Hyundai Azera 2006

ateixeira

Depends, I'm not sure I'd compare them directly.

A used LS would be nice, but I would be a little concerned about replacement costs for whatever breaks, even though it is reliable. And the V8 is overkill for my needs, using premium fuel and probably lots of it.

Any new car is different, in the case of the Azera you'd be covered for a long warranty period, and replacement parts would cost a bunch less, plus I believe the engine only needs regular fuel (and less of it).

So first I'd ask, do I need that much luxury? For me, the answer is no. I'd be cross shopping an Avalon with the Azera.

-juice

frazee

Comparison of Azera to LS430 is probably a bit stretched. Again, I think the key is to focus in on what it is that is highly important to you in a car and then the relative cost of obtaining it. Certainly the Azera gives memory seating/mirror/steering wheel which is a large comfort item. It provides a high quality sound system (Infinity 310 watts, with 6 CD changer and MP3 plug in). The car has as much interior space as almost any other available and a large size trunk. It has nice styling. The acceleration is probably undetectably slower than an LS430 (perhaps 6.8 to 60 instead of 6.2). It does use regular grade (probably 89 octane is better than 87!). It has pedal adjustments (not sure if the LS has that?) It has the automatic rear window shade, heated seats, heated mirrors, rain-sense wipers, auto headlights, full-size spare, quality tires (the Michelins are super in the rain!), nice lights for dash and cabin at night, FIVE years of roadside assistance, excellent warranty. It also has Electronic Stability control, Anti-lock brakes, 8 airbags, active head restraints and given the Sonata's top crash rating, would expect that their engineers know how to build a safe car. However, a Lexus 430 IS a dramatically different car in terms of overall build quality and integration, history, engineering and certainly the quality of their dealerships, service departments and overall customer experience. I am fortunate in that my dealer has complimentary loaners for Azera purchasers (which adds another "bene" to the package.) Also, you CAN get a variety of other options integrated into the 430 which are unavailable on the Azera such as Navigation, Blue Tooth, Parking Assist, rear camera etc. All of that being said, if money were not object, I would definitely buy the LS430 (or the new LS460 which is a SUPER car)....but money is almost always an object, and at $28,000 delivered for the whole package, I don't think there is more car available at anywhere near that price. The Motor Trend article was one of the poorest comparison articles I have ever seen. It not only showed lack of detailed knowledge of the features of each car, but they were comparing apples and bananas. Hyundai has offered a seemingly quality-built car with 90% of the features that most people want, large size and fully-powered, with great warranty and roadside coverage at a genuine bargain price. I will see how mine does in the blizzard on Sunday !

cneuman

Does anyone, especially current owners, have a problem with the plastic inside door handles? How do you think they will wear over time?

How many of you have a dealership that offers loaners?

C

gene_v

You should be a salesman for Hyundai. LOL
I'm about to head for the dealer and negotiate. Charg :P :P

cneuman

Sorry. Of course I meant to say in #844, how many of you have purchased your cars at a dealership that offer loaners?

C

wolverinejoe80

maybe it's just me, but i wouldn't buy VW right now. i've had so many issues with jetta's and passats and i don't trust them. at least not yet

i'll take azera over passat.

i'm a acura owner and lexus ES owner. i admit that i'm a 'brand' snob, but new sonata and azera blew my mind. and my perception of hyundai has completely changed forever.

not to mention up coming santa fe and entourage. what they are doing is unbelievable.

gene_v

http://www.gizmag.com/go/5177/1/

ricwhite

--"Hyundai has offered a seemingly quality-built car with 90% of the features that most people want, large size and fully-powered, with great warranty and roadside coverage at a genuine bargain price."--

I agree with all of that except for "bargain price." Yes, the initial price is lower, but since the resale and residual value on the Azera is lower than comparable automobiles, the ACTUAL cost of ownership or lease is rather high and would be on par with other cars. The notion that the Azera costs less than, say, an Avalon or Acura TL, is a myth. Over the term of ownership, they are all close to the same.

