Why the push for leasing, Kia?

[adam1991]

OK, it looks like I can get $7000 cash on the hood for entering into a lease with Kia on a GT2.

But if I want to go in and buy? That's not there. If I finance through KMF, it's $2500 incentive. I *might* be able to get another $2500 cash on the hood, if don't take their 0% financing (or if I go elsewhere). They do seem to have a finance rate of 1.75%, which is pretty good; I assume that would allow me to take that other $2500, but I'm not sure. So the choice seems to be, pay KMF 1.75% for a loan and get $2500 back, or pay 0% and don't get the $2500 back. A quick calculation on a $40K loan is: at 1.75% on that $40K loan, pay $1805 in loan interest over 60 months and get $2500 back, for a net extra cash on the hood of $700. Or else take the 0% and lose all the cash on the hood.

That's $2500 + $700 = $3200 cash on the hood for a purchase. It's certainly not the $7000 for leasing.

Why are you trying to nudge people into leases, Kia? What's your end game here?

There's a red GT2 I would seriously consider buying today, but between this and my reserved judgment on buying a $50K Kia, it's not yet happening.

 

[Travis Wills]

The current equivalent interest rate(money factor) for leases is about 3.3%. That is how they are able to offer a bigger discount on leasing than on traditional financing. The MF used to be the equivalent of almost 5% on Stinger leases. Then there was huge discounts on those.

You can always do a lease buyout to avoid some interest on a lease and still get the discount. With the lower discount now it isn’t as attractive.

 

[MerlintheMad]

They make a profit on each car the dealers move, which turns into more rolling advertising, and more sales and boosted reputation. Leases are attractive because many people cannot purchase, or won't, because they want to have the freedom to move out of a car in two or three years. The buyout added to the very large lease incentives end up attracting even more customers. Why is there some other "end game here"?

 

[adam1991]

They make a profit on each car the dealers move, which turns into more rolling advertising, and more sales and boosted reputation. Leases are attractive because many people cannot purchase, or won't, because they want to have the freedom to move out of a car in two or three years. The buyout added to the very large lease incentives end up attracting even more customers. Why is there some other "end game here"?

Well, I didn't say there was, now, did I?

So your assertion is that THAT'S their end game. Simple enough.

So those of us for whom leasing is not an option, end up not buying Stingers. Got it.

 

[rk88]

Well, I didn't say there was, now, did I?

So your assertion is that THAT'S their end game. Simple enough.

So those of us for whom leasing is not an option, end up not buying Stingers. Got it.

Why not just lease then buyout?

 

[MerlintheMad]

So those of us for whom leasing is not an option, end up not buying Stingers. Got it.

Why can't you lease?

 

[adam1991]

Why can't you lease?

20K+ miles/year

 

[NS_Stinger]

Of course KIA wants you to lease. You basically rent a car from them for a few years, return it back to them in good shape with a guarantee of a pre-determined amount of mileage or lower. Everyone that leases takes care of the cars and doesnt want to pay mileage overage fees or damage costs on return and they turn around, inspect it, call it a certified pre-owned and sell it again to someone else AND get you into another new lease. It's a brilliant money making cycle for them.

 

[DaveC]

20K+ miles/year

So what? If you buy the car out, it doesn't matter what the mileage is. Kia doesn't care since they're not getting the car back. I think this is an easy answer.

 

[adam1991]

Everyone that leases takes care of the cars

hehehehehehehehehe

 

[Nedstand]

Of course KIA wants you to lease. You basically rent a car from them for a few years, return it back to them in good shape with a guarantee of a pre-determined amount of mileage or lower. Everyone that leases takes care of the cars and doesnt want to pay mileage overage fees or damage costs on return and they turn around, inspect it, call it a certified pre-owned and sell it again to someone else AND get you into another new lease. It's a brilliant money making cycle for them.

I leased a GT2 2.5 years ago, and there's ZERO chance I will lease another one. Now I have 6 months to decide if I want to buy it as it's almost brand new (less than 8,000 miles), or turn it in at the end of the lease.

Did I mention ZERO chance I'll lease another one? It's worth repeating.

 

[Travis Wills]

I leased a GT2 2.5 years ago, and there's ZERO chance I will lease another one. Now I have 6 months to decide if I want to buy it as it's almost brand new (less than 8,000 miles), or turn it in at the end of the lease.

Did I mention ZERO chance I'll lease another one? It's worth repeating.

Could you tell us why you won’t lease again? We’re there fees that you weren’t aware of? Could you have got a better finance deal?

