Frequently Asked Leasing Questions

A: We recommend as little as possible but keep in mind that every $1000 down will reduce a 36 month lease payment about $28-$30 dollars a month. The lease payments quoted above are for Tax Free Leases (see Paragraph 4) with no money down. Your first payment on a lease is due at signing. So, if you choose to lease a 2016 Tucson Sport with payments of $359, you will only need to bring $359 when taking delivery and you will have 35 remaining payments of $359.

A: A common misconception is that high mileage drivers shouldn’t lease. This could not be further from the truth. Choose the mileage you will drive, and pay accordingly. When you lease a vehicle, you are only paying for the portion of the vehicle you will use. All too often we see customers who financed a vehicle with little down for 72 months or longer. Then they drive 60,000 miles in the first three years and when they want to trade, but they owe $10,000 more than the current value and simply can’t trade out of their vehicle. They should have leased the vehicle for 3 years, 60,000 miles, and walked away at the end. Leasing has become popular as customers learn it is possible to have a 60,000 mile lease and never go out of warranty due to Hyundai’s 5-Year/60,000 mile bumper to bumper limited warranty.

A: Simply choose your mileage based upon your actual driving habits. Don’t choose a 10,000 mile a year lease when you know your drive 15,000. Be honest with yourself and choose your mileage wisely. To purchase extra miles up front, Hyundai charges you just 15 cents per mile for anything over 15,000 miles per year. If you want a 16k miles per year lease, the extra 1000 miles per year will only cost you about $12.50 more per month. Do you need a 20,000 mile per year lease? 5000 more miles per year would be 5 x $12.50 or $62.50 more per month. This is a small amount to pay to put 60,000 miles on a vehicle in three years. If you go over the mileage of your original agreement, Hyundai charges you 20 cents per mile at the end of the lease. You should assess your mileage usage quarterly. If you realize you will drive 12,000 miles per year instead of the 10,000 on your contract, you should calculate the penalty and pay monthly as you go. As an example, 2000 extra miles per year will cost you $400 per year. That means you should remit an additional $33.33 a month so you won’t have a penalty at the end of your term. Don’t bury your head in the sand and pretend you haven’t gone over your mileage. Manage your finances responsibly. Again, choosing wisely upfront is important, but if you realize you underestimated your usage, do the smart thing and pay as you go.

A: Right now there is a Tax Free lease available to Texans on the 2016 Hyundai Tucson. Hyundai has built up a bank of tax credits in Texas and for a limited time Hyundai is passing those credits on to the consumer. What it means to you on a $25,000 Tucson is you save a little more than $1500 (6.25%) by not having to pay sales tax. The $1500 in savings lowers a 36 month lease payment approximately $42-$45 dollars per month compared to a non-Tax Free Lease. This is a very limited-time offer and is subject to expire by the end of the month. Again, this is a limited time offer and is over when the bank of tax credits have been utilized. Hyundai has offered the program for the month of February only and it is subject to terminating early when the credits are exhausted. An additional benefit to a tax free lease: If you choose to purchase the vehicle at the end of the lease, you will then be charged sales tax based up the lease-end purchase price and not the original price when new. With a traditional lease, you pay your taxes at time of delivery, and a second time if you choose to purchase it at the end.

A: That’s true only if you use it for business, such as a Taxi cab, commercial delivery, etc.. In Texas, if you use your leased vehicle for business (not coming and going to work) you will be charged a personal property tax and the amount varies from county to county. However, most counties allow you to sign a personal use/non-business use form which will exclude your vehicle from personal property taxes. Harris county allows this exemption and DOES NOT charge you a personal property tax. Contact your local county appraisal district office to determine whether they allow exemptions. If they don’t, you might consider voting them out of office during the next election! 🙂

A: With a lease through Hyundai, when your vehicle is wrecked, you should have the repairs performed by a reputable body shop. (Who wouldn’t?) Your insurance company should recommend several. As long as the repairs are performed within industry standards, you will not be held liable for any diminished value. Leasing companies such as Hyundai understand accidents can happen. In the event the vehicle is totaled, Hyundai will settle with your insurance company as long as you keep your account current (you can’t be past due). If the check from the insurance company does not cover the balance due, you are not responsible for any deficit as long as your account is in good standing. Again, your limit of liability is to be current with your payments. This is a huge advantage to leasing and is not the case should you pay cash or finance a vehicle.

A: Normal wear and tear is allowed, and the days of being overly picky of a lease turn-in are long gone. However, if you are tough on a vehicle like my family, (I have two boys, 4 and 6 years old) you may consider a Wear and Tear policy which will help remediate any penalties. Hyundai will contact you well before your lease ends and will provide you with their guidelines. With today’s dent doctors and chip fixers, our dealership will be able to help you with any defects. If your windshield is cracked you will have to replace it. You may want to consider including windshield coverage if it isn’t already a part of your automobile policy. Your tires only need to have 1/8th tread remaining. This is extremely reasonable considering you need to have 2/32nds tread just to pass a Texas State inspection. In other words they can’t be bald.