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Hyundai Sonata Lease Questions

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Hyundai Sonata. Thanks.

Car_man
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  • Does anyone know what the residual value is for the current lease offer (4cl GLS auto $199/mo 36 mos ~$2k down)?
  • danf1danf1 Posts: 935
    The 12,000 mile per year residual is 45%. There is a .00001 money factor and $1,000 lease rebate.
  • I am thinking on leasing an 06 sonata GLS for $199.00 per month. When I checked at the dealers for final monthly payments they included acquisition fees of $595 and a lease end disposition fee of $300. Is this standard practice? I've leased several Fords and never had these fees included in my lease. Any suggestions to get around these dealer add on fees? The down payment is $2,138 doesn't that include some of these fees?
  • Hi infielder. Hyundai Finance charges a lease acquisition fee of $595 and a lease-end disposition fee of $300 on every vehicle that it leases. Individual dealers do not have the authority to waive these charges. For a while, Ford Credit was one of the few banks out there that did not charge an acquisition fee on leases, but I believe that it even does so now.

    When visiting dealers, keep in mind that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Even manufacturers' advertised lease payments usually leave a little room to negotiate. It would be in your best interest to find out the exact MSRP and selling price that the lease that you are interested in are based upon and to try to negotiate the price down even further if possible.

    The $2,138 that you mentioned includes a $1,999 capitalized cost reduction and this car's $199 first month's lease payment. The $595 acquisition fee was rolled into the capitalized cost of the lease that Hyundai is currently advertising on the 2006 Sonata. If you pay it at lease signing, your vehicle's cap cost should be at least $595 lower which would result in a slightly lower monthly payment.

    Car_man
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  • Dear Car_man, Thanks for your information. I hope you can answer some additional questions for me. Is GAP insurance included free of charge on the 06 Sonata lease? The Hyundai website states that all leases thru Hyundai Finance Co. comes with GAP insurance automatically. That is vague as to wether it is free or is available for a fee. I went to a dealer in Indiana (6% sales Tax) and requested they include my down payment into the lease payment. Also, I was able to qualify for the Competitive Bonus of $1,000.00. and asked for that to be considered in reducing my monthly payment. They agreed to sell me the 06 Sonata GLS 2.4L for $18,696. They told me that this was $300.00 below their cost. The sticker on the vehicle I was interested in was $19,995. They showed me an invioce of $17,896 for the vehicle, $600.00 for destination, and an advertising fee of $500.00 for a total invioce of $19,996. My questions are as follows:1) Are dealers actually charged $500.00 in advertising fee for this vehicle? 2) Does this sound right as their true dealer invioce on this vehicle? 3) Should I still have to pay for the acquisition fee of $595 since I asked them to include the $1,939( which included the acquisition fee) into the monthly lease payment? 4) What would you estimate my monthly payment to be based on the above information? 5) Do you sell Hyundai's in this country and if so what state?
    I contacted Hyundai Financing and Hyundai customer relations earlier today and they could not tell me that they require their dealers to charge an acquisition fee and an end of lease disposition fee. They suggested I contact the local dealer to get my questions asked. How ironic is that. Thanks for your time and patience and hopefully my wife and I will lease one of these cars in the next few days.
  • bhmr59bhmr59 Posts: 1,598
    Does the $18,696 include sales tax and all fees? If not, other postings have shown better deals. Check the prices paid thread.

    Re: Lease/Gap coverage, check with your auto insurance company first. Some ins. companies offer an optional "package endorsement" for about $30 a year (in CT). Several coverage enhancements in the package endorsement, including great rental car provisions, OEM parts, Lease/Gap, locksmith service, etc.

    An alternative to leasing is buying a car using a home equity loan, for homeowners having a good amount of equity in their homes. Find out what a lease would cost and up front money. Negotiate a purchase price and put down the same amount as the lease would require. Then make monthly home equity payments equal to the lease payments (in addition to any other H.E. payments). The interest on the H.E. should be income tax deductible. At the end of the "lease period" the buyer can decide to sell the car or continue to make payments. If the car is worth more at the end of the lease period (likely) than the remaining balance on the loan, the buyer is ahead of the game and can sell the car or keep it and continue payments. The buyer can also get out early if for some reason he is dissatistifed with the car...on a lease the "buyer" is usually stuck for the duration. Also, at the end of the lease, the "buyer" has paid "all that" money and gets to walk away with "nothing."

