2018 lease cash gone?

[Dave E]

Hi, just spoke to a dealer who told me there is no longer any lease cash on 2018 stingers. Is that true? I checked on kiausa and cant find any lease cash listed under offers for 2018 models. I feel like i have seen people purchasing using lease buyout here even a week or two ago. Anyone have any idea what the official deal is? Thank you!

 

[MerlintheMad]

I think lease incentive is good for a year from the car's build date? Did I read that a couple of weeks ago? I doubted it, because Kia wants to move the older cars. Unless they have some replacement inducement to sell MY18s, why would anyone go for one when they can get a MY19 cheaper!?

 

[Dave E]

I think lease incentive is good for a year from the car's build date? Did I read that a couple of weeks ago? I doubted it, because Kia wants to move the older cars. Unless they have some replacement inducement to sell MY18s, why would anyone go for one when they can get a MY19 cheaper!?

It would certainly help dealers move them, he is desperate to move it but says there is no lease cash available on the 2018 amd nobody is buying them. Its way above my budget without the lease cash. So i dont really see a reason for him to lie since hes losing out on a sale.

 

[MisterMac]

@Dave E , this is true. Lease cash is gone. The reason is that the vehicle has lost so much value already that no finance company is willing to assume the risk embedded in creating a lease. Enough lease cash couldn't possibly be offered to make it worth the risk and the manufacturer will not do so either.

The behind the scene facts are this. Kia paid out a lump sum to each dealer for remaining 2018 MY inventory as of April 30th. On a $52,000 MSRP Stinger GT2 I am guessing it was in the range of $10,000 dollars per car. Thus, while your benchmark acquisition price was invoice less incentives, you now need to target 10,000 less than before to purchase. Leasing will not be a viable option.

The good news is that the dealer could afford to sell you that $52,000 sticker GT2 for $37,000 or less.

 

[Dave E]

@Dave E , this is true. Lease cash is gone. The reason is that the vehicle has lost so much value already that no finance company is willing to assume the risk embedded in creating a lease. Enough lease cash couldn't possibly be offered to make it worth the risk and the manufacturer will not do so either.

The behind the scene facts are this. Kia paid out a lump sum to each dealer for remaining 2018 MY inventory as of April 30th. On a $52,000 MSRP Stinger GT2 I am guessing it was in the range of $10,000 dollars per car. Thus, while your benchmark acquisition price was invoice less incentives, you now need to target 10,000 less than before to purchase. Leasing will not be a viable option.

The good news is that the dealer could afford to sell you that $52,000 sticker GT2 for $37,000 or less.

Thank you very much for the clarification, visited the dealer just now. They promised the world on the phone. Got there in person and the price 45k.... what a joke, sitting there for 1 year already and going to sit there for an eternity.

 

[flycaster]

@Dave E , this is true. Lease cash is gone. The reason is that the vehicle has lost so much value already that no finance company is willing to assume the risk embedded in creating a lease. Enough lease cash couldn't possibly be offered to make it worth the risk and the manufacturer will not do so either.

The behind the scene facts are this. Kia paid out a lump sum to each dealer for remaining 2018 MY inventory as of April 30th. On a $52,000 MSRP Stinger GT2 I am guessing it was in the range of $10,000 dollars per car. Thus, while your benchmark acquisition price was invoice less incentives, you now need to target 10,000 less than before to purchase. Leasing will not be a viable option.

The good news is that the dealer could afford to sell you that $52,000 sticker GT2 for $37,000 or less.

Hey MisterMac, you seem to have a bit of inside knowledge regarding how Kia is handling its incentives for the Stinger. Perhaps you could help me out here. I'm very much interested in a 2019 GT2 and will be seriously looking to negotiate a good price for a Aug or Sept 36 month/10K lease. Any insight (or crystal ball) on how incentives may look? I wouldn't expect you to know the actual dollars involved, but perhaps you would know, relatively to present GT2 leasing incentives, whether or not there will be some good lease cash (and/or other negotiating dollars) available. Thanks.

 

[Ruturaj]

Hey MisterMac, you seem to have a bit of inside knowledge regarding how Kia is handling its incentives for the Stinger. Perhaps you could help me out here. I'm very much interested in a 2019 GT2 and will be seriously looking to negotiate a good price for a Aug or Sept 36 month/10K lease. Any insight (or crystal ball) on how incentives may look? I wouldn't expect you to know the actual dollars involved, but perhaps you would know, relatively to present GT2 leasing incentives, whether or not there will be some good lease cash (and/or other negotiating dollars) available. Thanks.

This will help you to get incentive, if you are planning buyout then do 2 year lease

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

 

[MisterMac]

Hey MisterMac, you seem to have a bit of inside knowledge regarding how Kia is handling its incentives for the Stinger. Perhaps you could help me out here. I'm very much interested in a 2019 GT2 and will be seriously looking to negotiate a good price for a Aug or Sept 36 month/10K lease. Any insight (or crystal ball) on how incentives may look? I wouldn't expect you to know the actual dollars involved, but perhaps you would know, relatively to present GT2 leasing incentives, whether or not there will be some good lease cash (and/or other negotiating dollars) available. Thanks.

Hello, @flycaster.

It's exciting you'll be joining the hive!!

Normally lease cash and incentives improve beginning September or October, so I'd expect them to be the same or slightly better then.

