I do agree that leasing is not an economical way to buy a car, but what I am talking about is different and I bet most people don't even know this exists when they lease a vehicle. I don't lease myself, but found this strategy on the Stinger forum trying to find out how people are able to get a 52k GT2 for around 39-45k. So let me explain a bit more how this works and hopefully it can help someone out.Leases of all kinds are not economical way to buy or lease a car. Unless money doesn't mean that much in the decision.
Never heard of it but it sounds good so long as the fine print is not hiding any little extras.I do agree that leasing is not an economical way to buy a car, but what I am talking about is different and I bet most people don't even know this exists when they lease a vehicle. I don't lease myself, but found this strategy on the Stinger forum trying to find out how people are able to get a 52k GT2 for around 39-45k. So let me explain a bit more how this works and hopefully it can help someone out.
With regular lease, typically you lease the vehicle for 36 months or more and wait for the maturity date to either buy or return the car. What most people don't know is by the time your lease matures and decide to buy the car, you would have paid over MSRP for the car itself. However, if you are planning on buying a car, there maybe a better option to get a better deal using a Lease Cash. So how does this work? It's called a Lease Buyout. Let me give you an example.
Currently a Kia Stinger has a lease cash offer of 7200! or purchase rebate of 1000
There is also a 1000 manufacturer rebate
As I mentioned a fully loaded GT2 is 52K.
So let's break it down, for simplicity I won't add TTL and other fees....
Negotiated Sale Price... let's say 50k because lets face it nobody wants to buy or lease at MSRP
So 50k - 1k manufacturer rebate - 7200 lease cash = 41,800
Lease term let's say is 36 months with a residual value roughly 50%
Let's also say that your monthly payment is 600 (including the interest).
This is what you do.... Once the lease is set, you wait for your lease contract to show up on HMF in about a week then request to buyout the car. Since you only leased the car for 1 week, you only paid 1 week of interest on the car + maybe 0-300 buy out fee (this is what I heard for KIA), and pay the remaining balance of the car (either finance with a bank or write a check for full amount). What you end up with is roughly 42k Stinger GT2 OTD which you now own, same as if you purchased it directly. Basically what your taking advantage here is the whopping 7200 rebate cash. Now compare that to a regular purchase. If you do the same thing with regular purchase under the same condition, this is what you get....
Negotiated price: 50k - 1k manufacturer rebate - 1k purchase offer = 48k for a stinger GT2. Again this is just for simplicity so taxes are not included, but hopefully you get the point.
Now here's the question.... I know KIA allows the early buyout and is stated on the contract. I don't know if Hyundai is the same....I would think it would be considering they are under the same parent company Hyundai.