    IMO, most leases are bad deals for the consumer. Use a H.E. loan or even a long term car finance and then turn it in if a new car is wanted every 3 years, etc.
  • Thanks for the information. I've leased Ford vehicles for years and never have i obtained a Home Equity loan. We have always turned in our vehicle at lease end and leased a new vehicle. I have new avenues to explore. The $18,696 price did not include sales tax(6%) and doc fees (90) and acquisition fee (595) and disposition fee (300). I appreciate the assistance and realize that this deal was not the best i could get. Also, the dealers around where I live don't seem to have any 06 Sonata GLS 2.4L's in inventory. Is this vehicle that hard to find? Is it in such a demand?
  • kyfdxkyfdx Posts: 29,863
    You have to very careful with these...

    To get the lowest rate, you have to have a variable rate line of credit... Currently, most HELOCs are at prime rate... You can usually beat that rate with a lease..

    To put it in perspective.... just three years ago, the prime rate was 2.75% lower than it is today... On a 60 month loan with a $20K balance, that would raise the payment by $25/mo... just for extra interest..

    regards,
    kyfdx
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  • danf1danf1 Posts: 935
    Hyundai does provide Gap insurance in all of their leases.
  • bhmr59bhmr59 Posts: 1,598
    True...most HELOC's are variable interest rate. But we're considering a relative low amount financed compared to a home mortgage. Look at how many people have ARM mortgages with a principle balance many times the amount of the $20K balance you mention. When the prime rate changes, either up or down, the change only affects the remaining principle balance.

    If someone is looking at a 3 year lease, they should consider the HELOC option for a three year period. At the end of the 3 years they should be able to sell the car for more than the remaining balance on the note. With a lease they have nothing at the end of the lease period. If someone is in the 28% tax bracket, each $1,000 of interest "only" costs them $720 after taxes. The car buyer also has the option to sell early or to keep it beyond 3 years. And if a purchase can be negotiated at a better price than a lease, that savings must also be considered.

    A HELOC may not be for everyone. But everyone who qualifies should consider that option as an alternative to leasing.

    Simply put...don't buy a monthly payment, buy a car.
  • You're welcome infielder. I'll certainly try to answer any questions that you have. I believe that gap insurance comes with all Hyundai Financial Services leases at no additional charge. I suppose that one could technically say that it is not exactly "free" because Hyundai Finance charges a $595 acquisition fee on every vehicle that it leases, which in part is used to cover the cost of the gap insurance. Every bank charges an acquisition fee on leases though, so at least you don't have to pay extra for the gap insurance.

    I am not sure of Hyundai charges a $500 advertising fee on this car, but I can tell you what I have told every other community member who has ever questioned a random fee that a dealer has tried to tack onto a deal: look at the big picture. Rather than letting dealers cloud things by adding all sorts of fees to your deal, ask them for an out-the-door price that includes all fees for the car that you want. Once you know this car's total price you can easily shop around with a few other dealers to see which one is offering you the best overall deal. If doesn't matter if this dealer tries to add a $500 advertising fee to your deal if its total price for the car that you want is still the lowest in your area. Believe me, this dealer definitely is not selling you this car for $300 below cost. Not only is Hyundai providing a $1,000 cash incentive on leases of it right now, but there is dealer cash on this model as well.

    If you are rolling your car's acquisition fee into its capitalized cost (the total amount financed), you should not have to pay it at lease signing.

    Let's estimate what its lease payment should be like using the information that you provided in your post and Hyundai's actual lease program. According to my calculations, if you were to lease a 2006 Hyundai Sonata GLS 4-cyl. with an MSRP of $19,995 and a selling price of $18,696 through Hyundai Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $286.