Still . . . the Azera appears to be a car with great performance and features. But to use "great bargain" as a point in favor of the Azera is misguided since it has one of the worst resale/residual values in the industry.

snakeweasel

But to use "great bargain" as a point in favor of the Azera is misguided since it has one of the worst resale/residual values in the industry.

That remains to be seen, lets check it in three years.

wolverinejoe80

car just came out. you don't know if it will be one of the best resale values in the industry

hyundai is growing up like my 14 year old nephew. remember that

snakeweasel

I agree we don't know what resale values will be 3,4,5 or more years down the road. Especially with a brand new model. Thats why looking at resale values should be way down the list of priorities when looking at a new car.

frazee

Ric...I would say "yes" and "no" to the point you are making.

Clearly resale value is a key component of total cost of ownership (warranty, repair, gas, insurance etc.)

However:
a.) If you buy a car to drive it into the ground (7 years or more), resale is negligible component.
b.) If you can get the company to give a "subsidized" lease where they assume a much higher residual than has been experienced in the past at a virtually 0% interest rate, then effective cost begins to track better. This was the case with the 57% residual 2% leases with $1,000 cash-back they had in January.
c.) If the perception of the quality and desirability increase over time, so shall the residual and resale...but that is in the future and a big ponderable; although 1974 Toyota Crowns had horrible resale and 1979 Corollas resold at 90% of MSRP after 3 years (due to overall price increases as well as Toyota really gaining traction.)

jhinsc

I'm in the market for a new car, so I test drove one today. I was amazed at how far Hyundai has come. Smooth, quiet, and very refined are the words I think best describes it. The only quibble I have is I thought the seat cushions were a bit short, but it could have been the way the seat positions were set. Overall it reminded me of my previous vehicle, an Acura RL, which I liked very much. The current lease program looks like a good one. I informed the sales manager I'm looking for a 36 month lease, with little to no down. He stated I should be able to have the payments in the mid $300's. After shopping around other makes, it's will be interesting to see which car I end up with.

ricwhite

a.) I don't plan to drive the car into the ground. I plan to lease a car for 3 years.

b.) There is no "subsidized" lease program right now for the Azera which artificially raises the residual value or lowers the money factor.

C.) "perceptions" of quality and the resulting changes in resale value occur slowly over time and will not affect current leases on Azeras.

Based upon actual "reality", the Azera on paper has no financial advantage over other more expensive cars in its class such as Avalon or Acura TL (although there's a slight advantage over Passat). That's what I'm looking at right now on my financial sheet.

ricwhite

Mid $300s for a lease of a Azera Limited?? No way. I was quoted $450-$520 per month for a 36 month lease for an Azera limted with either premium or ultimate packages . You must be looking at an Azera SE stripped for mid $300 and even that's questionable with no down payment.

Lets say your adjusted cap cost = $24,750
Down Payment: $0
Residual Value: 44% ($11,000)
Money Factor .0025 (maybe 6%)
Sales Tax -- Maybe 7%
Term: 36 months

Lease cost: $471 + 33 (tax) = $504 per month

Did you get any specifics??? Mid $300s?? I love to see the numbers on that.

frazee

I don't think you can go wrong with the Avalon or TL (VW has a very checkered record for both reliability and for service, so that one would NOT be on my list.) I looked closely at an Avalon a while ago and would have jumped had it not been for their absurd lack of an electric tilt/telescope steering wheel. Ironic that Toyota does NOT have one on the Avalon, whereas they have one on their Sienna Van which gives it a decided one-up over the Honda Odyssey (which does NOT)....Again everyone tends to focus on features that are more important for their own comfort and other buying criteria. I believe that this program at $299/month with $2925 down is a subsidized program. You would have to work the numbers for your own situation. The fully loaded Limited with Ultimate (I think the $299 is without Ultimate which is $2500)...has $29,995 MSRP and dealer cost of $27145, with dealer holdback of $483.

