Why Are Genesis Leases So Expensive? 10 REASONS WHY

Genesis leases are expensive because of the premium badge that drives status symbol pricing, the cutting-edge tech and luxurious materials used in the vehicles, and the higher residual value estimates, insurance rates, taxes/fees, and R&D costs that all get passed onto the consumer through steep monthly payments.

Genesis cars have exploded in popularity over the last several years. Known for their good looks, tech-savvy features, and luxurious interiors, these flashy vehicles have garnered a passionate following. However, with a starting MSRP averaging around $50,000, most Genesis models don’t come cheap. And if you think buying is expensive, leasing can often cost even more over time.

Top 10 Reasons Why Genesis Leases Are So Costly

1. They’re Premium Vehicles

As the luxury vehicle division for Hyundai, Genesis competes directly with high-end marques like BMW and Mercedes-Benz. This positioning as a premium brand means you can expect a premium price tag to match. Extra nice materials, leading-edge tech, powerful engine performance and lavish amenities all contribute to the overall sense of luxury in Genesis cars. And you’ll pay extra for these perks whether buying or leasing.

2. Strong Resale Values

Lots of lease costs have to do with estimating the future value of a vehicle when returned. Thankfully, Genesis vehicles tend to hold onto their value very well in the used car marketplace due to their growing popularity and desirability. But higher resale values also mean higher lease payments in turn.

3. Low Lease Incentives

To help entice buyers, many car brands will subsidize attractive lease offers and deals. But since demand is already so high for Genesis vehicles, the automaker doesn’t have much incentive to lower lease costs to boost sales. Without many discounts or incentives in play, lease payments stay pretty high as a result.

4. Steep Depreciation on Technology

Part of what makes Genesis cars so advanced is all their fancy, integrated technology. Features like touchscreens, navigation, active safety systems and more make Genesis a tech leader among luxury automakers. But most tech loses value rapidly – which ramps up depreciation estimates and lease costs.

5. They’re Not as Common

Since the Genesis brand launched recently in 2015 and availability is still expanding, Genesis vehicles aren’t nearly as ubiquitous as German rivals. Limited local supply means dealers don’t need to compete as hard on aggressive lease pricing in many areas. Low supply keeps prices higher.

6. Extra Insurance and Fees

Given their hefty price tags and status as luxury cars, insuring a leased Genesis typically costs more per month compared to a standard family sedan. And lenders often tack on acquisition or documentation fees too, which get baked into the final lease quote.

7. Strong Customer Demand

Eager customers who have fallen in love with the Genesis brand are willing to pay more to drive one off the lot. Since people haven’t been scared off yet by expensive pricing, Genesis dealers and lenders have little motivation to make leasing more affordable right now.

8. Excellent Quality & Reliability Ratings

Genesis vehicles have earned impressive scores and awards for quality, reliability and durability. This peace of mind means that both dealers and lenders are confident Genesis cars will retain their value well. And strong residual value estimates lead to higher lease costs.

9. Long Waiting Lists at Dealers

Again, due to enthusiastic demand from car shoppers and short supply, waitlists to get your hands on a specific Genesis model can run long at some dealers. Less competition between local dealerships takes pressure off discounting lease prices.

10. Low Lease Mileage Allowances

To calculate leases, Genesis makes assumptions on how many miles the average driver travels yearly. Compared to rivals, Genesis mileage rate allowances tend to run conservatively low. And lower yearly mileage allotments mean your lease costs get driven up.