Lease then buy-out or finance?

  • Last Updated:
  • Jul 6th, 2017 7:10 am
Jr. Member
Dec 15, 2007
183 posts

Lease then buy-out or finance?

Leasing gurus, I need your help as I am horrible at maths.

Right now, Hyundai has a 33 month maintenance included lease deal going on.

Let's say I go for the base Tucson AWD which has a leasing bonus of $1500 at 0% = total price comes to $27,419.00 (tax NOT included) and monthly lease payment of $403.34 (tax in). Total of $13310.22 lease payment...

Financing it at 0% for 84 months will come out to $28,169.00 (without tax) and $32,387.31 (tax in) with monthly payment of $385.56 (tax in) ..

How do I figure out the residual from this? or is it set by the dealer at certain percentage? In which scenario will I come out ahead? MUCH appreciated!
3 replies
Deal Expert
Aug 22, 2011
28040 posts
Residual is set by Hyundai and you will not be ahead by any means.
Sr. Member
User avatar
Nov 7, 2007
965 posts
Portage la Prairie
Easy answer is you will never get zero percent financing on the residual balance after the lease.
Jul 8, 2017
4 posts
It depends on your own situation. for this situation, the incentive is higher on lease, there is less commitment, the rate is the same and there is only pre paid maint on leasing. As a rough idea of residual take the all in price minus your payment * 33 (in this scenario) should come up to roughly $16600. You can do this because the interest rate is 0%.

Keep in mind very few people keep their cars for 7 years. You trade it in 3-4 years down the road on a 7 year finance and your depreciation is more then your trade in value and you're in the hole. On a lease, you do not have negative equity 3 years from now. Flip side, if your current car is covered in scratches and damage / your current KM per year is unknown.. probably shouldn't lease.