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Has anyone been able to lease their Hyundai with over a 15,000 mile a year lease? Most other finance companies let you lease additional miles ahead of time at $0.10 a mile since they are purchased before hand. My dealer said they don't do that and all I can do is just pay the $0.20 a mile overage when I turn it back in.
 

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QUOTE (jchristie07 @ Jun 5 2010, 04:24 PM) index.php?act=findpost&pid=330110
Has anyone been able to lease their Hyundai with over a 15,000 mile a year lease? Most other finance companies let you lease additional miles ahead of time at $0.10 a mile since they are purchased before hand. My dealer said they don't do that and all I can do is just pay the $0.20 a mile overage when I turn it back in.
I have 15k, but that's all I need so I didn't try to get more.
 

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Well just an FYI it looks like my dealership lied to me, since according to the Hyundai Financial web site, you can purchase additional miles above 15,000 at a cheaper price at the signing on the lease. I'll be calling their customer service Monday to see if they can do anything about it, since I asked three times including right before I signed my name and they said they do not do anything above 15,000 and can't purchase any additional miles.
 

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May I ask why you're wanting to do a lease while doing that many miles /yr? As it stands with a purchase you'll come out better in that you can get some trade equity on your next car.
 

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QUOTE (sdaume @ Jun 8 2010, 01:19 AM) index.php?act=findpost&pid=330803
May I ask why you're wanting to do a lease while doing that many miles /yr? As it stands with a purchase you'll come out better in that you can get some trade equity on your next car.
I owed more on the car that I traded in then what it was worth, and came out to be roughly ~$50 a month less with a lease, even with the 72-month 3.99% loan. I also drive on average 15,500 miles a year and just wanted an extra 1,000 miles per year added in as a safety net so I had zero worries.
 

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The problem with high mileage leases is the depreciation which we all know our hyundai's suffer from without high mileage issues...the high mileage just compounds the issue

Knowing this, I think dealers/manufacturers might be apprehensive giving out high mileage leases knowing the car is basically worthless when it's flipped back at the end of the term.
 

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QUOTE (NT2SHBBY @ Jun 8 2010, 08:15 AM) index.php?act=findpost&pid=330838
The problem with high mileage leases is the depreciation which we all know our hyundai's suffer from without high mileage issues...the high mileage just compounds the issue

Knowing this, I think dealers/manufacturers might be apprehensive giving out high mileage leases knowing the car is basically worthless when it's flipped back at the end of the term.
Correct, they make a signifcant amount of money back on the penalties when turning the car back in.

Breaking things down financially. It's better to buy than to lease. When calculating out opportunity cost leasing a car for $300 a month with $3000 do at signing (3 year contract), you would have to make an annual salary of over $95,000 with no fees when turning the vehicle over.

When you purchase a vehicle (estimated at $25,000) with $3000 down and an average monthly payment of $400 a month and 4.5% interest ( and using a credit union that usually applies 70% to principal and 30% to interest). You will start to gain equity in the car which traded in after a 3 year run, will put you ahead.

There is a break down of this at www.fool.com a good website for beginner and moderate financial assistance.
 

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QUOTE (yjbeach @ Jun 8 2010, 09:31 AM) index.php?act=findpost&pid=330848
Correct, they make a signifcant amount of money back on the penalties when turning the car back in.

Breaking things down financially. It's better to buy than to lease. When calculating out opportunity cost leasing a car for $300 a month with $3000 do at signing (3 year contract), you would have to make an annual salary of over $95,000 with no fees when turning the vehicle over.

When you purchase a vehicle (estimated at $25,000) with $3000 down and an average monthly payment of $400 a month and 4.5% interest ( and using a credit union that usually applies 70% to principal and 30% to interest). You will start to gain equity in the car which traded in after a 3 year run, will put you ahead.

There is a break down of this at www.fool.com a good website for beginner and moderate financial assistance.
Well I would beg to differ with your analysis. Plus I've never heard of applying 70% to principal and 30% to interest with a credit union loan? All auto loans I know of are a straight amortization schedule, which as you pay down the balance, more goes to principal and less to interest. If there is a loan program other than this where more is applied to principal in the beginning, then I'd assume you will be paying for it with a higher stated interest rate. . . but any case here's my analysis and logic.