 

[Nedstand]

Could you tell us why you won’t lease again? We’re there fees that you weren’t aware of? Could you have got a better finance deal?

The primary reason is the run-around trying to get warranty repairs authorized and done as discussed here:

Are the Kia Dealers at "war" with Corporate?

From this customer's perspective, that's how it appears. I have 2 open cases with Corporate, both appear to be in "limbo". In both cases, the Kia dealer told me I needed to open a case with Corporate to get resolution. Once the case was opened, I was told Corporate would reach out to the dealer...

stingerforum.org

The time and aggravation is getting under my skin.

The second reason is they no longer offer the GT2 with a light color interior, only red & black, which is a non-starter for me living in sunny & hot LA.

The third reason is my kids are 15 & 12, and I think I'll need a car with more rear legroom in the next year or two.

I do like the GT2, but some of the stories I read here make me nervous about quality and if Kia will really back the warranty.

 

[Girder]

Leasing is better for Kia and the customer. Leasing increases vehicle residual value and customer turn around time. Leasing also is better for you as the customer as you get a new vehicle every 3-5 years and don't roll over negative equity. Kia used to be huge on long-term financing but it's screwing up Kia, the dealers and the customer.

 

[WRXtoStingerGT]

Why lease a vehicle with a 10 year warranty? I can understanding leasing a Maserati or Jaguar where reliability is questionable and the warranty is very short...

Why lease if you want to buyout at the end? Such foolish financial decisions...

I personally have never leased a car, but, the only people I know who lease their vehicle are friends who are small business owners and play games with the tax deductibles... reminds me that I should probably setup an LLC someday lmfao!

I think leasing is a great option if you want a toy that you know is not something that is practical or a good daily driver. I guess leasing is good if you're fine saving money short-term but losing money long-term. To each their own.

When I was shopping for my Kia they were not pushing to lease but instead to finance; at least in south Florida where I was shopping at the time.

 

[MerlintheMad]

As already said, leasing gives you the privilege of changing to a new vehicle every couple or few years. Lease rent is the cost of that privilege. When I realized, after a couple months, that I probably would want to keep this car, and learned here about the buyout option now (instead of at the end), and realized that doing the buyout would save us over $5K dollars in avoided lease rent, the obvious move was to buyout now. At the time I leased, I was uncertain about keeping this car: after all, after three years what improvements would Kia make to the Stinger? That question, plus difficulty in staying within the allowed miles, pushed me toward keeping this car: finally I decided it satisfied me as-is: it wouldn't matter if spiffy additional tech or other "improvements" came along down the road: none of that would diminish a MY18, and I thoroughly enjoy THIS vehicle. So now, nearly at the end of that three years, I am very glad to own it outright and expect years of pleasure and satisfaction to come.

 

[adam1991]

after three years what improvements would Kia make to the Stinger?

Not Stinger-specific, but generically: pretty much 5 years brings quite a bit in terms of safety technology (I'm talking passive stuff), and any more it's bound to bring at least one technogoodie that you'll want (for example, wireless Android Auto/Apple Carplay).

 

[MerlintheMad]

Not Stinger-specific, but generically: pretty much 5 years brings quite a bit in terms of safety technology (I'm talking passive stuff), and any more it's bound to bring at least one technogoodie that you'll want (for example, wireless Android Auto/Apple Carplay).

Hah. I don't even use what there is now. I have a ZTE flip phone and a TracFone account; and my phone is set on vibrate only, i.e. I never notice calls or messages. I suppose that it might be music subscription service compatible, but I have zero interest in any of that: I didn't even try out my three free months of Sirius XM (or whatever it's called). And I don't have any "safety technology" on my GT1 and don't want any.

 

[WRXtoStingerGT]

I learn something new every day!

Thanks!

 

[Nedstand]

RE: Leasing - everyone has a different financial situation and motivation. For example, some value "pride of ownership", to others it's not significant. I'm in commercial real estate, and my mantra is to own assets that typically increase in value, and rent/lease those that are expected to decrease in value. Perhaps these Stingers will be highly collectable one day, but IME the odds favor real estate going up, and used cars going down.

RE: Safety features - While it doesn't happen often, the "Collision avoidance" warning... well I find it to give mostly false alarms. There's a street in LA near where I live that's rather narrow and very windy. Parking is allowed both sides of street except on "red flag" days. Two or three times driving down that street with no other moving vehicles, only parked cars, the "Collision warning" came on and the Stinger slammed on the brakes. I almost soiled my pants the first time. Last time at dealer I asked if that could be disabled, and their reply was "No... but you're not the first person to ask".