    Car_man
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  • jprybajpryba Posts: 201
    Yes, gap insurance came with my 06 Sonata GLS lease. The manager who worked with me on my lease (at Ricart here in Columbus, OH) and I both thought that it wasn't included based on what was in the contract, so he offered me gap at $10 a month (which seemed fair enough to me). Then I got called back a week later to say we had to re-do the paperwork because yes, Hyundai does indeed include gap insurance on their leases. So, my payment went down $10 a month.

    With owner loyalty and the HMFC incentive, plus adding in extra miles to make it 15K/year, I managed to get my Sonata for $250 a month (and this includes taxes, fees, etc).
  • Let's estimate what its lease payment should be like using the information that you provided in your post and Hyundai's actual lease program. According to my calculations, if you were to lease a 2006 Hyundai Sonata GLS 4-cyl. with an MSRP of $19,995 and a selling price of $18,696 through Hyundai Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $286.

    I leased a 2006 Sonata GLS 4cyl through Hyundai's promotional lease plan and my payments are $239..... I found it to be a good lease offer
  • That does sound like a good deal. Congratulations on your new car, clarkws756.

    Car_man
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  • slattsslatts Posts: 1
    Was at a Hyundai dealer today in L.I, NY inquiring about the following:
    Lease a 2006 Hyundai Sonata GLS 4 Cyl. for $199/month for 36 months, $2,099 customer cash down plus $1,000 HMFC origination support*, and $2,298 due at signing. See your local dealer for lease details. This program is effective from October 01, 2005 through October 31, 2005.
    The salesperson was unfamilar with this and left to talk to the "Lease Mngr".
    Returned and told me it would be $6,000 down to get the $199 a month. He than tried to push a lease on a 6cyl GLS for $269 a month w/$3300.00 down. Can anyone clarify this for me?
    Thanks.
  • Hi slatts. Did you say $6,000 down?!?!?!?! :confuse: Man, this dealer was really trying to take you for a ride. Hyundai is advertising a special lease on the 2006 Hyundai Sonata GLS 4-cylinder right now for $199 per month for 36 months with $2,099 down, and like most manufacturers' advertised leases I would not be surprised if you were able to negotiate a better deal than this. The most important numbers to focus on when leasing are your vehicle's selling price and the money factor that is being used to calculate its lease payment. Shop around, I am sure that there is a number of Hyundai dealers in the New York area, until you get a price quote that you are comfortable with. Then make sure the dealer that quotes you that price calculates its lease payment using Hyundai Finance's buy rate lease money factor. If you let me know the full MSRP and approximate selling price of the exact car that you are interested in, I can estimate what its lease payment should be for you and even tell you what sort of money factor should be used to calculate its lease payment.

    Car_man
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  • I would put money on your questionable dealer being Millenium or Atlantic...With a long shot being Hustead.

    I have been to all 3 and found their sales tactics to be unbelievable.
  • I went Hustead Hyundai last week. Gave me $16996 for GLS 4cyl(before tax). Called me today said that since I didnot own a hyundai before, it should be $17996!!!. :mad:
  • Car_man,

    Can you please give me the MF and residual for a 2006 Sonata LX without Navigation, 15K miles a year for both 24 and 36 months.

    Thanks
    Andy
  • Hi sunysb. Hyundai is currently providing a $1,000 cash incentive on the 2006 Sonata to current Hyundai owners. Apparently the dealer originally though that you were a current Hyundai owner, or was trying to play games with you. I am not personally all that familiar with what the market is like for this car right now, but you may be able to get an idea by checking out the following discussion: "Hyundai Sonata: Prices Paid & Buying Experience".

    Car_man
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  • Hi Andy. I don't believe that Hyundai is running a special lease program on 24 or 36 month leases of the Sonata right now. the only info that I have seen is for a special 39 month lease on this car. If you were to lease a 2006 Hyundai Sonata LX without navigation through Hyundai Finance right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00101 and a really low 40%, respectively. When negotiating your lease on this car, make sure to take the $1,500 lease cash that is currently available on it into account.