Lease a 2006 Hyundai Azera Limited for $299/month for 27 months, $2,925 customer cash down plus $1,000 HMFC origination support*, and $3,224 due at signing. See your local dealer for lease details. This program is effective from February 01, 2006 through February 28, 2006
AND

If you are currently a registered owner of a vehicle distributed by Hyundai Motor America, you can receive an additional $1,000 off a new 2006 Hyundai Azera. This program is effective from February 01, 2006 through February 28, 2006

jhinsc

Don't shoot the messenger! That's what I was told and I drove the Limited with the ultimate package. The manager quoted the current lease program and then made the statement about a 36 month lease. I wasn't buying so we didn't start crunching numbers. Who knows, maybe he was giving me story to come back. We'll see.....

ricwhite

I was at the Hyundai Dealership five days ago looking at the Azera. I am only interested in a Limted with Ultimate package. I specifically asked about any lease deals and the salesperson said there is none. I left my name and phone number and he (Jason) promised to call if any program or deals came up. I received no calls.

I am a member of the leaseguide.com program and I have run the numbers myself. The Azera for 36 months is currently at a 44% residual. I'm not sure about the money factor. I stuck in .0025 (6%). Puts me over $500 per month even with a moderate down payment. Since an Acura TL has a residual at 56% for 36 months, the monthly lease payments are about the same as an Azera even though the initial MSRP is about $4500 higher.

I currently own a Passat. I have enjoyed the car except its reliability has been a problem for me. The only reason I would consider a Passat again is for the 4 wheel drive option.

I am still seriously looking at Azera, but since the cost to lease is almost exactly the same as a Acura TL, I am leaning to TL right now. Haven't test driven a TL yet, though, just sat in one, so I'll need to do that. I'm also waiting until the crash test results are in on the Azera.

This low residual value for the Azera is the only thing right now that is REALLY bothering me with a lease. I'll need to check into this lease deal and see if I can get a higher residual number or lower money factor on an Azera Lmtd Ult.

Acura TL, however, has a proven reliability and performance record. It also has navigation system. It is also sportier and slighter faster than Azera. That, along with the low resale value for Hyundai, is why I'm currently leaning toward the TL.

ricwhite

I didn't mean to come across as harsh. I was just very surprised that the salesperson gave you a mid $300 figure for a 36 month lease for a Azera Lmtd Ult with low down payment. If you go back, please get some specific numbers (adjusted cap cost, residual value, money factor). I would really be interested in what the deal is. Thanks!

snakeweasel

Lease a 2006 Hyundai Azera Limited for $299/month for 27 months, $2,925 customer cash down plus $1,000 HMFC origination support*, and $3,224 due at signing. See your local dealer for lease details. This program is effective from February 01, 2006 through February 28, 2006
AND

Just running the numbers on this, at 6% that would give a residual value of around 70% of MSRP. The question I have is how many miles are allowed and what is the cost per mile over that.

ricwhite

Lease a 2006 Hyundai Azera Limited for $299/month for 27 months, $2,925 customer cash down plus $1,000 HMFC origination support*, and $3,224 due at signing. See your local dealer for lease details. This program is effective from February 01, 2006 through February 28, 2006
AND

I would really like to see the specifics of this deal. In order to do it, they would have to artifically raise the residual value VERY high and maybe reduce the interest (money factor) to almost nothing. Does anybody have the numbers and fine print with this lease deal. Are there hidden costs such as a $3000 disposition fee at the end of the lease or something?

