Is Hyundai cars extending leases?

[dvcgirl67]

Interested to hear what your son finds out....thinking they'd want the car back since it's likely worth more than the buyout at this time. I believe manufacturers extended leases at the beginning of Covid because they were worried that sales would plummet and they wanted to keep the cash flow. A year later...totally different world.

 

[waltonmkb]

I am shocked at used car prices. My husband has a 2014 Chevy Silverado truck with 63,000 miles on it. He looked to trade it in 2 years ago and was offered around $18,000 to trade it in. He decided to keep it, but is now looking again. This weekend he was offered $32,000 for the same truck as a trade-in! Still hasn't decided what to do.

 

[dvcgirl67]

I am shocked at used car prices. My husband has a 2014 Chevy Silverado truck with 63,000 miles on it. He looked to trade it in 2 years ago and was offered around $18,000 to trade it in. He decided to keep it, but is now looking again. This weekend he was offered $32,000 for the same truck as a trade-in! Still hasn't decided what to do.

wow..that’s unbelievable. I guess the main issue with cars right now is similar to that of the housing market. If you do sell your used vehicle….you will get an incredible price for it. Really, unprecedented in my lifetime anyway.

But to see a financial win you have to downsize in vehicle type/year…etc…and hope that you’ll even be able to find one.

 

[Tattylou]

My lease wasn’t up until Sept 2022. The Honda dealership contacted me last week bc of low used vehicle inventory and wanted to buy it back early. I got a new lease on a 2022 CRV and also traded in my husband’s 07 Rav4 and got him a 2022 CRV lease too. I had a lot of negotiating power by getting two at the same time.

 

[tvguy]

Interested to hear what your son finds out....thinking they'd want the car back since it's likely worth more than the buyout at this time. I believe manufacturers extended leases at the beginning of Covid because they were worried that sales would plummet and they wanted to keep the cash flow. A year later...totally different world.

Just talked to my son, he and his wife are leasing a Hyundai Kona Electric and have a year left on their lease. He went into the dealer Saturday and they said his lease is directly through Hyundai and at this point Hyundai is sticking with lease terms on electric cars, but they are trying to end leases early and get gasoline versions back.

 

[dvcgirl67]

Just talked to my son, he and his wife are leasing a Hyundai Kona Electric and have a year left on their lease. He went into the dealer Saturday and they said his lease is directly through Hyundai and at this point Hyundai is sticking with lease terms on electric cars, but they are trying to end leases early and get gasoline versions back.

interesting…from what I’ve read big pick-ups and big SUVs are getting the highest prices as used vehicles and in the highest demand.
That’s interesting when you factor in the rise in gas prices. I guess it’s not hitting people’s’ pockets as hard as news reports would lead us to believe.

 

[ronandannette]

Woot!! We're just about out of the woods it seems. DH and I were both contacted by our respective dealers this morning. His new Toyota is being delivered on Tuesday and I'm travelling to the city where my new Mazda is waiting on Wednesday night.

 

[tvguy]

interesting…from what I’ve read big pick-ups and big SUVs are getting the highest prices as used vehicles and in the highest demand.
That’s interesting when you factor in the rise in gas prices. I guess it’s not hitting people’s’ pockets as hard as news reports would lead us to believe.

I am going to answer like the grumpy 64 year old I am. I can't believe how much some people will complain about gas prices, yet they won't go a few blocks away to another brand gas station that is 50 cents a gallon cheaper. And I'm not talking Costco or Sams Club, but other major brand gasoline. And yes, these are the same people who are driving less fuel efficient vehicles, or put premium fuel in the cars. So it may be fashionable to complain, but not worth the effort to save money.

 

[dvcgirl67]

I am going to answer like the grumpy 64 year old I am. I can't believe how much some people will complain about gas prices, yet they won't go a few blocks away to another brand gas station that is 50 cents a gallon cheaper. And I'm not talking Costco or Sams Club, but other major brand gasoline. And yes, these are the same people who are driving less fuel efficient vehicles, or put premium fuel in the cars. So it may be fashionable to complain, but not worth the effort to save money.

