This Is The Lease Offer I Got From An SF Bay Area Dealer For A Hyundai Ioniq 5, Who Says The Rebate Is Twice As Much For Leasing vs Buying

So today I was surfing on The Ioniq Guy group on Facebook, and came across Summer Ardal's post about a 2024 Hyundai Ioniq 5 Limited offer he received from a San Francisco dealer, as shown below:

"Hi, this is a lease offer I got from an SF Bay Area dealer for a 2024 Ioniq 5 Limited trim. They said the rebate was twice as much for leasing vs buying, hence the $15,000. Does that make sense? Is that something that expires soon? The dealer seems to offer a standard $2000 off MSRP - does that seem reasonable for 2024? or still negotiable/possible to get a better deal? Thanks so much!"

Summer's experience clearly resonated with many members of the group, and a very lively discussion ensued, as can be seen from some of the comments. Several members took the opportunity to share their own experiences with the Hyundai  Ioniq 5, applauding both the vehicle's impressive performance and also their own personal interactions with dealerships.

Summer’s experience and the group’s lively discussion highlight how the Hyundai Ioniq 5 continues to capture attention not just for its cutting-edge EV technology, but also for its versatility in appealing to a wide range of buyers. For those looking to take things up a notch, the upcoming 2025 Hyundai Ioniq 5 N offers a performance-focused option that combines EV efficiency with sports car dynamics. However, as with any high-performance vehicle, there are trade-offs to consider.

Here are a few of  the noteworthy comments.

Michael DellaValle writes:

“Yes, the credit makes sense because the lease is then a commercial sale which qualifies for the full tax credit. Not a bad deal but I would have expected a bit better from a prior year model. $3.5k down is a lot for a lease personally. I recommend getting the current money factors from your area from the Edmunds forum and seeing how much the dealer is inflating it”

Another group member, Corey Clark says:

“Yes it's $15k off for lease. That seems like a good price. I leased a 2024 limited awd 4 months ago for 584/month - 15k miles a year. I shopped around and tried hard to get it for 500 month and this is the best I could get oh also mine is 33 months.”

And yet another group member, DAve Hogue things it's not a bad deal. Dave says:

“I had a special deal for a number of reasons. It’s not a bad deal but I’d want that to be closer to $350 for 24 with $1500 due. Mine was IONIQ 6 15k, 9% leases tax and 1500 due with gap on an SEL awd for $316. I’ve enjoyed the vehicle a lot so far.”

With regard to Lease vs. Buy rebate, the dealer’s claim that the rebate is significantly higher for leasing ($15,000) compared to buying is not uncommon. Manufacturers often provide larger incentives to encourage leasing, as it helps them maintain a steady flow of vehicles on the market. However, it’s essential to verify the details of this offer, including the terms and conditions, as rebates can vary by region and may have expiration dates as the rebates are particularly attractive for EVs.

It’s a good idea to ask the dealer for specifics on how long the rebate will be available. As far as negotiating discount off MSRP, a standard discount of $2,000 off MSRP for a new 2024 model can be considered reasonable, especially given that new models often have less margin for negotiation right after their release. However, the market dynamics can vary widely, particularly in a competitive area like the SF Bay Area. If demand for the Ioniq 5 is high, it might be less negotiable, but if inventory is plentiful or if the vehicle is not moving as quickly, you could have room to negotiate further.

Having a strategy for negotiation is key, so make sure you always research competitors and check what other dealers in your area are offering for the same model. This can give you leverage when negotiating, and also be prepared to walk away if you feel the deal isn’t right, don’t hesitate to walk away. There are often other options available as the Consumer Reports recommends this important negotiation point to focus on when buying a new car.

Also, consider timing, if the rebate or offer has an expiration date, it might pressure the dealer into providing a better deal if they want to close a sale before that date.

While the rebate and discount offered to Summer seem reasonable, it’s always worth doing your research and negotiating where possible. Don’t hesitate to ask questions, and ensure you fully understand the terms of the lease offer before making a decision.

Leasing and buying both offer unique pros and cons. Leasing typically involves lower upfront costs and flexible monthly payments, allowing access to new vehicles or technology without long-term commitment. However, at the end of a lease, you don't own the asset, leading to ongoing payments. In contrast, buying requires a higher initial investment but results in full ownership, allowing for potential equity buildup and customization. While long-term costs may be lower for owners, they must also factor in maintenance and repair expenses. Ultimately, the choice depends on individual financial situations and long-term goals. 

Dealer incentives and rebates significantly influence car leasing and buying costs. Manufacturers often provide these incentives to encourage sales of specific models, typically offering higher rebates for leasing, which can lower monthly payments. In contrast, buying may come with lower rebates but allows for potential equity in the vehicle. Understanding these financial mechanisms enables consumers to negotiate better deals and make more informed leasing or purchasing decisions. 

Moral of the Story

The discussions among members relating to Summer's post, highlight a valuable lesson for any consumer that is potentially in the market for a new vehicle – be sure  to explore your options. Comparing prices, and checking different dealership offers, can lead to significant savings and a more satisfying purchasing experience.

Additionally, customer reviews and shared experiences can provide invaluable insights, helping potential buyers feel more confident in their decisions, so before embarking upon your purchasing decision, it’s always worthwhile doing some research, and checking out what other consumers have experienced during their own negotiations with dealerships.

As the discussions in the group demonstrate, doing your homework and asking the right questions can make all the difference when negotiating a lease or purchase. Whether it's clarifying rebate details, understanding dealership incentives, or simply learning from others’ experiences, being informed is key. And if you're an Ioniq 5 owner, or plan to become one, it’s worth taking note of some hard-earned lessons shared by other drivers, especially when asking for Hyundai's Roadside Assistance.

Have you had a similar experience when shopping for a car? -  Let us know below.

• What tips would you share with others looking for the best deals relating to leasing v buying?
• What has been your best and worst experiences with dealerships?

Thank you for your feedback, and your valuable insights, you could help someone else  successfully navigate their car-buying experience.

David Black specializes in vehicle technology in his writing. David's focus at Torque News is mainly in electric vehicles and you can follow him on X and on LinkedIn for tips and suggestions.