Here is a possible senerio for this this deal:

Car: Hyundai Azera Limited (no options)
MSRP:.................. $26835
Base Cap Cost.......... $25500 (HUGE discount)
Added costs (bank fee). 650
Down Payment........... $ 2925

Adjusted Cap Cost...... $23225
Residual Value (27 mo. 10,000 miles/yr) ............. 51%

Money Factor (should be
about .0025 - 6%) ..... .0025

Term................... 27 months

Tax Rate (not figured in this example)

Lease Payment: $446 + (tax)

In order to drop it down to the $299/month, we could up the residual value

Residual value...........67% = $297 + tax

or reduce the money factor VERY low and raise the residual slightly as follows:

Residual 60%
Money factor 2% (.00083) = $294 + tax

But in order to get down to close to that $300 per month they would have to raise the residual value WAY beyond what it would normally be AND/OR reduce the interest rate to a very low figure.

There must be some hidden costs because on a lease like that, they will be losing money on the vehicle. The lease payments wouldn't even cover the car's depreciation. Any thoughts or ideas?

danf1

$1000 origination support (rebate)
.00119 money factor
53% residual

ricwhite

$1000 origination support (rebate)
.00119 money factor
53% residual

Thanks for the info. Question:

Is that $1000 origination support (rebate) ONLY for prior Hyundai owners or is that in ADDITION to the $1000 discount for prior Hyundai owners?

Running new numbers:

Car: Hyundai Azera Limited (no options)
MSRP:.................. $26835
Base Cap Cost.......... $25500 (Good discount)
Added costs (bank fee). $ 650
Down Payment........... $ 2925
Orig. Discount (rebate) $ 1000

Adjusted Cap Cost...... $22225
Residual Value (27mo/10K) 53%

Money Factor .00119 (2.86%)

Term................... 27 months

Tax Rate (not figured in this example)

Lease Payment: $340 + (tax)

I'm obviously still missing something. Maybe the $650 acquisition (bank fee) is wrong or waived. But I'm still $40 high per month -- and that's with a fairly large discount off the MSRP. Still need some more tweaking to get to that magical $299/mo.

gschultz3

You have not provided anything to support your theory. As the precieved value of a brand improves so does the resale value! For most buyers the resle value doesn't matter since they keep their cars for longer periods of time. If you lease a car then resale value (residual value) is reflected in the cost.

ricwhite

You have not provided anything to support your theory. As the precieved value of a brand improves so does the resale value! For most buyers the resle value doesn't matter since they keep their cars for longer periods of time. If you lease a car then resale value (residual value) is reflected in the cost.

I'm not sure what my theory is. I just look at the bottom line numbers sitting on my lease forms in front of me. Azera's resale value may improve over time, but that does not help me right now with a lease. They use a "prediction" of residual value to determine my monthly payments.

For 36 month/12Kyr lease the Azera's residual value is listed at 44% . . fact. For comparison, the Acura TL residual is listed at 54% . . . fact. So it will cost me MORE to lease an Azera than a TL even though the TL has a higher MSRP. Does that make sense?

Since I am looking only at leasing for 36 months or less, I am just looking at raw numbers and the Azera is rather expensive to lease because it has a perceived LOWER residual value than most cars in its class.

Now. . . it's value MAY improve. But it's not going to help me NOW with my lease. Maybe when my lease is OVER I will notice that it DID NOT depreciate as much as they anticipated. Then I could buy the Azera based on the lease terms and probably sell it for a profit. But. . . as far as my monthly payments for next three years, the Azera is rather expensive because of the low residual value that the "experts" have determined.

However. . . this lease incentive going on right now for the Azera seems to be artificially raising the residual value and lowering the interest rate. THAT would be a very good thing and make the Azera much more competitive for leasing. That may boost Azera's ranking for leasing for me -- even against the TL. I need to look into it.

I may not be very good with explaining things. I hope this makes sense.

fin

Don't worry, your comments are very accurate. A local dealer here in Atlanta produced exactly what you have described: a lower residual value, higher payments. Have been looking at the Avalon and the Azera and the lower Azera residual wipes out the price advantage.

It might work out as you comment.. later, the resale value is higher than set in the lease residual, you make some back. But it is no help for 36 months. The problem may be perception more than the car, but again, it's 36 months. And what if the residual is correct?

