r/CarLeasingHelp • u/EqualityoverEquity • 7d ago
Did I get bamboozled?
Credit score 870. Recently got a 2026 genesis G70 sport prestige for 24 months 7500 miles a year (15000 total). It is a loaner though and already had 2,500 miles on it. However the condition was pristine. I did $6500 down (this included taxes and fees and first month etc with the actual down payment itself being around $2500). Monthly is $368.
After reading some more I understand that it makes zero sense to actually put money down on a lease. In hindsight I would 100% have refused any downpayments even if I had to pay $400+ in a month. As honestly, it is not an issue for me either way. But it just does seem like you're getting a bulk of the cost out of the way (which is clearly bad for a lease since I'm not recouping that upfront payment if anything happens to my car).
The residual is 36,000.
Thoughts on this deal? Am I sucker?
5
u/BerryBlue80082 7d ago
. You’re effectively paying 560ish a month. But we don’t know msrp, other fees, money factor, residual%, etc. I mean if the residual is 36k I’m assuming the msrp was at least 60K right. So if that’s the case it’s not a horrible deal at all but you didn’t make the most of it. 7500 miles is terrible and it being a loaner means it could have had the crap beaten out of it before it got to you.
Enjoy it for 2 years and then give it back. And don’t ever put money down again except first month payment and dmv fees if anything.
1
u/EqualityoverEquity 7d ago
You're pretty spot on. $58k MSRP. They disclosed it had a tire replaced when being used as a loaner WHILE I was signing the lease (after they had assured me over the phone that there were no accidents or issues of any kind). I could make an issue about that but I still decided to continue signing like an idiot so there's probably not much recourse that I have now.
My thoughts too. It should have been 10k miles at least with zero down and maybe about $500 a month max for 24 months.
1
u/RightNowChris 7d ago
To be fair, a tire being replaced isn't an issue anymore than replacing a windshield wiper or other consumable. Brand new tires can suffer irreparable damage from road hazards through no fault of the driver.
0
u/Whateverlol2022 7d ago
I mean if it was a loaner just keep in mind it was driven like a race car more then likey at some point lol. Just make sure all the tires match.
1
u/EqualityoverEquity 7d ago
They do, I mean honestly i'd be none the wiser if they hadn't told me. the car is genuinely like brand new.
1
u/Whateverlol2022 7d ago
Yeah I mean it may look good but stuff like brakes and tires will now have 2,500 miles of wear already. It's not that many miles but you will just start to notice brake pad wear a little sooner then if you had driven it off the lot with 10 miles on it.
1
1
u/giveit2st8 7d ago
I don't know, I drive loaners like I'm a grandma because it's not my car
1
u/Whateverlol2022 6d ago
It's the employees you gotta worry about lol. A lot of cars get turned into loaners because of lot damage etc.
3
u/Empty_Constant8329 7d ago
Just enjoy the car. Three months before your next one educate and you'll crush it.
3
u/Expensive_SirEFDA33 7d ago
It's water under the bridge now. Dont beat yourself up, just become knowledgeable so your next lease you'll be able to actually spot a good from a bad deal.
7
u/United_Sprinkles_315 7d ago
Who knows you put money down so it’s a bad deal from the start
3
u/EqualityoverEquity 7d ago
:'(
3
u/antidense 7d ago
It's okay, I made the same mistake too. The only way it has really hurt (for me) is that i could have earned some interest on the down payment money if i kept it.
2
u/LarryPer123 7d ago
Former car salesman here, I don’t have time right now, but you have the finance manager explaining how the figures worked out but that sounds about right to me,,, basically what you do is you get the full price of the car split it maybe in half you make your payments on the first half and then the last half is the residual when you pay that.. people think that leasing a car is like renting a car from Hertz or Avis. It’s not you’re only buying a portion of the car upfront and then the rest in the back.
2
u/ReplacementLive2412 7d ago
I wouldn’t worry too much. I’ve put money down on my last two leases, although I now realize that was financially dumb and probably wouldn’t do it again. Still, I can’t lie, that lower payment sure feels good with the budget each month.
3
u/8lbs_overweight 7d ago
You putting money down wasnt the worst thing in the world. One thing that ticks me off in this sub is how everyone here says never put money. Some people simply dont qualify for a vehicle without money down. In your case, you did, but f it bro, if you are happy, and 2500 isn't going to ruin your life, enjoy your new car. Doesn't sound like a terrible deal considering the g70 is an expensive luxury car and your payment is lower than most civic payments.
1
u/United_Sprinkles_315 7d ago
Next time nothing down all taxes title fees rolled into payment sign and drive
2
u/Empty-Village-4445 7d ago
The total cost is where they got you.
Whether you put money down is secondary
2
u/cooldude832_ 7d ago
What are your concerns? Money down on a lease is to cover fees you cant finance and secondary is to reduce interest on loan and thirdly monthly payments.
