Lease then Buyout - Contract Explanation

[DBStinger]

So I'm interested in doing a lease-buyout, but I am unsure how would this deal look. The dealer states the down payment covers the first month of the lease. The quote I have been given is as such...
Stinger GT2 AWD,

MSRP- 54,850
Dealer Discount- 4,838
Sale Price- 50,012
Acq Fee- 650
Rebate 11,700
Net Trade- 2,100 (Negotiating this)
Paid by customer- 3,000
Residual Value- 29,619

3,000 down for 510.41
5,000 for 417.63
7,000 for 324.83

Any help would be appreciated

 

[rookie]

First time hearing about this leasing then immediately buying situation but it sounds ideal. I understand it's to take advantage of the lease incentive but to me, it seems like a loophole. Is this something I clearly state to the dealership? I ask because wouldn't they want the most money they can get for the car? So if i tell them my intention of "leasing" to get the incentive, then turn around and buying it in a couple weeks, wouldn't they be less willing to go down on the price of the car? Or am I not understanding something correctly?

 

[Rob M]

First time hearing about this leasing then immediately buying situation but it sounds ideal. I understand it's to take advantage of the lease incentive but to me, it seems like a loophole. Is this something I clearly state to the dealership? I ask because wouldn't they want the most money they can get for the car? So if i tell them my intention of "leasing" to get the incentive, then turn around and buying it in a couple weeks, wouldn't they be less willing to go down on the price of the car? Or am I not understanding something correctly?

You just negotiate the selling price with the dealership before any incentives, financing, or trades are considered. Then once you have agreed upon a price you tell them that you want to do a 24 month lease. Kia is providing the incentive, not the dealership, so the dealership should not care. But you do have to make sure you thoroughly understand the contract and tax implications for your state (as well as whether you need to go back to a dealership to do buyout, or complete it online with KMF).

 

[Rob M]

So I'm interested in doing a lease-buyout, but I am unsure how would this deal look. The dealer states the down payment covers the first month of the lease. The quote I have been given is as such...
Stinger GT2 AWD,

MSRP- 54,850
Dealer Discount- 4,838
Sale Price- 50,012
Acq Fee- 650
Rebate 11,700
Net Trade- 2,100 (Negotiating this)
Paid by customer- 3,000
Residual Value- 29,619

3,000 down for 510.41
5,000 for 417.63
7,000 for 324.83

Any help would be appreciated

Would need to know the state and sales tax rate along with dealer processing and other fees. But getting close to $5k dealer discount plus the huge lease incentive is a great start. You just have to be mindful of what in the way of additional costs the dealer may be adding in - some legitimate, some not so much. If you're going to do a buyout, cap cost is critical; money factor, residual and monthly payment not so much - but you need to know everything that figures into those calculations.

 

[Lonz]

You just negotiate the selling price with the dealership before any incentives, financing, or trades are considered. Then once you have agreed upon a price you tell them that you want to do a 24 month lease. Kia is providing the incentive, not the dealership, so the dealership should not care.

Spot on! Attached are pics of my deal that I got this past Wednesday for a 2020 AWD GT2. The first pic shows the MSRP of $54,140. The second pic shows the dealer selling price of 10% off of MSRP, less the 24-month lease rebate of $10,200, plus $650 lease acquisition fee, plus $199 doc fee, plus $45 tax for a grand total of $39,420. This is my lease buy out cost or "Adjusted Capital Cost." Paying $39k for a $54k MSRP vehicle feels pretty good to me!

 

[NOBODY]

The first pic shows the MSRP of $54,140. The second pic shows the dealer selling price of 10% off of MSRP….

Is 10% off MSRP typical for most states? Best I've received so far in WA is 8.8%.

Anyone know if the WA trade-in tax credit is lost at the point of buyout? Or, is it factored into the Section 22D Adjusted Lease Balance?

 

[98mystique2]

Just came across a used gts locally which got me interested in stingers once again. Read through a few pages here, is the 10,200 still available and where can I read about it, I'm not seeing anything on kmfusa or kias website directly. Was planning on buying used but seeing how the used price is more than some of the new deals do be had I don't think that's a good plan.
Located in Illinois 61108
Thanks

 

[NOBODY]

Read through a few pages here, is the 10,200 still available and where can I read about it, I'm not seeing anything on kmfusa or kias website directly.

NOTE: I'm not able to post links as a new member. You will need to remove spaces from the links below.