If Hyundai wants to get serious about leases, they need a lease plan with a higher residual and they can take some of the risk on overvalued cars being returned at lease end. They have a good car and the best warranty, why not the best lease?

frazee

Hellooooooo...The 27 Month $299 plan is SUBSIDIZED as to both residual and to money factor. If you are looking at a 36 month plan there IS NONE, except for some outside financial institution...so you get hosed. YES.....the Azera has higher depreciation than a TL, BUT if you get the 27 month plan you do NOT get subject to it. Got it???????

I got the 27 month lease. I figured about 57% residual value, got the dealer to throw in 12,000 miles/year (I believe the set program has 10,000) and it helps to make the numbers work to realize that the $2925 includes both the first month's payment and $1,000 of dealer cash.....(which some dealers tried to pocket during January.) I am not sure if the $1,000 dealer cash is also on the table for February. Also, if you are a prior Hyundai owner you can get another $1,000 loyalty on the lease (rent one for a day and drive up in it???) :P

frazee

If you get the Ultimate Package (MSRP of $2500) they will residualize at less than the full lease program offers for the Azera Limited itself (typical with option packages). You will probably pay about 50% of that package over the 27 months.

backy

Sorry, you can't just drive a leased Hyundai to a dealer to get the loyalty rebate. You have to own the car. Now, if you could find a junker Excel or Accent that still runs for $100-200 bucks...

fin

Got it now.... but I got it here, from you and Edmunds.com, not from any dealer. This was never mentioned at the dealership, like, it does not exist. Strange. Will look into this again and see what happens. $300. per month, or a little more for an Ultimate package, plus local taxes sounds pretty good. But I also need to get them to 15k miles so that may be a little more also. Thanks.

frazee

The minute you "play" with the base deal you invite a hosing...so be careful. The base deal from Hyundai is spectacular for the 27 months for the exact car and terms. Once you begin to change it they start playing with the numbers. If you need 15,000 miles you might want to figure out what the excess charge is, divide by your lease term and if they charge you less than that extra for the miles, OK...but that is the only variable you should play with.

ricwhite

It's very obvious that the 27mo/$299 plan is highly subsidized since the Azera has one of the worst residual values in the industry and lease payments will be high without subsidy. In fact, the ONLY way a lease makes sense with the Azera is with a subsidized program.

As I mentioned earlier, I was AT a Hyundai dealership five days ago and spent about 20 minutes or so with the salesman. I specifically asked about ANY lease deals for the Azera and was flatly told THERE WERE NONE. The ONLY way I heard about this 27mo/$299 plan was HERE on this forum. I even gave my name and number to the salesman and told him to call me if ANY lease incentive surfaces on the Azera. No call.

Odd!

I'll be going back and asking about it. Without a subsidy program, however, I can't see myself paying over $500 a month for an Azera when I can get an Avalon or Acura TL for the same or less.

I appreciate the information that I get from forums such as this. Thanks!

frazee

Clearly the program exists!!

http://www.hyundaiusa.com/financing/specialoffers/special_offers.aspx

If that dealer does not know about it, or does not acknowledge it, then go elsewhere...you can get it serviced at ANY dealer. Also, there is a dealer on Ebay selling Limited with Ultimate package at under $27. Thus the $16 residual I have after 27 months is actually 60% of the price dealers are willing to sell it for...and that is with the Ultimate package!

floridabob1

The Azera sold in Germany as the Grandeur comes with tilting side view mirrors when car is placed into reverse.
Both cars are built in Korea.
Why can't the US technical staff contact either Germany or Korea to determine how to program this feature?
I'm certain that this is purely a software issue.

floridabob1

To my knowledge, the Hyundai Azera is the only automobile on the market having memory seats that requires the key to be in the ignition for the feature to operate.
This problem should be corrected immediately.

ateixeira

Hyundai is working hard to overcome the stigma of being cheap and unreliable, but it will take a while for public perception to catch up to the reality. Hence residuals will take a while to climb back up, as well.