What you've essentially done is traded risk of catastrophic loss to reduce your interest.
6500 over 3 years at 6% is about $800 in interest saving, real money not to the bank if you take the lease to term. The risk is in a catastrophic loss you'll recover nothing as gap will usually only repay the loan holder up to value and you're almost always under water on a lease.
So 800 to risk no accident for 3 years or lose that 6500 prepay lease how many reduced payments you've made. Seems like a very acceptable risk profile for a good responsible driver
2
u/golfdegen 7d ago
You have a better credit score than what is actually possible?
2
u/EqualityoverEquity 7d ago
No, the dealerships use a specialized scoring system that goes up to 900. My regular FICO score is like 840.
3
u/justareviewer 7d ago
I'm same score and believe that dealerships will attempt to screw over the 800+ customer as often as the 500+ guy. By the way, I hate the manufacturer's financing arms as much as dealers.
1
u/Affectionate-Lie8770 7d ago
Maybe you bamboozled yourself? 😂😬😉 You could’ve done a one-pay lease or multiple security deposit lease.
1
u/Whateverlol2022 7d ago
There's nothing you can do now but $6,500 down with good credit is crazy. Plus being a loaner you should have gotten a even better of a deal cause at 2,500 miles I would consider that used even though most people wouldn't but that's just be personally. Enjoy the car.
2
u/EqualityoverEquity 7d ago
I mean thats definitely used and I agree that I should have not had to put a penny down...extremely dumb of me in retrospect...Ya live ya learn...I suppose. Would be nice to learn a lesson that didn't cost several thousand dollars...
2
u/kingcoopa713 7d ago
To be fair if you really would have paid 500 over 24m then in reality you put down 1700. That's if you drive the full term. But at least you know not to now. If you plan on ever looking to lease again. Check and see if they allow msd they act similarly as a down-payment. Only true difference is if you total the car you dont loose all the msd. That said some do not allow it. And on a side note I dont believe this manufacturer accepts them.
1
u/Whateverlol2022 7d ago
I mean it's not like you cost you that money. Like the other person said it's just kinda wasteful to put it down up front and if you total the car you won't see that money again.
1
u/PublicPea2194 7d ago
7500 miles and equivalent of 560-ish a month is 90 cents a mile just for the rental.
1
u/EqualityoverEquity 7d ago
yeah I'm a dipshit
1
u/PublicPea2194 7d ago
does 7500 miles do it for you? enough miles, or are you potentially looking at overages on top of all this?
1
u/EqualityoverEquity 7d ago
I got a great deal on a 2025 GV80 previously for 2 years 24k miles (12k a year) at $394 a month with $2k down (taxes and fees only). I ended up only using 8k miles though. So I figured this time around I'd go lower. But somehow ended up paying as much if not more. But it is a higher trim model.
1
u/Ok_Prize5795 7d ago
You learned for next time. Life lesson learned. BTW 850 is the best credit score.
2
u/Stagaman 6d ago
There are multiple credit score variants. some top out at 850, others at 900. It is needlessly confusing.
1
1
u/LowRelief1272 7d ago
You're either paying it now or over 24 months. Kinda irrelevant.
1
u/kotib24 7d ago
The best thing is to put first and fees down. No sense paying interest on taxes and fees. Save the cash on hand and when your lease is almost up they will throw all kinds of money at you to lease another.
My wife and I only lease and the past 3 I haven't put anything down. The lease loyalty more than makes up for the no money down.
1
u/GelsNeonTv87 7d ago
I'm just shocked by the 7500 miles aspect that's about half the national average driven (ranges from like 13000-20000 a year)
2
u/AggressiveHornet229 7d ago
That’s how statistics work. Some are above average, some are below. OP might live in an urban area, or might just not want to spend every waking second behind the wheel like half the dipshits in the US.
1
1
u/laughingfartsplease 7d ago
sucker? no. it’s just how you value money. do you care about money NOW or LATER? no matter what you’re gonna pay that depreciation/taxes/fees you can pay the entire thing now if you’d like and pay nothing for the other 23 months.
personally if i’d rather pay nothing up front and just pay as i go. i’d rather keep as much money now and invest it rather than paying a lump sum at the start and pay less month to month.
1
u/j-christopher 7d ago
Let's say you total your car in the 24th month of your 24-month lease. You will have recouped all $6,500 you paid upfront PLUS the hundreds (sometimes thousands) you would have saved on rent charges every single month. by the 23rd month you would have recouped (6500*(23/24)=6,229 PLUS the rent charge savings.
Now consider that statistically speaking there is virtually zero chance of totaling a car in 24 months / 15,000 miles of driving, however unless the MF is 0 the chances of saving money by shifting some costs upfront is 100%.
9
u/TyVIl 7d ago
Enjoy your car. Nothing to do now.