Ha...sometimes people just like to complain. It will be very interesting to see how these sky high used car prices hold up. If I was that person with the Silverado....who can get 32K for it now, as opposed to 2 years ago when it was worth 18K, man, if there was a way to sell it and go down to one car for a bit...I'd be tempted. And then I'd wait for prices to come down.

I think of the person paying 32K for that seven year old truck now.....what's it worth in a year or even worse...two years from now? The auto industry isn't like the housing market. This is a real black swan event for the auto industry. And unlike housing, it won't take years for supply to catch up with demand. It will catch up pretty quickly, and that 32k Silverado will be worth less than the 18K it was worth in 2019....really fast. I think of people financing those deals now, not being able to afford the payment and being upside down in a way, way upside down.

 

[ronandannette]

Ha...sometimes people just like to complain. It will be very interesting to see how these sky high used car prices hold up. If I was that person with the Silverado....who can get 32K for it now, as opposed to 2 years ago when it was worth 18K, man, if there was a way to sell it and go down to one car for a bit...I'd be tempted. And then I'd wait for prices to come down.

I think of the person paying 32K for that seven year old truck now.....what's it worth in a year or even worse...two years from now? The auto industry isn't like the housing market. This is a real black swan event for the auto industry. And unlike housing, it won't take years for supply to catch up with demand. It will catch up pretty quickly, and that 32k Silverado will be worth less than the 18K it was worth in 2019....really fast. I think of people financing those deals now, not being able to afford the payment and being upside down in a way, way upside down.

Agree. I just don't understand the panic-buying of used vehicles. New vehicles, respectively, have not increased much in price at all, although supply is a problem. We made out very well on both ends of our trades and the deals on the new ones.

 

[sam_gordon]

I am going to answer like the grumpy 64 year old I am. I can't believe how much some people will complain about gas prices, yet they won't go a few blocks away to another brand gas station that is 50 cents a gallon cheaper. And I'm not talking Costco or Sams Club, but other major brand gasoline.

I've never seen 50 cents/gallon difference no matter how far I've driven (ok, maybe multiple states away). AND you're assuming people know what the price is elsewhere. Yea, I know about the gasbuddy app.

In fact, according to gasbuddy, the price range in my area is $2.74 to $2.99

 

[tvguy]

I've never seen 50 cents/gallon difference no matter how far I've driven (ok, maybe multiple states away). AND you're assuming people know what the price is elsewhere. Yea, I know about the gasbuddy app.

In fact, according to gasbuddy, the price range in my area is $2.74 to $2.99

Chevron always has tended to be at least 40 cents a gallon more than ARCO here. Gasbuddy says current range in my community is $3.89 (ARCO) to $4.39 (CHEVRON). Those stations are on the same street, six-tenths of a mile apart.

 

[dvcgirl67]

Agree. I just don't understand the panic-buying of used vehicles. New vehicles, respectively, have not increased much in price at all, although supply is a problem. We made out very well on both ends of our trades and the deals on the new ones.

I really think it's a super weird post pandemic thing here in the U.S. I mean, if you have cash to blow and really need that used car....and are prepared for an epic drop in value....then I guess....buy it?

I own and work in a service business, and so we went from completely shut down, then slowly built up to about 40-45% of our normal gross revenue. I brought four of my six people back and we shared the work load. It remained that way from about last September until May. Then, literally in the last two weeks, things have gotten *nuts*, and I mean....like I've never seen. My business is pet care...pet-sitting/dog walking. One simple way I gauge what is happening is by how much the phone is ringing, and it's literally ringing off the hook in the last two weeks. Then I saw my bill from google ads....which is normally not an expensive bill for me. Most of my business is referrals....through word of mouth. But with google ads.... I see how many people are visiting my website, number of click-throughs....etc. I got the bill for May and was like...."whoah....this has to be a mistake". It was ten times my normal bill....but when we investigated, it's real. Visits to my site just exploded, literally overnight. Everyone wants everything....and like Veruca Salt in Willy Wonka....They want it NOW!!

