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Lease Cash Explained?

mjdaughmjdaugh Member Posts: 6
edited February 2018 in Hyundai
What is lease cash? Thanks

Answers

  • kyfdxkyfdx Moderator Posts: 260,647
    mjdaugh said:

    What is lease cash? Thanks

    On a Hyundai, it's a consumer incentive.

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  • mjdaughmjdaugh Member Posts: 6
    Does it reduce the cap cost? Is it something that would show up on the sales contract? I guess what I'm trying to figure out is how would I know that I'm getting the $4,000 lease cash on the Elantra sport? Thanks.
  • kyfdxkyfdx Moderator Posts: 260,647
    mjdaugh said:

    Does it reduce the cap cost? Is it something that would show up on the sales contract? I guess what I'm trying to figure out is how would I know that I'm getting the $4,000 lease cash on the Elantra sport? Thanks.

    Yes, it should be on the contract as a CAP reduction.

    But, factory-to-dealer incentives won't show up. That should just result in a lower selling price.

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  • evrevolutionevrevolution Member Posts: 4
    I am using an Excel spreadsheet that calculates leases, and it does not currently have either a "Lease Cash" or "Customer Incentive". I am using this to help buy a Chevy Volt, where both Lease Cash and Customer Incentive are key attributes of any lease. How do I model these concepts in the spreadsheet?

    The spreadsheet has a section that is for "Capitalized Cost Reductions". Do both Lease Cash and Customer Incentive represent reductions of the capitalized cost? If not, where do they go in the calculation, generally speaking?

    Assuming the car you want to buy qualifies for the $7500 federal tax credit, and the financing arm of the car company is willing to give you 50% of this, where do you model that in the lease calculation? Does this become an additional capitalized cost reduction?

    For a Chevy Volt, is the federal tax credit being given through either the Lease Cash or Customer Incentive?
  • MichaellMichaell Moderator Posts: 258,758

    I am using an Excel spreadsheet that calculates leases, and it does not currently have either a "Lease Cash" or "Customer Incentive". I am using this to help buy a Chevy Volt, where both Lease Cash and Customer Incentive are key attributes of any lease. How do I model these concepts in the spreadsheet?

    The spreadsheet has a section that is for "Capitalized Cost Reductions". Do both Lease Cash and Customer Incentive represent reductions of the capitalized cost? If not, where do they go in the calculation, generally speaking?

    Assuming the car you want to buy qualifies for the $7500 federal tax credit, and the financing arm of the car company is willing to give you 50% of this, where do you model that in the lease calculation? Does this become an additional capitalized cost reduction?

    For a Chevy Volt, is the federal tax credit being given through either the Lease Cash or Customer Incentive?

    The "lease cash" is a dealer incentive, which will result in a lower selling price.

    The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)

    When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.

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  • evrevolutionevrevolution Member Posts: 4
    Michaell said:


    The "lease cash" is a dealer incentive, which will result in a lower selling price.

    The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)

    When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.

    How will I see "Lease Cash" on my leasing proposal? Will this be embedded into the dealer's offer price to me, so in effect, I never see it as a line item at all?

    Regarding "Customer Incentive" will this appear in the list of Capital Cost Reductions as a line item? Is there any other phrase that might be used here instead of "Customer Incentive"? Maybe this is labeled as "Customer Rebate" or "Incentive Rebate" or other similar terms?

    Hiding the partial return of a tax credit in the residual value is very sneaky. If they do share it as an incentive, would it be itemized as a Capital Cost Reduction?

  • kyfdxkyfdx Moderator Posts: 260,647

    Michaell said:


    The "lease cash" is a dealer incentive, which will result in a lower selling price.

    The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)

    When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.

    How will I see "Lease Cash" on my leasing proposal? Will this be embedded into the dealer's offer price to me, so in effect, I never see it as a line item at all?

    Regarding "Customer Incentive" will this appear in the list of Capital Cost Reductions as a line item? Is there any other phrase that might be used here instead of "Customer Incentive"? Maybe this is labeled as "Customer Rebate" or "Incentive Rebate" or other similar terms?

    Hiding the partial return of a tax credit in the residual value is very sneaky. If they do share it as an incentive, would it be itemized as a Capital Cost Reduction?

    If it's a factory-to-dealer incentive, you won't see it in your deal. It will just be part of the selling price.
    If it's a factory-to-customer incentive, then it will be listed as a CAP cost reduction.

    There is no tax credit for you on a lease. Just work with the numbers you have.

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  • DuizzleMyNizzleDuizzleMyNizzle Member Posts: 5
    How does knowing the lease cash help me negotiate a deal?
  • MichaellMichaell Moderator Posts: 258,758

    How does knowing the lease cash help me negotiate a deal?

    For Hyundai, it's a consumer incentive that works like a down payment, on top of any discount you negotiate.

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  • johnedmundsjohnedmunds Member Posts: 26
    Michaell said:

    How does knowing the lease cash help me negotiate a deal?

    For Hyundai, it's a consumer incentive that works like a down payment, on top of any discount you negotiate.
    Same for VW?
  • MichaellMichaell Moderator Posts: 258,758

    Michaell said:

    How does knowing the lease cash help me negotiate a deal?

    For Hyundai, it's a consumer incentive that works like a down payment, on top of any discount you negotiate.
    Same for VW?
    VW is a factory to dealer incentive, and will result in a lower selling price. Dealer not required to disclose; it's up to you to determining be the best price.

