Lease then Buyout - Contract Explanation

[crozbee]

Hello all,

Just discovered this forum. Lots of great info on the lease buyout. Thank you to all the contributors looking to help others. I noticed that in my area, there are no 2021 lease rebates according to Edmonds. Is this just due to the time of the year and we should expect to see rebates at some time in early-mid 2021?

Another question on the lease buyout. Does the 10yr/100k miles warranty stay in tack when you go this route?

 

[AYip31]

Hello all,

Just discovered this forum. Lots of great info on the lease buyout. Thank you to all the contributors looking to help others. I noticed that in my area, there are no 2021 lease rebates according to Edmonds. Is this just due to the time of the year and we should expect to see rebates at some time in early-mid 2021?

Another question on the lease buyout. Does the 10yr/100k miles warranty stay in tack when you go this route?

2021 rebates should come about late spring
Yes original warranty remains.

 

[Buzz]

After comments from the community here and thanks to everyone, I think this deal is what looks like the deal I would like. I couldn't get the protection package removed, he removed 2k addendum etc and I tried to find the vehicles with so many dealers and this is the only one who looked to be interested and listen to concerns. I believe I got the deal I wanted.
Do you think am I missing anything? @Buzz and @AYip31 you have been of great help.

View attachment 51816

Does the protection package just evaporate when you buy your lease out (I think the answer is yes, it's a lease turn-in protection plan like https://www.kia.ca/content/kmf/KIAF-TRI-EWU-B2C-0417-R9E-web.pdf right?) does the dealer know you intend to perform a lease-buyout hence why they are pushing it? That's a $625 dollar flush down the drain if so and makes sense, if the really want some profit get the all weather floor mats instead. There is zero point to a lease protection plan for extended wear and tear when you plan on owning it outright before 2020 is over.

It looks very much like they are still planning on selling a $48,804 their cost ignoring any holdback (but now with 3k miles) for $50,783

The last deal you showed the dealer was profiting $1736 this latest deal I'm calculating $1979 and they converted a BS prep and vin fee into a more expensive protection package, it seems like the deal has gotten worse not better?

I know auto prices are crazy in 2020 and dealers are going mad (and while it's good for my bonus this year) man, something seems off with this, though I get how frustrating dealers are to work with and the games they play, For as good as it will feel to get into your new car if time is on your side, time is on your side and is a big negotiating boon for YOU (again, dealers finance their floor plan, they want to free up these assets and stop paying interest on a 3k mile stinger.

Going forwards, I would suggest formatting everything like this.

MSRP 54180 who cares its a fake number it should not be your anchor
$48804 Dealer Cost 2020 Kia Stinger Prices: MSRP, Invoice, Holdback & Dealer Cost The real price you are playing against.
-$1500 wear and tear due to 3000 miles (somewhere between $750 and $1500 for 25 cents to 50 cents a mile depreciation, think, any dealer would do the exact same to you if you traded it in with 3001 miles on the odometer)
+ How much profit the dealership wants to make weather its a protection package, dealer charge, random fees, tint, etc) stick all addendums in here
= Price before rebate, actual price out the door you are negotiating

Finally....
-$8900 Rebate (this is your rebate, this is between you and Kia Motor Finance, don't let the dealer take credit for it squeeze it in-between MSRP and random fees to hide the real price they are charging.

Good luck!

 

[crozbee]

Where are you in Charlotte @Buzz ? I'm in Sedgefield. Did you go with a local dealer?

 

[crozbee]

@AYip31 can you tell me how a dealer can offer 10% or more off? when i look at the "dealer cost" on the car buying strategies website the difference between the dealer cost and the MSRP is significantly less than 10%. is it different with leases? or perhaps i'm missing something else?

example:
GT2 RWD:
MSRP - $50,300
Dealer Cost - $46,803
Difference - $3,497
$3,497/$50,300 = 7%

Wouldn't another 3% or more be a loss for the dealer?

 

[AYip31]

@AYip31 can you tell me how a dealer can offer 10% or more off? when i look at the "dealer cost" on the car buying strategies website the difference between the dealer cost and the MSRP is significantly less than 10%. is it different with leases? or perhaps i'm missing something else?

example:
GT2 RWD:
MSRP - $50,300
Dealer Cost - $46,803
Difference - $3,497
$3,497/$50,300 = 7%

Wouldn't another 3% or more be a loss for the dealer?

no difference in leases.
dealership still makes money by backend, finance, add on, warranties, meeting sales goals monthly yearly, holdback, fees if your not careful, trade-in.
I’m not saying it’s easy to get 10% off. It is a fight and lots of work. But worth it.
Gonna keep working, be in the right time and right place.

 

[AYip31]

Also remember, the longer a car sits on a lot. More money they are paying in interest on their loan.
they would rather sell and move it and get something that is currently selling

 

[crozbee]

Also remember, the longer a car sits on a lot. More money they are paying in interest on their loan.
they would rather sell and move it and get something that is currently selling

This is a good point I had not considered. Obviously 2020 models have been on the lot a very long time. For the 2021 models, is that information usually on the dealer site or do you have to use True Car/Car Gurus to get that information? How many days on a lot does it begin to be more beneficial to the buyer and force dealers to negotiate more?

 

[AYip31]

This is a good point I had not considered. Obviously 2020 models have been on the lot a very long time. For the 2021 models, is that information usually on the dealer site or do you have to use True Car/Car Gurus to get that information? How many days on a lot does it begin to be more beneficial to the buyer and force dealers to negotiate more?

