Evaluate this 2020 GT1 deal

[seh0872]

MSRP with options and destination charge $49,280
Dealer discount $3,980 (8.1%)
Kia lease incentive (24 month) $7,900
Competitive vehicle incentive $1,500
Adjusted cap cost $ 35,900

Trade-in value sux -- offered $10K on a clean 2013 Audi allroad with 80K vs. NadaGuide estimated range between $11,700 - $12,800. Not sure what more I can do here. Cash offers won't be much better.

With that trade-in, a 24-month lease (which can be extended to 30 months) will only cost $215/month. Residual value is 54% (which is calculated off of MSRP, correct?).

Based on a published internet discount at another dealer, I feel I can do a little better. That dealer is offering a 9.8% discount, but I have no idea what they'd offer for my trade. I want to be cautious because I'd rather deal with my local dealership, but this other one has the car I want.

I'm thinking I can get the dealer to close the discount (it's about $1000) and come up a little on the trade.

Your thoughts?

 

[jd284]

the lease cash cannot be stacked with competitive incentive - it can only be used with financing. I am shopping around now too and i would say that is an exceptional dealer discount on a 2020 - ive been getting around 3k off. If you can find a 2019 the deals are even better for the lease cash. Leasing these cars is generally a bad deal because the money factor is so high. It comes out to over $100 a month in "rental fee". They make back a good portion of the lease cash. Hence, I am looking for lease buyout deal right now. also, most dealers have shared that due to the covid situation, trade in valuations will be lower, which sucks.They are low balling my s3. only the Audi dealer will give me "very good" kbb value

 

[seh0872]

The Audi dealer offering close to KBB makes a bit of sense, as they likely intend to keep the car on their lot, versus the Kia dealer who will take it to auction. I don't suspect a used Audi will sell well on a Kia lot.

The dealer actually has a 2019 GT2 they'd love to dump, but don't love it...wrong color combination, and I like the badging on the 2020. Maybe I'll ask them to run the lease anyway. It may convince me.

It's true the money factor is high -- equivalent APR is 4.4%, but the lease incentives more than make up for it. Finance incentives on the 2020 GT1 are $3K, versus $7.9K on the 24 month lease.

I will absolutely confirm the competitive incentive. The dealer quoted it that way, but I was suspicious also.

Lastly, I have three dealers willing to buy my car for cash, but I'm not expecting much if cash price = wholesale. It won't beat the trade-in value. That's a hard pill to swallow.

 

[seh0872]

So here's the final deal...

2020 GT1 in Ceramic Silver. Floor mats included.
MSRP - $49,280
Sale Price before rebates - $45,800
KIA Incentive (24 month lease) - $7,900
Adjusted Cap Cost - $37,900

It's $2,000 higher than my first post, because as jd correctly pointed out, I couldn't double stack the rebates, plus to get the color combination I wanted (Silver/Red), I had to give up an additional $500 for the dealer to fetch the car from another state.

Given a 7% dealer discount ($3,480) plus $7,900 in rebates, that's just over 23% off MSRP.

Car arrives on Thursday.

 

[G-323247]

Congrats!!