The reason is that the underlying asset continues to devalue, therefore, to achieve what Kia believes is a marketable payment over the term of the lease to the calculated residual value necessitates a larger incentive up front.

However, the bond market is crazy right now, making money cheaper, so KMF may actually lower the Money Factor to achieve the same payment, therein not needing to increase the lease cash incentive.

 

[flycaster]

Hello, @flycaster.

It's exciting you'll be joining the hive!!

Normally lease cash and incentives improve beginning September or October, so I'd expect them to be the same or slightly better then.

The reason is that the underlying asset continues to devalue, therefore, to achieve what Kia believes is a marketable payment over the term of the lease to the calculated residual value necessitates a larger incentive up front.

However, the bond market is crazy right now, making money cheaper, so KMF may actually lower the Money Factor to achieve the same payment, therein not needing to increase the lease cash incentive.

Nice response, Mac. So it seems that either way, lowering MF or giving a reasonably good leasing incentive, is to the consumers' benefit. My present lease is up the middle of Aug, and I really don't need that second car then...I want it, but can wait, ugh! Thus, if I can control my hedonistic desires and wait until Sept (don't think I could hold out much longer,) I could possibly get a better deal than if I were to lease in Aug, eh?

 

[MisterMac]

Nice response, Mac. So it seems that either way, lowering MF or giving a reasonably good leasing incentive, is to the consumers' benefit. My present lease is up the middle of Aug, and I really don't need that second car then...I want it, but can wait, ugh! Thus, if I can control my hedonistic desires and wait until Sept (don't think I could hold out much longer,) I could possibly get a better deal than if I were to lease in Aug, eh?

I think you will do as good as you could right now, if not better in August/September.

The best part about waiting is what's known as cash-to-dealer. Cash-to-dealer is money (incentive to dealer) on the back side that dealers can keep or use to help move their new inventory. They often use it to increase trade allowances above wholesale or to improve their profits. For you, this means you may be able to achieve an even lower sales price than invoice. When I buy later in the year, I always go for 1.5% below invoice, or about . "hold-back" is about 3% of the sales price (not including transportation), so I seek to make them split their hold-back with me. I know they can afford to do so because I also know they are getting some additional cash from the manufacturer on the sale.

Hope this helps you.

 

[flycaster]

I think you will do as good as you could right now, if not better in August/September.

The best part about waiting is what's known as cash-to-dealer. Cash-to-dealer is money (incentive to dealer) on the back side that dealers can keep or use to help move their new inventory. They often use it to increase trade allowances above wholesale or to improve their profits. For you, this means you may be able to achieve an even lower sales price than invoice. When I buy later in the year, I always go for 1.5% below invoice, or about . "hold-back" is about 3% of the sales price (not including transportation), so I seek to make them split their hold-back with me. I know they can afford to do so because I also know they are getting some additional cash from the manufacturer on the sale.

Hope this helps you.

Oh for sure, this is helpful. I have done a fair amount of "leasing" research on my own, but I also like to tweak the research with stuff from guys who may point out things that I never have considered...as you have done. I think one of the biggest assets one can have is to know the amount of manufacturer to dealer cash the dealer has to play with. Knowing this figure can greatly help when initially negotiating down from MSRP...before throwing in the "known" incentives into obtaining one's net cap. I was going to ask you if you knew the holdback on the GT2, but a quick search just found this site: 2019 Kia Stinger Prices: MSRP, Invoice, Holdback & Dealer Cost. Holdback is $1413 with a dealer cost of $46,669 on invoice of $47,087 and MSRP of $50,200. So, with these figures and your holdback discount of 1.5%, you'd go for $46,381 before discounting in the lease cash. As here in FL they allow for a $900 document fee (which is quite exorbitant and just about all dealer profit,) I figure I can either get them down on their doc fee and/or also take some more away from their holdback cash. I'm now thinking that in late Aug or Sept, it may be possible to arrive at a net cap of around $40K???

 

[MisterMac]

"As here in FL they allow for a $900 document fee (which is quite exorbitant and just about all dealer profit,) I figure I can either get them down on their doc fee and/or also take some more away from their holdback cash."

YIKES!! I'm so glad Texas limits the possible fee to $150.00 maximum. Around here the dealer fee is just $125.00.

I'll be surprised if you can get the dealer to lower the fee itself because they could end up in a law-suit for not assessing the fee equally to every buyer. However, finding another way to offset the fee to your bottom line is a great plan! Good luck!

 

[rytabb]

I am certainly not an expert, but I do not think lease cash is gone. Edmunds has it listed as running through at least July 1st, and I was looking at buying a Stinger up until about last week and dealers were still offering me the lease cash.

 

[Ruturaj]

I am certainly not an expert, but I do not think lease cash is gone. Edmunds has it listed as running through at least July 1st, and I was looking at buying a Stinger up until about last week and dealers were still offering me the lease cash.

It's still there on 2019. It renews every month around 4th or 4th day. This thread is about 2018 models.

 

[MisterMac]

G

I am certainly not an expert, but I do not think lease cash is gone. Edmunds has it listed as running through at least July 1st, and I was looking at buying a Stinger up until about last week and dealers were still offering me the lease cash.

I stand corrected, there is still lease cash on 2018 Stingers through July 1st in deals that close by July 15th.