We went to a car show and my wife liked the Azera a lot. She half-jokingly asked if we could cover the badge.

It's not enough for the product to be on par, it has to be as good for less money, until their reputation catches up with the product.

-juice

backy

Sure you can cover the badge. I just read about a guy who bought a new Civic and painted over the H badge in front because he didn't like it. And I've seen people take all the badging off the trunk lids of their cars, because they like a clean appearance.

ateixeira

Hyundai was next to Lexus, and I said, maybe we could put a Lexus badge on instead (jokingly, of course).

Funny thing is the Azera is so nice inside, most people wouldn't know.

-juice

adityag

Just spoke to a Hyundai dealer in NYC:

27 month lease with 2925 down and 595 (delivery charge ?) 12000 miles per year and 299 pm.. thats what they are advertising. Would not give any further details on the phone. This is for a limited trim base model

frazee

To make it clear....the $299 is on the "Limited" model (the more upscale of the two models offered)....but without the "ultimate" package (which is a $2500 option and for which the 27 month lease would probably tick up about $40-$50/month.)

adityag

I know this isnt the best thread to ask this question, but please help me if u can..

I ll be moving out of NY within 15 months or so.. dont know where to..so will it be a good idea to lease

(I know usually it isnt a good idea to lease if 1 is planning to move out, but this being offered by Hyundai all over US, hence the Q)

Thanks in Advance

frazee

So long as you are leasing from the auto company's finance arm, moving is not an issue at all. I am moving across country in 6 months and just got my lease. If you lease from Hyundai, you can turn in the car and get it serviced ANYWHERE. If your lease is from a bank or other financial institution that may not be the case. The only thing you may wish to check out is whether the locale you are moving to has a different (and since you are coming from NY) and lower sales tax rate, in which case you may want to make sure you do not pay your sales tax up front or finance it into your payments...but have it part of your regular payment and then make sure it can be adjusted downward when your residence changes. I am moving from NY State to WA State, so there is basically no change/difference of consequence in sales tax....but for others the difference could be 3, 4 or 5 %.

adityag

Thanks for the informative reply.. In such a case, will I have to return to NY to return the car, or it can be done at any dealerships across US?

frazee

If you lease through Hyundai (rather than through a bank or 3rd. party) you can return it to ANY dealership in the US (you can also get it serviced at any dealership while you have it leased!!)

gschultz3

Your very good at explaining your problem and I agree with you. I misunderstood that your intention was to lease the Azera. All other things being equal buy the car with the highest residual value. If Hyundai uses 44% they will not be successful if all other factors are equal.

stealth6

You got it backwards. The kia will be the cheaper line and the Hyundai will be more of the luxury type cars. The Kia Optima will have the 2.7 litre engine while the Sonata has the 3.3 litre. I bought the Sonata LE last year and I really like it. I also believe the Kia will be more of the sporty line of the two. This is why I don't understand the 2.7 six in the Optima versus the 3.3 in the Sonata. The differences between the Kia and Hyundai models is probably more different than the American cars that are similar like the Ford and Mercury.

averigejoe

If you don't need the room the Azera offers over the Acura, get the Acura. Or maybe an Infinity M.

ironman0311

Newspaper ad in Cleveland, Ohio over the weekend.

All 2006 models:

Azera MSRP $30,035

$25,535 Plus Tax, Title.
-$1000 for owner loyalty
= $24,535 Plus TX, title.

Sonata (4 Cyl) MSRP $19,480

$14,480 TX,Title (W/owner loyalty)

Elantra (Auto) MSRP $15,235

$10,745 TX,Title(W/owner loyalty)

Anyone seen/heard of any better?

gene_v

If that is with the Ultimate package its the best price I've seen. :P

fin

With the Azera "Ultimate" package option (and assuming no special extra dealer fees added on at the end)... this is not possible... is it? Is something missing? wow....