You can find incentives listed on Edmunds:
www .edmunds .com /kia/stinger/2020/deals/

Also, incentives will show up if you use the purchase/lease calculator on Kia's website.

Lease incentives, money factor, and residual value can also be found in the latest lease thread here:
forums .edmunds .com /discussions/tagged/kia/stinger

 

[98mystique2]

NOTE: I'm not able to post links as a new member. You will need to remove spaces from the links below.

You can find incentives listed on Edmunds:
www .edmunds .com /kia/stinger/2020/deals/

Also, incentives will show up if you use the purchase/lease calculator on Kia's website.

Lease incentives, money factor, and residual value can also be found in the latest lease thread here:
forums .edmunds .com /discussions/tagged/kia/stinger

Found it in the lease calculator when you select all the right options (0down 0 trade in), 9400 for rwd 10200 awd is there any literature on the options or is it hidden?

 

[NOBODY]

is there any literature on the options or is it hidden?

What options are you referring to?

 

[NOBODY]

Is 10% off MSRP typical for most states? Best I've received so far in WA is 8.8%.

To somewhat answer my own question for those that may come along later: while I’m not sure there is a typical, working with multiple dealers and exercising patience can net a good deal. I was able to finally close a deal on 2020 GT2 with an MSRP of $54675 and a selling price of $48000 before rebates (12.2% dealer discount).

Actual out the door numbers aren’t as impressive given the massive amount of negative equity I had in my old car. But, that has nothing to do with Kia or the dealer.

I’ll provide an update once I pull the trigger on the buyout. Better workout as I expected or I’ll be making massive payments over the next 24 months!

 

[TheCarlough]

Shoot - I wish I knew about this prior to leasing. I went three years, still got a $8200 rebate.

I always lease. The lease numbers themselves are pretty awful (ie, MF and Residual), but with the rebate the payment is fine with me - and I could not find anything else near as fun.

Out of curiosity, why interest rates are you getting when refinancing? Or are most of you buying it out 100% cash? I did a quick look with my credit union and it’s not that much better than the 4.2% interest on the lease. I’d be all for buying it out - but I hate doing trade-ins and fearful of being over-under (happened many moons ago).

Also, just as an aside. I’m sure jealous with some of the discounts pre-rebates y’all are getting. I live in Alaska, and I had to argue to even get it for MSRP plus rebates. Heck, even the online “new car value” tools show that MSRP plus rebates is fair up here.

At least we don’t have a sales tax I guess.

 

[anniepeachie]

To somewhat answer my own question for those that may come along later: while I’m not sure there is a typical, working with multiple dealers and exercising patience can net a good deal. I was able to finally close a deal on 2020 GT2 with an MSRP of $54675 and a selling price of $48000 before rebates (12.2% dealer discount).

Actual out the door numbers aren’t as impressive given the massive amount of negative equity I had in my old car. But, that has nothing to do with Kia or the dealer.

I’ll provide an update once I pull the trigger on the buyout. Better workout as I expected or I’ll be making massive payments over the next 24 months!

I've been trying to do this for over a week and failing miserably. I must be a lot worse at negotiation than I thought. Lowest I could get would be a $44,300 OTD for a GT2 AWD, which just puts me way over the budget I had started with when first considering the car. Biggest dealer discount I could manage was about 6.7% ending up at a $51,150 before $10,200 rebate and TTL. Everyone else was barely 5% discount or even 0%! I was about $650 away from pulling the trigger and he wouldn't budge so I walked. Not really over $650, but because I was already so much higher than I originally planned. Perhaps he had nothing left to squeeze, but then neither did I.

Congrats to all who managed a $38k to $39k deal! I'm probably 95% close to forgetting about the whole car as apparently it's out of my price range after all, unless waiting for the 29/30th or into the summer (2021s?) would give me a fighting chance. I just don't get it. Three dealers within 40 miles of me have the exact GT2 AWD silver with red interior and no one will budge. Been on their lots since Jan. too! Totally defeated.

 

[anniepeachie]

Out of curiosity, why interest rates are you getting when refinancing? Or are most of you buying it out 100% cash? I did a quick look with my credit union and it’s not that much better than the 4.2% interest on the lease. I’d be all for buying it out - but I hate doing trade-ins and fearful of being over-under (happened many moons ago).

Also, just as an aside. I’m sure jealous with some of the discounts pre-rebates y’all are getting. I live in Alaska, and I had to argue to even get it for MSRP plus rebates. Heck, even the online “new car value” tools show that MSRP plus rebates is fair up here.