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  • LIcardriverLIcardriver Member Posts: 5
    How does lease cash work for Kia?

    thanks!
  • MichaellMichaell Moderator Posts: 258,758

    How does lease cash work for Kia?

    thanks!

    Customer incentive, works like a down payment.

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  • erand881erand881 Member Posts: 38
    Does lease cash work like down payment with Buick/GMC?
  • MichaellMichaell Moderator Posts: 258,758
    erand881 said:

    Does lease cash work like down payment with Buick/GMC?

    Yes

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  • GideonGideon Member Posts: 25
    edited December 2019
    Does lease cash work like a down payment with Audi financial? Audi also offers a dealer market allowance. How does that affect my sale price offer? If they offer a 1K allowance does that make my 35K offer actually 36K on the paper work, for example? Thanks
  • kyfdxkyfdx Moderator Posts: 260,647
    Gideon said:

    Does lease cash work like a down payment with Audi financial? Audi also offers a dealer market allowance. How does that affect my sale price offer? If they offer a 1K allowance does that make my 35K offer actually 36K on the paper work, for example? Thanks

    Yes, Audi lease cash is a customer incentive, applied as a CAP cost reduction

    The dealer market allowance is money to the dealer, which should hopefully result in you negotiating a lower selling price. But, that's it. You don't see it in the paperwork.

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  • wespt1922wespt1922 Member Posts: 12
    How is lease cash handled on a mazda?
  • MichaellMichaell Moderator Posts: 258,758
    wespt1922 said:

    How is lease cash handled on a mazda?

    It's a customer incentive, treated like a down payment.

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  • hondakid000hondakid000 Member Posts: 32
    How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?
  • hondakid000hondakid000 Member Posts: 32

    How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?

    And can I use lease cash as a down payment?
  • MichaellMichaell Moderator Posts: 258,758

    How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?

    And can I use lease cash as a down payment?
    Lexus lease cash is a customer incentive, and is applied like a down payment on the paperwork.

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  • Abhi12Abhi12 Member Posts: 18
    For Ford, how do they work? Are they a customer incentive taken off the sale price that works like a down payment?
  • MichaellMichaell Moderator Posts: 258,758
    Abhi12 said:

    For Ford, how do they work? Are they a customer incentive taken off the sale price that works like a down payment?

    That is correct.

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  • CfonCfon Member Posts: 3

    Hi,
    I am trying to understand a Lexus lease cash incentive deal that is currently going on.

    The deal is: 2025 NX 450h+ AWD $559 per month, for 36 months and $3,999 due at signing

    Then it also notes, “Lease includes $9,000 Lease Cash incentive and excludes tax, title, license, and dealer options and charges.”

    So would this lower my monthly payments more or does the $559 per month deal already include the $9,000 lease cash?

    Thank you!

  • kyfdxkyfdx Moderator Posts: 260,647
    Cfon said:

    Hi,

    I am trying to understand a Lexus lease cash incentive deal that is currently going on.

    The deal is: 2025 NX 450h+ AWD $559 per month, for 36 months and $3,999 due at signing

    Then it also notes, “Lease includes $9,000 Lease Cash incentive and excludes tax, title, license, and dealer options and charges.”

    So would this lower my monthly payments more or does the $559 per month deal already include the $9,000 lease cash?

    Thank you!

    “Lease includes $9,000 Lease Cash incentive

    Seems like they answered your question

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  • SpaceNurseSpaceNurse Member Posts: 7

    I recently asked for Residual Value and MF numbers on another thread for a Hyundai Santa Fe Hybrid. They also included that there is $1500 lease cash. I know it has been said that for Hyundai this should be a consumer incentive that shows up as something reducing the capitalized cost, like a down payment. When should I expect to see this at the dealership? When we are initially negotiating selling price? If I don't see it, should I ask about it then?

    Thanks for the help

  • MichaellMichaell Moderator Posts: 258,758

    I recently asked for Residual Value and MF numbers on another thread for a Hyundai Santa Fe Hybrid. They also included that there is $1500 lease cash. I know it has been said that for Hyundai this should be a consumer incentive that shows up as something reducing the capitalized cost, like a down payment. When should I expect to see this at the dealership? When we are initially negotiating selling price? If I don't see it, should I ask about it then?

    Thanks for the help

    It will be on the contract paperwork; negotiate your best price, knowing that the incentive will be taken off that number.

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  • SpaceNurseSpaceNurse Member Posts: 7
    edited December 2024
    If I don't see it on the quote and they're claiming they don't have any lease incentives, what should I say? I appreciate the guidance, thank you!
  • kyfdxkyfdx Moderator Posts: 260,647

    If I don't see it on the quote and they're claiming they don't have any lease incentives, what should I say? I appreciate the guidance, thank you!

    I'm looking at your question, and I don't see where you asked for the hybrid

    Maybe, go back to the discussion, and ask again?

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  • SpaceNurseSpaceNurse Member Posts: 7
    kyfdx said:

    If I don't see it on the quote and they're claiming they don't have any lease incentives, what should I say? I appreciate the guidance, thank you!

    I'm looking at your question, and I don't see where you asked for the hybrid

    Maybe, go back to the discussion, and ask again?
    Indeed, nice catch. I actually already asked again with all the correct information, I assume that's what I was missing! Thank you very much.
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