    Car_man
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  • rws0131rws0131 Posts: 27
    I just found out the Sonata has a great money factor going on this month! They also have 1500 lease cash going on. Here is what I found: GLS-V6 = 27 month m/f of .00024 (that's correct) and residual of 51%. LX-V6 = 27 month m/f of .0046 and residual of 50%. Both are for 15,000 miles. 12,000 is a 1% difference. Not a bad deal for a Hyundai.
  • jaxs1jaxs1 Posts: 2,697
    http://www.hyundaiusa.com/financing/specialoffers/special_offers.aspx

    Lease a 2006 Hyundai Sonata GLS 4 Cyl. for $189/month for 27 months, $2,299 customer cash down plus $1,500 HMFC origination support*, and $2,488 due at signing. See your local dealer for lease details. This program is effective from January 04, 2006 through January 31, 2006.

    Is this a good deal or is there more room for the dealership to discount? Seems like it's based on cap cost of full MSRP before the $1500 HMFC support. (TV ad says $19,995)
  • jaxs1jaxs1 Posts: 2,697
    I guess no one is paying attention to this message board.
  • ln214ln214 Posts: 1
    I'm also interested in the lease advertised as available until the end of Jan. 2006. What do I need to look for in a residual? I usually do a Ford RCO. Hyundai says you have to pay the difference between the value of the car at the end of the lease and what you contracted as the end-value when you initiated the lease. Do most people get stung with this requirement? With Ford, I never had to worry about that. I need expert input, please. Thanks.
  • jaxs1jaxs1 Posts: 2,697
    I have never heard of that. Where does it say the Hyundai lease has this requirement?
  • Hi jaxs1. I believe that Hyundai's current advertised lease on the 2006 Sonata requires around a $900 dealer discount to arrive at the monthly payment it is touting. A base 2006 Hyundai Sonata GLS 4-cylinder has a spread of $1,499 between its full MSRP and dealer invoice price. Given the dealer cash that Hyundai dealers get back on most sales, you probably still have a little room to negotiate here, like a couple hundred dollars.

    Car_man
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  • Hi ln214. What you described, having to pay the difference between what your car is actually worth and its residual value, sounds more like an open-ended lease than a closed-ended lease. I believe that all banks that lease vehicles in the U.S., at least manufacturers captive finance companies Like Hyundai Motor Finance, use closed-ended leases. Where did you hear that you would have to pay the difference between your car's real world value and its residual value at lease-end? I don't believe that is right.

    Car_man
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  • aims730aims730 Posts: 1
    Hi Car_Man,
    I'm a female, recent college grad and I want to make sure I'm not being taken for a ride!! I went to a hyundai dealer today to test drive and get a quote for a 2006 sonata LX 39 month lease. I am trading in a 1998 Saturn with a blue book value of around $3,000. (I was pleased to find that the dealer was willing to offer me $3,000 for the trade in without me offering this figure first.) His original quote was $340 a month with $1,100 out of pocket and the $3,000 trade in. I said absolutely no way and laughed in his face. I negotiated him down to $195 a month, but with this low payment he added another $800 to my down payment, bringing it to $4,900 down. This seems like a lot. I am going back tomorrow and my plan is to say that $195 a month, $1,000 out of pocket, and $3,000 trade in is my final offer. What are your thoughs on this?!? Please help
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi aims730. You are being very smart by doing research before making a big decision like getting a new car. You really need to focus on the selling price of the Sonata that you want rather than its lease payment. Negotiate as low a selling price as possible on the car that you want, and then have the dealer that you are working with calculate a lease payment on it using Hyundai's buy rate lease money factor. You should be able to get an idea of how much you should pay for the car that you want by visiting the following discussion: "Hyundai Sonata: Prices Paid & Buying Experience". Once you have an approximate selling price, feel free to stop back here and I would be more than happy to estimate what your lease payment should be for you using Hyundai Finance's actual lease program.

    I see that you are considering trading in your current car. There's nothing wrong with trading in a vehicle when leasing, just have the dealer that you trade your car in to cut you a check for it rather than using the proceeds from it as a down payment for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Sonata would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    Car_man
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