Lets start with a little background: This is my 3rd Hyundai, and my wife has owned 4, so I am well accustomed to the residual value when buying. (I have negotiated all but her first car which was purchased before I knew her). Also, I am an accountant so I am by nature cheap and one of the reasons I got this car was to shave off $100-200/month in expenses PLUS get a new car. My previous car (a 2006 Sonata GLS with the 3.3L engine) I owned for almost 4 1/2 years and I never had equity in the car. That being said I was stupid and financed it over 72 months and really didn't put any money down when I bought it. For the last year and a half I stayed about break even with KBB/edmunds value compared to my loan. This is also the first car I've ever leased.

Now the numbers. Using my lease as the example, I put $1,000 down, haggled down the purchase price of the 2011 as well as my trade in value and my lease payment including taxes is $298/month for 36 months with 12,000 miles per year (which is what I drive). Using the exact same numbers (down payment, purchase price, trade in, etc) financing over 60 months at 2.9% I would be paying $395 and at 72 months at 3.9% I would be paying $348. On the lease I will have paid total cash of $12,128 (including the $400 lease end fee) over the 36 months and will turn over the keys. On the 60 month loan, I would have paid cash of $15,228 over 36 months (3,100 more) and would owe $9,205 on the car. Now I have no idea what the trade in values will be like in 3 years, but judging from past experience I wouldn't put it much past 10k. Even if I assumed the trade in value after 3 years would be 12,305, I would be at a break even point between leasing and buying. That is I would have paid $3,100 more cash by buying, which I will recoup when I trade it in assuming I could get the 12,305. This isn't even taking into account the time value of money, which would drive the required trade in allowance to around 13k to reach a break even point. Financing over 72 months and the break even point would go even higher. Now sure, maybe in 3 years I will be kicking myself because the trade in allowance is some ridiculous value, but I won't be holding my breath. Personally I like the idea of going back in 3 years to look at a new car and only have to haggle one aspect (the price of the new car) and not worry about what my trade is worth.

Sorry for the long post, but with the excellent residual values and money factors Hyundai is offering with their lease deals, I couldn't pass on giving it a try. I'm curious to see if in 3 years I still feel that I made the right financial decision. Ohh and of course it is cheaper to buy a car and keep it for say 10 years, than to lease, but I know I wouldn't be keeping the car for 10 years.
 

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Yeah except you drive ~15500 a year, so 20 cents times 3500 times 3 years is gonna be a lot, isn't it? $2100?


Although I shouldn't be talking since I drive ~14000 miles and got the 15000 miles a year lease.
 

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I hope you do post back in 3 years and let us know your overall feelings and experience with the leasing option. I didn't want to go into too much detail but there is a way to get 70% towards the principal is to make 2 monthly payments early and then continue to keep making monthly payments like normal (almost like cheating the numbers).

I always advise people that do not make a large down payment to send in extra money for 2 years towards the principal balance of the car 1 day after making their monthly payment (they must indicate this on the memo line). This will decrease the total amount of interest paid on the car.

I am never a candidate for lease options because I put on about 15K-20K miles a year on a car.
 

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QUOTE (yjbeach @ Jun 9 2010, 10:32 AM) index.php?act=findpost&pid=331214
I hope you do post back in 3 years and let us know your overall feelings and experience with the leasing option. I didn't want to go into too much detail but there is a way to get 70% towards the principal is to make 2 monthly payments early and then continue to keep making monthly payments like normal (almost like cheating the numbers).

I always advise people that do not make a large down payment to send in extra money for 2 years towards the principal balance of the car 1 day after making their monthly payment (they must indicate this on the memo line). This will decrease the total amount of interest paid on the car.

I am never a candidate for lease options because I put on about 15K-20K miles a year on a car.

leasing still benefits high mileage drivers IF they can write off the payment and mileage on their taxes (which includes ME) :D
 

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I get reimbursed for both fixed amount and business miles. I still think buying is the way to go in any situation. Lease is for high end cars where each year you trade in and move up to the next greatest thing. IE Realtors, CEO etc.
 

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QUOTE (ssmuff @ Jun 9 2010, 11:40 AM) index.php?act=findpost&pid=331240
I get reimbursed for both fixed amount and business miles. I still think buying is the way to go in any situation. Lease is for high end cars where each year you trade in and move up to the next greatest thing. IE Realtors, CEO etc.

different strokes for different folks...i didn't want to commit to a car I wasn't sure I was going to like....I made that mistake with my 2000 Sonata GLS V6 way back in 2001. I'm still not 100% sold on Hyundai.
 
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