Automotive

Hyundai Elantra 2017 - First Time about to Lease - Having stress

  • Last Updated:
  • Jun 23rd, 2017 11:40 am
[OP]
Sr. Member
Nov 30, 2012
572 posts
355 upvotes
MONTR

Hyundai Elantra 2017 - First Time about to Lease - Having stress

Hey everyone, So I finally decided to stop searching for used cars and thinking about leasing an Elantra GL Auto, however having stressful thoughts about many things and hopefully you guys can clear things up for me.
I'll start with the pricing.

20,000km per year, leased for 48 moonths.
Bi weekly payment - 121 $ , 121 x 26 = 3146 / 12 = 262.16 $ per month
2000 $ dealer discount included
0 % interest

Other charges which I think are completely absurd.
Delivery and destination - 1705 $
other tax and levies - 614 ( anyone have an idea what this is ? )
Admin fees - 499 $ ( I was told they can't do anything about this, is this true ? )


Other questions I have ...

Is it better to finance the car at 84 months 0 % interest ? ( I mean you are paying 1705 delivery charges, either you lease or finance, it's a completely waste )

When the car is leased, do you have to bring the car for regular maintenance at the dealership ?
Do they charge you for bringing it in for maintenance ? Or this is covered because the car is under warranty ?

When the car is returned at the 4 year period, I was told there are charges of 399 $ to get the vehicle inspected, is this true ?

Also, when the car is returned, and it has minor damages, such as brakes worn out, tires are completely finished, paint chip, scratches, etc ..
I am sure I will charged all sorts, including the pre-inspection fee of 399 $. Let's say the car has 2000-3000 $ of damages, is it better to just buy the car outright ?

Do the provide lease wear protection or something like that for issues like this ?
And are these protection packages negotiable ?

When you finance the car at 0%,
They have this term :
Financing
For information purposes only, a cash purchase incentive is not available to customers who lease or finance. The credit rate is 0.76%. It is based on the value of the cash purchase incentive foregone by financing or leasing. The nominal interest rate for 0% is based on the interest charges only. The credit charge is $653.00.

Does this mean I am still getting charged interest on the financed car ?

Is it better to leave a down payment on a lease ? Why yes, why no ? Lets say 5000 $, This is something you will get back right ? Or will you get screwed over after the 4 year lease ?


Once again I thank all you for answering my questions.
I apologise beforehand if its too much to answer, I just do not want to stress over this car.


Thank you again !
6 replies
Deal Addict
Jan 15, 2017
2154 posts
1483 upvotes
Not much you can do about delivery and destination. Every dealer passes the cost to ship the vehicle to the dealer on to the customer. The other taxes are levies are usually things like gov't fees. You should have an itemized list of these.

When you lease a car, you are only paying for your use of the car and not the full purchase price. You are only paying a portion of the delivery fee.

Maintenance is not automatically included with a leased car and is necessary to meet the warranty requirements. It doesn't have to be done at the dealer, but it will need to be done by a certified mechanic for warranty purposes.

Who told you that there was a $399 at lease end to inspect the car? Most finance arms provide this free of charge. Perhaps you are confused with a charge to buy-out the lease?

Yes, you will be offered lease protection. It covers damage that is outside the allowable limits on the lease. The financing manager will explain this to you.

As for 0% financing, what they mean is that you forgo a cash incentive (discount) when you take 0% financing. As this is considered a cost of borrowing at 0%, they are required to provide you with the APR for this cost. In this case, it is 0.76%.

You do not get a down payment on a lease returned at the end of the lease. You may get a security deposit returned, but never a down payment. The down payment reduces your monthly payments.
Member
Feb 19, 2017
320 posts
133 upvotes
Price out the exact vehicle configuration on the Hyundai website to see how good or bad the dealer price is. Make sure to include PDI and taxes in the calculation (usually you just have the check the right boxes on the manufacturer's website).

I aim to pay 0-3% above the dealer invoice price minus incentives. The incentives usually come from the manufacturer, not the dealer. So if the vehicle's MSRP is $19K, invoice price is $18K and there's a $2K incentive, you could go as low as $16K if you're playing hardball. Some have even had success getting below invoice (plus incentives), but that's unlikely.

You might get somewhere on the admin fee, but not so much on the PDI.

Maintenance is not included, but you can ask the dealer to sweeten the deal with say free oil changes for a year or two. Some already do it without any negotiation (Chevy will give you four oil changes free with a new Cruze, for example). This sounds nice but it isn't a huge deal - oil changes and tire rotations are among the most inexpensive maintenance done on the car, and with most vehicles is done multiple times a year. Maybe a $200-$250 value.

If you're leasing, consider gap insurance. Once you drive off the lot the car loses 10-25%. If you immediately total the car, insurance only covers the market value but you're still on the hook for all lease payments. Gap insurance covers the difference in market value and remaining payments. Don't buy it through the dealer though as it's super expensive - get it tacked on to your regular insurance.

Be circumspect of all the plans the dealer tries to sell you. Things like rust proofing, extended warranties, etc. are major profit centres for dealers and often unnecessary, especially in a lease. If one of them interests you, try to negotiate a better price. Just like a car - even moreso, actually - these prices are negotiable.

If you have winter weather, consider winter tires mounted on a set of steel wheels. Winter tires often reduce insurance rates, and also means the all-seasons that come with the car will wear less quickly since they're not used all year. Overall having the two sets of tires is somewhat more expensive, but definitely worth it IMO for safety reasons.

When you lease, you don't own the car. You'll want to take good care of it so that you're not hit with wear charges at the end of the lease. Make sure you get scheduled maintenance done on time, and keep it clean and presentable.

If you don't think there should be a lease termination charges, ask them to remove them. They might or might not.
Deal Addict
User avatar
Aug 17, 2004
2149 posts
30 upvotes
Toronto
Your text to link here...There is another thread that discusses the details of lease deal 210$/month. IAlso I suggest getting wear and tear pkg , it only adds 20$ month and gives you piece of mind when returning car
"Our lives are defined by opportunities. Even the ones we miss."
Deal Addict
Jan 8, 2007
2255 posts
747 upvotes
Calgary
Are you saying the payment is 262/month with $2,818 down? (all the fees you mentioned, or are those rolled into your monthly payment?)

If you have to pay those up front, your lease payment is essentially $320/month equivalent. That is not a very good deal. I would look for a dealer that doesn't have fees. They do exist. When shopping for my Honda I found big city dealers had up to $1300 in fees, while ones in smaller towns had fees under $300 for the same thing.

Other suggestion: Never put money down on a lease, unless it buys down the rate. But it's at 0% so don't do it. Put the 5 grand in the GIC if nothing else.
Sr. Member
Dec 16, 2014
808 posts
417 upvotes
Easter Island
maintenance is very cheap on new elantras, don't worry about that.

that $499 admin fee is absolute BS.
Newbie
Nov 24, 2012
62 posts
16 upvotes
TORONTO
Current promotions are better than just invoice pricing promotion (that was in place for May) and given that, the price that you were quoted for GL seems little too high (assuming down payment is not $0).

Towards the end of May (with invoice pricing promo) I leased a 2017 Elantra SE for 39 months (20,000 kms/year) with $0 down and the payment is $158 bi-weekly (taxes included and excess wear and tear included). No dealer was willing to go lower than this for SE trim. Wear and tear package was $699.

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