At least we don’t have a sales tax I guess.

Yeah well, don't be too jealous, as you can see in my last post/rant. And I'm FAR from AK, in the freaken Motor City here. I didn't go as far as to be pre-approved, but I did check in with my CU and their financing up to 60 mo. is 1.99%, new or used. I verified with them on the phone that I could pay off a lease at that rate and they said yes. I was gonna do something like 48 mos. and hope to pay off within 36 (usually my rule).

 

[TheCarlough]

Yeah well, don't be too jealous, as you can see in my last post/rant. And I'm FAR from AK, in the freaken Motor City here. I didn't go as far as to be pre-approved, but I did check in with my CU and their financing up to 60 mo. is 1.99%, new or used. I verified with them on the phone that I could pay off a lease at that rate and they said yes. I was gonna do something like 48 mos. and hope to pay off within 36 (usually my rule).

What about a lower trim line? Or would you be willing to travel to get a better deal?

Thats what gets us up here - we’re a captive population. Granted, many will buy from Washington and have it shipped up, and you can save money doing it that way, but it’s also risky unless you’re willing to fly down, inspect, prior to committing, and even then a lot can happen during shipment.

Although...if I knew about some of the discounts folks were getting (research first!!!), I would have been interested in seeing what I could have gotten.

 

[anniepeachie]

What about a lower trim line? Or would you be willing to travel to get a better deal?

Thats what gets us up here - we’re a captive population. Granted, many will buy from Washington and have it shipped up, and you can save money doing it that way, but it’s also risky unless you’re willing to fly down, inspect, prior to committing, and even then a lot can happen during shipment.

Although...if I knew about some of the discounts folks were getting (research first!!!), I would have been interested in seeing what I could have gotten.

I've traveled out of state in the past, but not for a lease. I'm really close to Ohio, but they are not lease-friendly when it comes to taxation. I'm cool with the GT1, personally, but they're not as easy to find and I know my husband wants that red so badly (none has red here). Maybe I could find a deal in Indiana, but ugh. Taxes are higher too. Yes, be glad tax at least you don't have to worry about! Enjoy your amazing car!!

 

[TheCarlough]

I've traveled out of state in the past, but not for a lease. I'm really close to Ohio, but they are not lease-friendly when it comes to taxation. I'm cool with the GT1, personally, but they're not as easy to find and I know my husband wants that red so badly (none has red here). Maybe I could find a deal in Indiana, but ugh. Taxes are higher too. Yes, be glad tax at least you don't have to worry about! Enjoy your amazing car!!

You’ll get there. Just have some patience.

Who knows how the 2021s will affect current pricing, although they won’t be out until the end of the year (assuming reports are correct), and how the continued pandemic will affect car sales.

I’m honestly shocked that the dealer wouldn’t come down $650...like you said, maybe as we get closer to the end of the month they’ll be willing to budge to meet their numbers.

 

[DBStinger]

Can anyone offer advice on the quote that was given to me for this lease offer? I am having some difficulty figuring out how to calculate how much I would be spending if I were to buy out the vehicle immediately or within the first couple of payments. I live in CA so my sales tax is about 9%.

Thanks

 

[anniepeachie]

Can anyone offer advice on the quote that was given to me for this lease offer? I am having some difficulty figuring out how to calculate how much I would be spending if I were to buy out the vehicle immediately or within the first couple of payments. I live in CA so my sales tax is about 9%.

Thanks

It's basically just the price of the car, plus tax & fees, minus rebate. So around $45,600. I haven't done it yet myself, so I don't know how all the numbers look in the end once it's in the KMF system. Can you not get a $10,200 rebate with 10k miles? leasehackr.com has a nifty calculator to let you see how a lease breaks down. But if you're just buying it out, it's all about the sales price and maxing a discount and rebate.

 

[SVT2003]

Hi everyone, not sure where to post my comment. I completed a lease buyout at the end of March (just before the COVID 19 crisis hit the US). My credit union paid Kia Motor Finance and since then neither I or the credit union had received the title. So, I’m paying for a car without a title at this point. To make matters worse KMF won’t even connect me to a live person and have not responded to dozens of emails I have sent requesting the title... has this happened to anyone else? If so how did you handle it? I’m at a loss for how unhelpful KMF and my dealer have been with this issue.

thanks in advance, and I apologize if this was not the correct place to post this concern.