the salesman was talking about when he said that unless you just end your lease it doesn't matter what the miles are it just matters what the car is worth (of which miles and condition will be a part of determining).
I feel better now than I did a day ago about our end of lease options. We may trade in the Equinox even for a larger crossover that can tow and keep the Elantra as a commuter car. The mileage thing was really concerning me yesterday. I'm normally very thorough, and I hate to say it but I felt a bit duped on the terms of the lease last night. I didn't know much about them and the wife was adament about wanting things settled that night, so I didn't have time to do my normal research. But I'm OK with things at this point now that I've done some more reading and calculations and such. And I guess that is all that matters.
67% is a very high residual for a compact car. I haven't seen lease numbers recently but it seems like the lessor is heavily subsidizing your lease. Great for you in that you get a super low payment. But I would not plan on buying out the car at the end of the lease. It would be a financial disaster.
I also would not count on being able to negotiate a lease buyout. While I'm sure a few people have done that, I think it's a rare occurrence. Past results do not predict future performance. The leasing company already knows what it's future value *may* be and the risk factor has already been calculated.
Do whatever you can to stay within your mileage allotment, and keep the car in great condition. There will be a pre-lease termination inspection and any damage or excess wear and tear will have to fixed or you'll pay a penalty.
It's a nice car. Enjoy your great lease deal.
Yeah, one thing we didn't think about much was possibly keeping the car, so the higher residual at the time was a good thing. But the wife loves it. And I really like it too. The extra 7% difference in residual that we got compared to what they normally do adds about $1500 to the price of the car at the end of the lease if we choose to buy it. Not a bad situation really compared to if we go a lot over miles (which we don't know if we will, depends on my wife's commute in our new unknown location in a year), and we get the lower payment now when we need a lower payment. I think this car will hold its value pretty well, too. I know some lease companies have gap insurance for if the car is worth less than the residual and thus won't negotiate down the payoff price at the end of the lease, but some will. Dont know which one you have until you would try.
The guy from Hyundai corporate said on average people are getting out of their leases at 28.5 months on average and they have special deals to help people get out early without the normal financial hits of paying all your lease off at the time you get out, so that is an option, too. If they didn't have those programs people wouldn't be getting out at 28.5 months.
Hard to predict what our lives will be like in two or three years, but we have options. Even if sell the car at a couple thousand loss (because of our higher residual leading to a higher buying price at the end of the lease) to a dealer at the end of the term (avoid mileage and condition penalties by selling the car yourself just like buying it yourself) and buy a new vehicle. I think this situation is what the salesman was talking about when he said that unless you just end your lease it doesn't matter what the miles are it just matters what the car is worth (of which miles and condition will be a part of determining).
I feel better now than I did a day ago about our end of lease options. We may trade in the Equinox even for a larger crossover that can tow and keep the Elantra as a commuter car. The mileage thing was really concerning me yesterday. I'm normally very thorough, and I hate to say it but I felt a bit duped on the terms of the lease last night. I didn't know much about them and the wife was adament about wanting things settled that night, so I didn't have time to do my normal research. But I'm OK with things at this point now that I've done some more reading and calculations and such. And I guess that is all that matters.
Congrats on the new car. As a point of interest, at some point the escapes went to electric power steering which made them feel much more stable and less twitchy. It compensates for crosswinds, passing trucks, and road crowns. It may also be variable ratio, I am not sure - but renting them all the time, the improvement was significant. It made it feel like a larger, more solid vehicle.
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