Hyundai Iioniq Lease Deals and Hyundai Ioniq Electric Lease Deals
It is a good starting point to think of leasing a Hyundai Iioniq as being somewhat like a rental arrangement. There are differences, and potentially a number of different areas of cost management to be considered.
However, with a bit of research and diligence leasing an Hyundai Iioniq can be a really effective way of acquiring a new Hyundai at a price that otherwise would not be affordable.
Getting the best Hyundai Iioniq deals involves an understanding of the language and structure of how companies such as hyundai Motor Finance offer financing arrangements and leasing deals on all their vehicles.
The most important things to consider is how a lease arrangement works, the various financial figures involved, the issue of incentives and rebates and whether or not it is worth leasing a slightly older model of the Hyundai Iioniq .
Hyundai Iioniq – How Leasing works
This is a very quick overview of how the leasing process for a Hyundai Iioniq works.
The customer agrees to lease the vehicle from Hyundai motor Finance, for a fixed period of time, normally anything between one and eight years, and agrees to pay them a monthly figure for this leasing arrangement.
During the lease there will be a specific mileage allowance, with additional mileage charges and any excess mileage incurred at the end of the lease period.
At the end of the lease period the manufacturer, in this case Hyundai, will assess the condition of the vehicle, normally through a third-party agent, who will make a recommendation as to its condition.
If it is considered that there is excess wear and tear then certain charges will be levied on the customer that are considered necessary to bring the vehicle up to a condition appropriate with its age and mileage.
The customer at this point can either walk away from the vehicle, agree a new lease arrangement on another new vehicle, or possibly agree to buy the vehicle that he had the original lease on.
If purchasing a vehicle, then the excess wear and tear fees would normally be waived.
That will normally be a penalty of some type financially for early termination of the lease arrangement.
Hyundai Iioniq – Leasing a Used Vehicle
People sometimes wonder if there is any value in leasing a second-hand or used Hyundai Iioniq .
There is sometimes an assumption that this might be cheaper leasing a new vehicle. In reality leasing cost of a new vehicle is based to a large extent on its depreciation value from when it is new, which is largely in its first year.
This means that leasing a vehicle that is more than a year old does not really make a huge amount of sense from a financial point of view, given the chief benefit in this vehicle is in the fact that the customer is getting a brand-new vehicle, with benefit of warranty etc.
Hyundai Iioniq – Make-up of Leasing Charges
There are a number of different costs make up the overall charge any leasing arrangement.these are to an extent determined by the manufacturer, in this case Hyundai, by the dealership and by the credit score of the individual seeking the lease arrangement.
The starting point is what is known as the base MSRP. This is essentially the list price that the manufacturer would put on the vehicle if it were for sale, which in reality would be negotiated downwards by any prospective customer.
However it is a baseline for most leasing arrangements.
Added to this will be the total of any options the customer wants to include with the vehicle. These two figures when taken together are sometimes referred to as the estimated capitalised cost.
This simply means the figure before any additional costs and any additional rebates or incentives are taken into account. It could be thought of as a gross figure.
The other figure often referred to is an adjusted capitalised cost, and is really a net figure once the total of all costs and benefits have been taken into account and added or subtracted to / from the cost.
Other charges that may well be added to the estimated capitalised costcan include things such as a destination charge, an acquisition fee, a delivery charge, a document fee, taxes, the vehicle title and its registration.
Things such as an acquisition fee and a document fee are simply admin costs and should be clearly stated in any documentation before signing.
Some dealerships use these admin costs as a way of covering certain discounts or incentives that they make in order to balance out their own numbers, and as such all of these costs should be scrutinised and negotiated down where possible.
Hyundai Iioniq Insurance – it will be the customers responsibility to ensure that proper insurance is arranged on the vehicle, and the Hyundai dealership will need to have proof of this prior to the vehicle being released after any leasing arrangement is made.
Insurance can sometimes be arranged through the dealership, or by the customer themselves individually. This will always be a condition of any lease arrangement that is signed.
Hyundai Iioniq – Down Payment
When leasing a Hyundai Iioniq, the structure of the arrangement is that the customer pays a down payment on the vehicle, which determines the level of monthly payments thereafter.
The higher the down payment, the less the monthly payment should be in order to reflect this. It is also possible a customer may be required to make a higher down payment than would otherwise be the case if they had a poor credit rating.
Net trade-in value
The other thing that can determine the leasing costs for a Hyundai Iioniq is if there is a trading in of an existing vehicle. This normally refers to a vehicle that customer owns and wants to trade in against leasing a new vehicle.
It should be borne in mind that the trade-in value to a dealership will normally be significantly less than if they were to sell the vehicle privately. This trade-in value can also sometimes refer to a a vehicle that the customer has already leased and is coming to the end of the lease agreement.
Hyundai Iioniq – Finance offers
A lot of focus is often puton the finance offers that are made available to potential customers.
Some of these will be made by the manufacturer in this case Hyundai Motor Finance at a national level. Some will be made by the local Hyundai dealership, and some will be determined by both.
All finance offers that are made will be subject to the credit status of the individual applying for the lease arrangement.
The most common finance offers tend to fall into two categories. There is normally a cash sum or a cash rebate offered if a long lease period is arranged, normally the maximum length that the company will permit at the time.
There is also likely to be an offer of zero or low interest rates on a certain period of the leasing arrangement if a long lease period is arranged.
There is also likely to be an offer to sometimes defer the first three months of any financing costs, subject to the length of the lease period itself.
Hyundai Iioniq – Incentives
Incentives are the way that Hyundai make clear their commitment to certain groups of customers, either by way of a social conscience or by way of attracting customers who are now likely to keep in the long-term.
Some of the most current groups of customers who are offered incentives include : first responders, students, farmers and the military.