In my situation a lot of the calls are from people who don't really understand what pet sitting is....they think I'm a boarding facility. And that always happens from time to time...but not it's all of the time. And I'm finding that a lot of people are really rude. Some are so rude that we don't even return their calls. My other two people don't want to come back...at least not now. And I really don't want to hire anyone new. So, for now we're just holding on to existing customers until some of this insanity passes.

So I think this is happening across our economy right now. Cars, houses, travel...etc. American Airlines started to cut flights because they just couldn't handle the explosion in travel. On a way smaller level, I decided to do the same. We may pick up some new business here and there, but we're being picky. It's just a super crazy time. I've never experienced anything like it.

 

[Mackenzie Click-Mickelson]

Agree. I just don't understand the panic-buying of used vehicles. New vehicles, respectively, have not increased much in price at all, although supply is a problem. We made out very well on both ends of our trades and the deals on the new ones.

I think part of it is because dealers then have more to sell than they currently do. Not everyone going to a dealership is looking for a brand new car too plus dealers who really only deal in used cars. The market is ripe for those buying new cars but most of that is so time dependent or you'll be waiting a bit. If you need a car now a dealer can sell you a used one at least.

 

[Mackenzie Click-Mickelson]

I mean, if you have cash to blow and really need that used car....and are prepared for an epic drop in value....then I guess....buy it?

I don't think too too many people are buying used cars thinking about the depreciation in value honestly. Right now people may be very fortunate to get a profit in some cases or at least not lose nearly as much in value as they thought but that's a just right now thought. I mean when you go to a lot to buy a used car are you thinking "I want to get rid of this in 2 or 3 years it'll be worth a lot less then"? I kinda don't think people think like that. Certainly there's consideration towards how strong or not strong certain cars retail value but you expect to lose value regardless.

 

[dvcgirl67]

I don't think too too many people are buying used cars thinking about the depreciation in value honestly. Right now people may be very fortunate to get a profit in some cases or at least not lose nearly as much in value as they thought but that's a just right now thought. I mean when you go to a lot to buy a used car are you thinking "I want to get rid of this in 2 or 3 years it'll be worth a lot less then"? I kinda don't think people think like that. Certainly there's consideration towards how strong or not strong certain cars retail value but you expect to lose value regardless.

I agree that people aren't thinking about how the value will hold up. There's a bit of a frenzy in that market too. But it is something to think about....especially for anyone who is financing it. A truck that was worth 14K in 2019 and is now going for 32K...is a mirage. Once supply catches up, values of used vehicles will plummet in some cases. It's not uncommon for people to "roll debt over" into their next car purchase. In a normal car market when you buy a seven year old car/truck, most of the depreciation has already taken place. But in this market that isn't the case. In a couple of years, when supply fully catches up...that 32K truck will be worth 10K. That's a huge drop for a used vehicle. Just another crazy weird pandemic phenomenon.

 

[Mackenzie Click-Mickelson]

I agree that people aren't thinking about how the value will hold up. There's a bit of a frenzy in that market too. But it is something to think about....especially for anyone who is financing it. A truck that was worth 14K in 2019 and is now going for 32K...is a mirage. Once supply catches up, values of used vehicles will plummet in some cases. It's not uncommon for people to "roll debt over" into their next car purchase. In a normal car market when you buy a seven year old car/truck, most of the depreciation has already taken place. But in this market that isn't the case. In a couple of years, when supply fully catches up...that 32K truck will be worth 10K. That's a huge drop for a used vehicle. Just another crazy weird pandemic phenomenon.

True about financing. That said I think it all depends on how someone uses their car. If you're getting a different car every few years that's going to be different than someone who doesn't intend to do that. When I made my comment it's because you said if you really needed that used car are you prepared for the drop in value, the people who are constantly swapping out cars might be the ones to look at depreciation but not just people in general who buy used cars. And well if you need a car you need a car, you're unlikely to even care about depreciation if you don't plan on getting rid of it anytime soon and you need a vehicle.

That's the unfortunate thing about both the used and the new market because it hits everyone which is why I think partly the used car market is up because without cars to sell the dealers are grasping at getting something..it's like a buyer's market for used cars and a seller's market for new cars. I totally agree if you can wait off do so but not everyone is going to be able to do that right now.