Lease then Buyout - Contract Explanation

[Ruturaj]

So rebates went up by around 500.

 

[patrick49]

Thanks for this thread. My usual buying tactic is to find a low-miles used previous model year on the (relative) cheap, but doing it this way, I can get reasonably close to the same price on a new GT1 as I can on the lowest-priced '18 GT2 I've been able to find around me. Being in Texas, I'll need to go the balloon route, but that's good info to have going into a test drive.

 

[MerlintheMad]

Welcome, Patrick from TX. Let us know how that works out.

 

[Brlong23]

So at what interest rate does this lease buyout become a wash? If you're able to finance the vehicle at 0% currently and qualify for all of the rebates, doesn't that effectively negate the reduced sales price through the lease buyout pretty quickly? If I financed at 0% right now and managed to get 7K off MSRP, with all of my payment going to principal...then I imagine I'd be even with the lease buy out within a year or two...and quickly surpassing it.

 

[Ruturaj]

So at what interest rate does this lease buyout become a wash? If you're able to finance the vehicle at 0% currently and qualify for all of the rebates, doesn't that effectively negate the reduced sales price through the lease buyout pretty quickly? If I financed at 0% right now and managed to get 7K off MSRP, with all of my payment going to principal...then I imagine I'd be even with the lease buy out within a year or two...and quickly surpassing it.

You get lease rebate over the dealer discount, so assume you are taking about gt2 AWD then it means 9,900 in lease incentives + 7k off in MSRP. You kind of loose 1k in extra fees with a lease. So you still end up saving 9k - (interest you pay on the lease (4.6% upward) + interest you pay on buyout loan). The key here is to do buyout as soon as possible with better interest rate.

 

[CarBrad]

I was interested in doing a lease buyout, but I have talked to a few lenders and apparently lease buyout APRs are higher (almost 5%) than a new car APR. In fact, even higher than some used car APRs. Maybe I am not checking with the correct banks, because at it is, the lease buyout saves me some money, but not anywhere near what is should.

Does anyone have recommendations for this? credit score is good so that shouldn't be an issue.

 

[Jay B.]

@CarBrad Try a local credit union. They almost always treat a lease buyout within the first year as a new car purchase for the best rate.

 

[Lynix]

Are they still doing the lease deals this month? I looked on there website it only seems like they have 316/month for a lease or whatever

 

[Jay B.]

@Lynix Yes they are, it always take a couple days for the new month's incentives to hit the websites.

 

[usagi]

$9900 lease cash on GT2 AWD. unchanged from last month.

 

[Lynix]

@usagi Where can I find this? Not that I don’t believe you I would just like to know for future reference. Is it the 319/month for 36 months deal but you just like recalculate? Also are you able to combine this deal with conquest, and loyalty bonus?

 

[Ruturaj]

@usagi Where can I find this? Not that I don’t believe you I would just like to know for future reference. Is it the 319/month for 36 months deal but you just like recalculate? Also are you able to combine this deal with conquest, and loyalty bonus?

How to: How to view Stinger offers on Kia website by trim

Lease deal can't be combined with any other deal except summer sale event.

 

[Jun Sung Park]

Lease deal can't be combined with any other deal except summer sale event.

Really? Lease cash cannot be combined with conquest/loyalty bonus?

 

[usagi]

@usagi Where can I find this? Not that I don’t believe you I would just like to know for future reference. Is it the 319/month for 36 months deal but you just like recalculate? Also are you able to combine this deal with conquest, and loyalty bonus?

2019 Kia Stinger Incentives and Rebates | Autobytel.com

 

[turboAWD]

Really? Lease cash cannot be combined with conquest/loyalty bonus?

In the past that was a possibility. I would have thought it was still possible. A few times (by mistake), some dealers combined conquest AND loyalty!

 

[SVT2003]

Can someone help me figure out what I’d save from a buyout of a GT2 AWD I purchased this week.

I will label everything from my lease agreement (never leased a car but wanted the $9,900 rebate)

A. Agreed upon value = $49,554
B. Sales tax = n/a
C. License,title fees $135
D.doc fee $389
K. Acquisition fee $650
L. Total cap cost $51,305

24 monthly payments = $16,174

Residual value is $29,733

I put nothing down, I have about 22k I can put down and have been pre approved for a 2.99 auto loan at my credit union. What would I save if I did the buyout now versus buying at the end of the lease and also what tips would you suggest. I find the whole lease contract incredibly confusing.

Thanks for any help that can be provided

 

[MerlintheMad]

Can someone help me figure out what I’d save from a buyout of a GT2 AWD I purchased this week.

I will label everything from my lease agreement (never leased a car but wanted the $9,900 rebate)

A. Agreed upon value = $49,554
B. Sales tax = n/a
C. License,title fees $135
D.doc fee $389
K. Acquisition fee $650
L. Total cap cost $51,305

24 monthly payments = $16,174

Residual value is $29,733

I put nothing down, I have about 22k I can put down and have been pre approved for a 2.99 auto loan at my credit union. What would I save if I did the buyout now versus buying at the end of the lease and also what tips would you suggest. I find the whole lease contract incredibly confusing.

Thanks for any help that can be provided

So do I: find the whole lease thing confusing. But I do know that such a thing called "lease rent" is paid each month. And by the end of my 36 months lease I'd have forked over well above $5K. So buyout spared me that loss. The faster you pay off your credit union loan the less interest you pay. Obviously if you could do the buyout with cash, and not take out a loan to do it, that is optimal savings. So, use your $22K to pay off the loan. Don't use it to reduce the lease.

 

[SVT2003]

I just sound the rent charge to be $3551.20, in Massachusetts the sales tax is part of the monthly payment. I’m assuming the residual value and monthly payments should include the sales tax with the buyout?

 

[SVT2003]

This is a photo of the agreement

 

[usagi]

It still makes me LOL that they require dot matrix printers to print out the documents.

Last time I used them was like 30 years ago.