The numbers offer some interesting revelations.
Hyundai and Kia have officially entered the large three-row premium crossover segment with the all-new Palisade and Telluride, respectively. We've driven both and came away extremely impressed. While they share a platform, engine, and gearbox, each has its own unique flavor, particularly the exterior and interior designs. But what about pricing? As we previously reported, the Telluride has a slightly higher starting price than the Palisade, which was a bit surprising.
However, CarsDirect has discovered that despite that lower MSRP, the Palisade is actually more expensive to lease. The information comes from a bulletin sent to dealerships stating the lease price for the 2020 Palisade SE, with an MSRP of $32,595, will begin at $359 a month for 36 months with $3,399 due at signing.
This translates to an effective cost of $453 per month. This is a nationwide offer and has a 12,000-mile per year allowance. As for the Telluride, the LX base model (MSRP $32,735) is being offered to lease at $299 a month for 36 months with $3,499 at signing. Same yearly mileage allowance, too. Effective cost: $369 a month. Crunch the numbers and the Telluride is $57 per month cheaper on a lease. Why is that?
For starters, the Telluride enjoys a higher residual value of 66% compared to the Palisade's 63%. Kia's leasing discount is also greater than Hyundai's offer, $1,000 versus $500. The Telluride's interest rate is also slightly better, though neither figure, 4.7% and 5.0% APR, is really wonderful.
It's also important to note that, generally speaking, Telluride demand has so far been strong, thus resulting in higher dealer prices. Obviously this could cool down somewhat in the coming months, especially once Palisade sales kick into a higher gear. But in the meantime, these leasing prices clearly show the Telluride is the cheaper vehicle, despite its higher MSRP. Sometimes it's funny how things like this work out.