Looking at a 2024 Santa Fe, fully loaded. Dealer is offering it as a showroom model, says it’s a deal. They want $5K down and a monthly payment for a 3-year lease. Total price would be $50K. Does this sound fair or should I run?
Never put money down on a lease, it’s just not a good move.
Check out lease forums and ask for the money factor and residual for your specific trim, zip code, and lease terms (3 years, 10K miles per year).
Find out all Hyundai incentives you qualify for. Then, use TrueCar to see what kind of discount people are getting off MSRP. Subtract incentives from that to know the discount you should push for.
Now, negotiate step by step:
- Confirm that you qualify for all the incentives.
- Get at least the average discount off MSRP (more if you can).
- Verify the residual percentage—dealers can’t change this, but they might mess with it. Ask them to show you Hyundai’s lease MF/Residual sheet for your lease terms. Make sure they match Edmunds’ numbers.
- Make sure they don’t inflate the money factor. If your credit is solid, you should get the lowest rate.
I didn’t know all this when I got my first lease, but I wish I did. If you do your homework and push for a bit more off MSRP, you’ll get a solid deal.
Also, use an online lease calculator beforehand to estimate the monthly payment. Dealers love to ask, ‘What do you want to pay per month?’—if you already know a fair number, just tell them and make them work to get there.
And again, no money down. You only need to pay first month’s payment and some fees ($500 for me). That’s it.
@Wes
This is great info, thanks for the breakdown!
Zinn said:
@Wes
This is great info, thanks for the breakdown!
Glad it helps! Just learned all this when I leased my first car last weekend.
Zinn said:
@Wes
This is great info, thanks for the breakdown!
Glad it helps! Just learned all this when I leased my first car last weekend.
Super helpful. I’ve been trying to lease one for my wife, but finding the right color has been a pain. This gives me a better idea of what to look for though. Appreciate it!
I wouldn’t put $5K down either. Better to keep that money in your account and use it for payments if needed.
If you drive off the lot and total the car, you’re out that $5K. Someone correct me if I’m wrong, but that money is just gone. Instead of dropping $5K upfront, put it aside and use it for your monthly payments.
I always aim for a lease payment close to 1% of MSRP. So for a $50K car, around $500/month. No down payment, just taxes, title, and first payment.
This article explains the 1% rule pretty well:
@Hale
I got mine down to 0.91% before taxes.
1%-1.25% is the usual range, but mine was a loaner with 1,750 miles, so I got more incentives. Also helped that I closed the deal on the last day of the month—dealers push harder to hit sales goals.
No money down. Period.
And get every fee broken down—tax, title, registration, doc fees, processing fees, and whatever else they try to sneak in. Plus, they’ll push all sorts of ‘extras’ like accessories and extended warranties.
Know exactly what you’re paying for before signing anything.
To really know if it’s a good deal, check:
- Out-the-door price
- Interest rate (money factor)
- Residual value at lease-end
- Any lease turn-in fees
Get those numbers and you’ll see if it’s fair or not.
Ugh… looks like we got screwed on our deal. We leased a 2024 Calligraphy in August, put down $7K, and still pay over $700 a month.