Two things that you should consider: a. Finance cost for the 0$ down b. Removal of $7500 from MSRP to ensure automakers aren't just padding their lease rates
The standard range I5 is lacking in just about every way. First, the motor is too small. It's only 125kW/168hp, which is way too small for a 4000lbs car. By comparison, the Bolt has a 150kW/200hp motor in a 3700lbs car. Second, a 58kW battery is just too small. The Ioniq5 is not an efficient vehicle. It averages about 3.2mi/kWh. That puts realistic average range at about 185miles. If you live in a warm weather climate or only drive local roads, the 220mi range might be realistic, but if you see colder weather, that's just not happening. It's 100% worth the extra money to get the SE with the 77kWh battery. You get more power (225hp RWD) and you get a realistic 250mi range.
Agreed. It’s not a 1 to1 comparison when you add in what you get in the higher trim. Also, fwiw, Car & Driver recommends the SEL as the best value in terms of what you get for the money.
Second question: If you want to buy out your 36 month lease early (let's say after 18 months), what formula do you use to calculate how much you would have to pay? Is this a terrible business deal to do?
If you wanted to buy your lease out early, you would have to pay the residual value and you would have to pay for all outstanding payments. These two factors combined make up the lease buyout amount. Hope that helps!
No money factor and residual value weren't discussed. The 1.25% rule is a rule of thumb that I use to determine whether a lease is a good deal. As an example if you use a $50,000 msrp car with a lease payment of $900/month with $0 down wouldn't be a good lease deal (1.8%) - However a $50,000 car with a payment of $575 a month would be a much better deal (1.15%). The rule makes it simple to determine whether a lease is a good deal without getting into the nitty gritty (rebates, discounts, money factor, residual, etc.)
Awesome info Ravi! Could you do a lease deal analysis for a Kia EV9 Wind? There seems to be a Kia lease deal going on right now. $639/month, 24 or 36 month, $5,999 due at signing. Wondering if this is a good deal. TIA!