Generally I think it’s 90-120 days dealerships start to worry,
You can check when the car was manufactured, check the car door jamb sticker. Look for dates MM/YY.
once you see the date add 1-2 month to it, that is when it’s generally is shipped and onto their car lot

 

[AYip31]

 

[Buzz]

@AYip31 can you tell me how a dealer can offer 10% or more off? ...

Wouldn't another 3% or more be a loss for the dealer?

Yup! Likely.

But dealers work with the law of large numbers. For every informed consumer who pushes hard there is someone who paid a grand under MSRP while the dealer made a show of how much they were just taken to the cleaners, then they said yes to $699 tinting, $499 vin etching, $499 3M Door ding guards, $699 dealer fee, $199 cleaning fee,+thousands more, bought some extended service warranty that largely consists of oil changes, robbed them on their trade in, had shitty credit so they "really worked for the guy" and sell them a loan with huge kickbacks for their finance arm and a stupidly profitable interest rate, etc etc etc. There are also bonuses and incentives for dealerships with high volume and turnover.

Once they sell this year old, 3000 mile stinger, they free up some overhead, stop paying interest on it and can get a new forte and soul and get a chance at the above profit with 2 customers in days or weeks just to repeat the cycle.

You found a car that should be sold bit of a loss, they chose that when they kept the car as a demo (or in my old town, lent them to football players and showed they up as "new" year old top tier f150s, mustangs, and expeditions with thousands of miles on them.)

 

[crozbee]

So think I have found a really nice deal. Going in Thursday to discuss:

2020 GT2
MSRP: $53,800
Dealer Discount: $6,500
Incentives: $9,300 (according to autobytel assuming correct)
Dealer Fee: $750 (aligns with what is on their site)
Estimated taxes: $1,140 (3% in NC)
Tags/Title: TBD

Looking like roughly $39,890 plus the tags/title/etc.

Does this look right? Are dealer fees negotiable? If so, I imagine once I'm there I should be able to get that down at least a couple hundred. Anything else I should be thinking about?

 

[fc528e]

So think I have found a really nice deal. Going in Thursday to discuss:

2020 GT2
MSRP: $53,800
Dealer Discount: $6,500
Incentives: $9,300 (according to autobytel assuming correct)
Dealer Fee: $750 (aligns with what is on their site)
Estimated taxes: $1,140 (3% in NC)
Tags/Title: TBD

Looking like roughly $39,890 plus the tags/title/etc.

Does this look right? Are dealer fees negotiable? If so, I imagine once I'm there I should be able to get that down at least a couple hundred. Anything else I should be thinking about?

This is a pretty great deal, in large part thanks to that over 10% dealer discount. See some recent posts on which dealer fees can be negotiated, but even if they don't budge, great deal IMO.

 

[AYip31]

So think I have found a really nice deal. Going in Thursday to discuss:

2020 GT2
MSRP: $53,800
Dealer Discount: $6,500
Incentives: $9,300 (according to autobytel assuming correct)
Dealer Fee: $750 (aligns with what is on their site)
Estimated taxes: $1,140 (3% in NC)
Tags/Title: TBD

Looking like roughly $39,890 plus the tags/title/etc.

Does this look right? Are dealer fees negotiable? If so, I imagine once I'm there I should be able to get that down at least a couple hundred. Anything else I should be thinking about?

is it a dealer demo? How many mile on it?
If is non demo car. Than yes, it’s an awesome deal!!! Yes, dealer doc fees are 99% non negotiable

 

[crozbee]

I sent them a message to confirm the # of miles. If it is a demo, but with an acceptable amount, I will negotiate further ($1/mile). Question on the language in the contract to ensure the lease can be bought out early. In the 1st post, the language seems fairly vague. Can I assume that the actual contract language is very clear that an early buyout is allowed? I don't think I saw an actual copy of anyone's actual lease agreement anywhere.

is it a dealer demo? How many mile on it?
If is non demo car. Than yes, it’s an awesome deal!!! Yes, dealer doc fees are 99% non negotiable

 

[AYip31]

I sent them a message to confirm the # of miles. If it is a demo, but with an acceptable amount, I will negotiate further ($1/mile). Question on the language in the contract to ensure the lease can be bought out early. In the 1st post, the language seems fairly vague. Can I assume that the actual contract language is very clear that an early buyout is allowed? I don't think I saw an actual copy of anyone's actual lease agreement anywhere.

Here is a copy of a lease agreement from someone I’m helping

see 9, 22D, 23B

 

[AYip31]

Here is a copy of a lease agreement from someone I’m helping

see 9, 22D, 23B

This is also the same language on my lease agreement, back about 2 months ago. When I lease buyout

 

[crozbee]

This is also the same language on my lease agreement, back about 2 months ago. When I lease buyout

Thank you. I will take a look through the language. Also, they confirmed 9 miles so it seems pretty solid.

 

[AYip31]

Thank you. I will take a look through the language. Also, they confirmed 9 miles so it seems pretty solid.

Lease rebates just went up across all trims.
Do watch out for BS fees and any dealer addon, like vin etch, pin strips, nitrogen filled tires, etc
Now go get that Stinger!!

 

[MYCHRONTOM]

Lease rebates just went up across all trims.
Do watch out for BS fees and any dealer addon, like vin etch, pin strips, nitrogen filled tires, etc
Now go get that Stinger!!

I just called in Tulsa OK. 24 mo lease went from $8900 down to $7500 and Customer cash went from $4500 down to $4000 if the sales manager is correct. 2020 GT2 RWD. I'm losing ground here...but have my eye on a G80 Sport...